3 kinds of real estate disputes

On Behalf of | Feb 22, 2023 | Real Estate Disputes

Real estate disputes can happen in a variety of ways between buyers and sellers. These legal disputes are often complex in nature and span a number of issues. Even what seems like a small dispute at the time could lead to a large legal battle. Many of these legal battles can take a long time to resolve and cost a lot of resources.  

Whether you’re buying or selling, you should be aware of when a legal dispute can occur. By limiting the cause of real estate disputes, you can save time and money. Here’s what you should know:

1. Breaches of contract

Nearly every business transaction abides by a contract. A contract ensures that each party understands its obligations when handling a real estate transaction. Yet, while contracts are typically legally binding, there could be a contract breach if either party fails to uphold its obligations. 

For example, if a homeowner was required to make major repairs before a transaction proceeds and didn’t by a certain date, then that party may be violating the terms of a contract.

2. Unclear titles

Most people assume that, when a seller presents a title for a home or building, they are the owner of said title. However, if there’s any confusion as to who officially owns a property, then there could be title issues. This could result in a transaction falling to the wayside and certain obligations not being met.

While title insurance can protect buyers, the reality is that title mistakes often get overlooked — and that can lead to significant legal issues down the road.

3. Failures to disclose 

Homeowners are legally required to disclose certain issues with a property they intend to sell. 

If a buyer finds issues after an agreement was made, then this could lead to a dispute if there’s any indication that the homeowner either knew or should have known about the problem. This is one of the most common reasons for litigation after a sale.

As a buyer, seller or long-time owner, you may need to be aware of your legal rights if a real estate dispute arises.