Negative Fraud

Negative Fraud Definition

Negative fraud is lying through withholding information.


Negative fraud occurs when a real estate agent decides not to share information with the buyer that would have been required to be disclosed by law. Agents are often financially motivated to withhold information that could jeopardize a transaction. They do it to get their clients to enter a contract, therefore earning themselves a commission.

The damage they cause can be financial damage like the need to repair the hardwood floors or it could even pose personal harm to the buyers like damage to their health caused by having mold in the basement.


Oleg Donets headshotJules Borbely


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