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.