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What are some situations that may result in real estate litigation?

On Behalf of | Apr 3, 2023 | Real Estate |

Real estate law has more facets than many people realize. As the buyer, seller or property owner, you should understand the most prevalent reasons for litigation over real estate contracts.

There are a few common causes of real estate litigation.

Breach of contract

Breach of contract litigation occurs when one party in a purchase and sale contract fails to hold up their end of the agreement. Whether the seller backs out without just cause or the buyer unjustly cancels the contract, this typically constitutes a breach.

Defect disclosure issues

When the seller fails to disclose known defects, such as damage to the roof or a water leak, the buyer has a defect disclosure claim.

Title defect problems

Title defects are problems with the chain of ownership of the property. An unsatisfied lien is a common problem. The title search is an important part of the purchase process for this reason. The buyer can seek restitution from the seller to satisfy the title defect.

Boundary disputes

Whether the neighbor had permission from the prior owner to use part of the yard or you just discovered that a fence your neighbor installed is actually over your property line, boundary disputes are contentious. A property survey and litigation can resolve the problem.

Real estate litigation is more common than many people believe. The first time you face a conflict like this, consider the benefit of settling it in court to minimize your stress and anxiety. Negotiation is a good place to start, but litigation is often necessary for final determinations.