Seller financial fraud

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October 05, 2025

by a searcher in Toronto, ON, Canada

If anyone has had experience recouping money after closing and discovering seller financial fraud that breached reps/warranties, would be great to hear your strategies and stories. Dealing with this situation now and trying to determine the best approach and understand how realistic it is to actually recover.
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Reply by a professional
from University of Akron in Charlotte, NC, USA
Happens more than you imagine. I have experienced it. But, it's so hard from a legal perspective to do anything that it doesn't get into court much. It's why the process is soooo important. It's why open and honest communication is important. I advise people to stay away from deals where the owner and the process is very closed because there is so much that is hidden and the best source are employees.
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Reply by a searcher
in St. Louis, MO, USA
Did you have an escrow?
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