Today’s real estate market is full of legal disputes. Some real estate squabbles can be handled out of court, but when the parties are unable to settle on a solution, real estate litigation becomes necessary. Whether you are a homeowner, a condominium association, a property management firm, or a commercial real estate developer, you will probably face an issue with your property at some time in your career. We will look at the most frequent reasons for legal battles and some strategies for avoiding them.
Breach of Contract
Sales contracts are agreements. You are signing a contract when you enter into a real estate sales agreement. The terms and conditions of the sales contract will include provisions on when the closing will take place, title clearance, financing, and which assets will be included in the purchase transaction. If one of the parties to the bargain fails to comply with the conditions outlined in the agreement, they may be held liable for breach of contract by the other party.
It is crucial to go through your real estate sales contract thoroughly. We recommend that you employ an attorney to review the document. In many cases, real estate brokers will utilize a standard contract that is not specific to your transaction. These boilerplate contracts may not safeguard your rights or help you achieve your objectives regarding the property’s sale or purchase. An attorney can look for warning signals that might cost you long-term.
If your attorney discovers any red flags in the real estate contract, they may negotiate a solution with the other party. It is preferable to carefully analyze the contract before signing it than to become bound by a contract that is disadvantageous to you because of careless haste.
Failure to Disclose a Defect on the Property
In Arizona, a seller is required by law to reveal any known flaws that could reasonably impact property value. The buyer may take legal action against the seller if they discover a previously unknown defect after closing on the property. A buyer has the right to bring a lawsuit against a seller for failing to disclose an acknowledged and obvious flaw. The plaintiff must show that the defendant was aware of the problem or should have been aware of it yet purposefully concealed it.
Common defects in the property include holes in the roof, mold on the walls, leaks, and construction that has not been permitted. Assume a buyer purchases a warehouse. The new owners discovered major electrical issues that needed addressing. The seller refuses to reveal these flaws, and the buyer is now on the hook for $100,000 in construction costs. In this instance, the buyer may sue the seller for failing to disclose a defect he was aware of before purchase.
Breach of Duty or Negligence
Real estate agents can be liable for negligence or a breach of duty. Real estate agents have an obligation to act in their clients’ best interests rather than in their own or the interests of a third party under Arizona law.
Traditional real estate agents are also expected to provide the highest level of service possible. In addition, real estate professionals must deliver on all obligations to the best of their abilities. When real estate agents make an error that results in their clients losing money, they are accountable for any injury caused by their carelessness. Real estate experts must also communicate anything that could assist their customers.
For example, suppose a real estate agent knows about a defect in the property but refuses to disclose it to the client because he or she is unwilling to forgo the commission. In this instance, the client has the legal right to file a lawsuit against the real estate agent.
Specific Performance Failure
A failure to fulfill obligations in a real estate contract is one of the most typical causes of litigation. When someone is a party to a residential or commercial real estate contract and fails to perform an action required by the agreement, that person has the right to file real estate litigation. A specific performance lawsuit can be filed by the individual who was harmed to force him or her to follow the provisions of the contract.
If you are a buyer or seller in a real estate deal, and the other party claims you are not living up to your obligations under the contract, you should contact an attorney as soon as possible. Depending on the specifics of your case, you may be required to perform all or some of the contract’s requirements.
If you are unable to pursue the option presented to you, your attorney may be able to suggest a course of action for you to prevent real estate litigation. Perhaps you can negotiate with the other person. You may not have to perform the specific performance asked for by the other party in some situations because no such requirement is stipulated in the agreement.
When the parties in a real estate deal fail to properly define property lines, litigation may ensue. In some cases, property lines are not correctly recorded. And in other instances, the residents of a home do not accept a legal line as their functional border.
By looking into the legal boundaries of your property, you can avoid land dispute litigation. Your attorney will inform you about any potential claims after you have researched the limits.
Contact a Real Estate Litigation Lawyer Today
Whether you are bringing a legal claim against a buyer or seller, or defending one, we can assist. Schedule your initial consultation with the real estate litigation attorneys at Anthony Law Group, LLC right away to determine how we might defend your interests.