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Common causes of real estate disputes

When involved in the buying, selling or otherwise transferring of land, complications can arise. When these complications arise, there is a lot at stake. Real estate is very often the most significant financial risk a person takes in their life.

There are many ways that a dispute can come up during, or after, a real estate transaction. Here are five of the most common causes of real estate disputes.

What causes a real estate dispute?

  • Breach of contract: When ownership of a property is transferred, a contract is involved. In the contract are strict terms and obligations that pertain to items such as financial terms, home inspection, closing date, closing costs, etc. If a party fails to comply with the terms outlined in a legally binding contract, they face legal consequences.
  • Real estate fraud: A person can be accused of committing real estate fraud at any state in the real estate transaction. Fraudulent behavior includes any action to misrepresent or falsify information in a way that creates a financial advantage.
  • Bad repairs: Oftentimes, parties agree to requests for repairs at closing. If the party agreeing to making the repairs fails to do so, or does so in a way that is negligent, the buyer may take legal action.
  • New problems: In all homes, new problems arise on a regular basis. If a person has recently assumed ownership and it becomes apparent that there was an undisclosed problem, that is grounds for a real estate dispute.
  • Title issues: A critical part of any real estate transaction is the presentation of a clean title. A title is the rights to a piece of property. Having a clean title means that it is free of any liens or levies and that no other party is eligible for legal ownership.

Real estate transactions are always high stakes, some more so than others. When complications arise, many people choose to go at it alone, or resolve the dispute through their real estate agent. What many people fail to appreciate is how embedded real estate, a person’s biggest purchase, is in the law. The best way to avoid a real estate dispute is to work with an experienced attorney off the bat.

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