Real estate disputes can be time-consuming and stressful, which is why you want to deal with them promptly. These legal disagreements are quite common and can occur because of breach of contract, property damage or defects, title disputes, and other causes.
Although finding yourself in a real estate dispute can be stressful, by knowing the right strategies for dealing with it, you can prevent financial losses and legal issues.
In this article, we outline the most common real estate disputes, how to prevent them, how to deal with them should they happen, and why seeking legal guidance can protect your interests.
What Causes Real Estate Disputes?
Real estate disputes vary in subject matter since they can be between many different parties, such as neighbors, lenders and borrowers, or buyers and sellers. However, there are some real estate disputes that are commonly seen, and they include the following.
Contract Disputes
A real estate contract outlines the buyer-seller agreement regarding the property. Conflicts related to this contract can include breach, misunderstanding of the agreement terms, or payment issues.
Undisclosed Property Defects
If there are problems with the property being sold, it’s the seller’s responsibility to disclose them to the buyer. If they don’t, this could result in disputes.
Title Defects
These defects basically obstruct the property ownership, such as if there’s an incorrect legal description of the property’s boundaries or a previous mortgage that hasn’t been released.
Title defects can be serious, as they can cause issues with the buyer securing a property title.
Tenant-Landlord Disputes
Arguments between tenants and landlords can arise for many reasons. These include:
- Nonpayment, such as if the tenant is behind on payments.
- Repair and maintenance, such as if there are disagreements over who’s responsible for them.
- Evictions, such as if the landlord wants to force the tenant out of the property.
- Lease violations, such as if there’s property damage.
Easement Rights
These rights specify that one party has the right to use the other’s property for a clearly-defined reason, such as conducting maintenance. Conflict can arise if either party isn’t following the guidelines outlined in the contract: perhaps the owner wants to restrict access to the property or a party is trying to use the property for other, prohibited, reasons.
How Can You Prevent Real Estate Disputes?
The most effective way to prevent real estate disputes is to have a comprehensive, clear real estate contract. This should be drafted to outline the parties’ responsibilities and rights, scope of work, and payment schedules.
When the contract’s terms and clauses are legally sound while being easy to understand, you’ll avoid misunderstandings or conflicts.
Having a well-drafted real estate contract can also help prevent disputes in the future because you can refer back to it when misunderstandings or issues arise, helping you to state your case.
To ensure you have a professional and polished real estate contract, post your project on ContractsCounsel, an online legal marketplace connecting clients to vetted lawyers experienced in drafting and reviewing real estate agreements.
Due Diligence
Due diligence refers to researching a property before agreeing to purchase it. This includes getting it inspected for any problems, ensuring there are no legal concerns, and having property title clarity. By checking off these activities, you can reduce the risk of many issues during the agreement.
Documentation
Keeping all your important documents, such as your real estate agreement, in a safe place ensures they’re available when required.
Other things you should document include:
- Any communication between parties, such as emails and texts.
- All verbal requests and agreements. For example, if parties agreed to an extended timeframe or repairs, these should be written into the contract.
Understand Real Estate Laws
Since real estate laws vary quite a bit in different states, it’s essential to learn about all taxes, zoning, and environmental rules in your location.
That said, there could be legal details that you miss or don’t think are important, which is risky. This is why hiring a lawyer can be helpful.
An experienced real estate lawyer will give you the full legal picture of the situation and ensure you’re covered by having all the legal knowledge you need.
How Can You Resolve Real Estate Disputes?
Depending on the nature of your real estate dispute, there are many effective strategies to resolve them out of court.
Negotiation
Without bringing any third parties into the dispute, negotiation involves direct communication with the other party. As long as communication remains professional and polite, it can be an effective way to deal with disputes and prevent them from intensifying.
Alternative Dispute Resolution (ADR)
There are two common ADRs that can help you resolve a real estate dispute.
- Mediation. This is an informal setting in which a neutral third party facilitates communication between parties. Mediation enables the parties to express their concerns and creatively find a solution to the problem themselves.
- Arbitration. More formal than mediation, arbitration is a strategy to consider if you and the other party can’t negotiate on your own. An arbitrator will hear both parties’ concerns and then make a final, binding decision.
Do You Need a Lawyer for Real Estate Disputes?
Although you might feel like you could resolve your real estate disputes via negotiation, the truth is that these types of disputes can be complicated. This is why hiring a lawyer from a platform such as ContractsCounsel is a good idea.
A vetted, experienced lawyer will provide peace of mind by knowing all the real estate laws in your specific location. They can help you with other things during the dispute process, such as:
- Drafting legally accurate documents.
- Preventing you from engaging in communication or agreements that can be harmful.
- Representing you, such as if your case goes to court.
- Uncovering red flags in the real estate contract.
- Ensuring the property title is free of any legal issues, such as easements.
Do you need help with a real estate dispute?
If you find yourself dealing with a stressful real estate dispute, you should hire a vetted lawyer from ContractsCounsel. By having an experienced lawyer on your side, you can secure your position and avoid expensive litigation.
