Possible Real Estate Fraud Case

Asked about 5 years ago - Bayside, NY

I purchased a mixed-use building (retail/office) earlier this year and the transaction was based on owner-financing with a substantial down payment.

The building was vacant except for 1 retail tenant, which helped cover some of my mortgage.

A month ago, the retail tenant vacated the space and they are not returning my calls.

After doing some research online to find the tenant, I found out that the seller and the tenant are related (mother/daughter).

I paid more for the building because of this immediate income stream and strongly feel this was a scam. The tenant said business is great and a few months later leaves.

I need to take action on this matter right away. I hope they are not waiting for me to default on this loan and take the property back.

Attorney answers (2)

  1. Thomas Daniel Kearns

    Contributor Level 8

    Answered . New York is fairly tough on these types of claims and you must review your contract carefully. However, if the tenant was in fact related and the tenant did make an affirmative statement that was intentionally misleading, you may have a case. Tough one, but a case.

    This is not legal advice which would depend on a thorough reviews of documents and the law.

  2. Donna Kirk Seyle

    Contributor Level 7

    Answered . Did you receive a copy of the lease and a Tenant Estoppel Certificate related to this tenant? These documents should have been provided during escrow. Your claims and remedies depend upon the kind of lease, duration of lease, notice reqirements and many other factors, in addition to an potential fraud claims. You could have several varying claims, with different remedies, in this scenario.

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