The real estate market is in no way an exception to legal disputes and litigations. It has become quite common to have a conflict regarding real estate, be it with your seller, buyer, tenant, or even a neighbor. While there is plenty of help available from the legal experts to resolve any issues, the better alternative is to be aware of any possible disputes you could confront.
If you are planning to make a real estate purchase in the future, read on to know of the most common issues that could result in real estate litigation.
1. Undisclosed Property Defects
In most states, sellers are obligated by law to disclose any known and unnoticeable defects that may affect the value of a property. However, buyers often end up discovering the problems that were not disclosed to them before the sale was closed.
The information in the closing documents and the inspection report could prove to be invaluable in such cases. If the seller was aware of the issue with the property and attempted to hide it to increase the value of the house, the buyers can initiate legal action against the seller.
2. Breach of Contract
Any real estate deal should include legal contracts signed by the associated parties. This applies to sales, as well as construction. One can find reliable real estate contract templates that apply to any real estate scenario.
If either party to the agreement fails to perform in line with the terms of the contract, it presents grounds for litigation. The plaintiff should be able to prove a breach of contract to recover compensation for damages caused by the failure to fulfill the contract terms.
3. Breach of Duty
Licensed real estate agents have a legal obligation to act in the best interest of the clients they are representing. Often, the client has either a written or oral agreement that determines the terms of the business dealings. Be it in the buying or selling process, misrepresentation of facts, and any damages caused by it could lead to legal measures.
Additionally, a realtor or a broker also has to keep sensitive information such as the financial details of their clients strictly confidential. At the same time, they also have to disclose all information beneficial to the client as well. If the realtor’s services are not aligned to the best of the client, then it can give rise to a breach of duty lawsuit.
4. Breach of Implied Warranties
In real estate, the seller of a property or the contractor expressly ensures the quality of the construction and the materials used. It could also be related to real estate titles, deeds, or any further assurances. These warranties are crucial to the trust and assurance of business transactions.
They protect the right of the buyer and provide legal relief for the purchases. If this kind of implied warranty is breached, then there could be a base for lawsuits.
5. Zoning Issues
Zoning refers to the regulations implemented by public authorities on privately-owned land. These rules are essential to govern local communities, regulate business activities, and to protect residential neighborhoods. A zoning dispute could be between the authority and an individual or two individuals regarding property lines or restrictions.
Zoning ordinances vary from one city to another and neighborhood to neighborhood. When a property usage conflicts with what is allowed, or with someone else’s interest, it could head to a legal dispute.
Investing in real estate is one of the most significant purchases you make in your life. If you are involved in any real estate dealing, make sure that you have the law on your side. There could be additional statutes as well as requirements that apply specifically to your transactions.