In the modern day world, disputes regarding real estate are very common. Whether you are a seller, buyer, or owner of a real estate, once you get caught in the lawsuit, it can turn out to be a money guzzler for you. It is better to know about some of the most common causes of real estate litigation so that you can keep your real estate dealing smooth and avoid getting trapped in the lawsuit due to any type of dispute.
Not disclosing a defect on property
One of the biggest reasons for real estate litigation is hiding any type of defect in a property. It doesn’t matter whether you are selling commercial property or home, if it has any type of defect, then it is your responsibility to disclose it while trying to sell it or put it up on rent. Disclosing the defect while selling such property is also mandatory according to the law. Holes in roof, leaks, molds and non-permitted improvements are some of the most common examples of defect which you should disclose at the first place.
For example, if you sell a commercial property to a person and after buying that property, if the new owner finds such types of defect in your property then he is entitled to file a claim which will state that you were aware about the defect during the time of sale and purchase and you didn’t disclose it willingly. So while dealing in real estate, honesty is the best policy.
Breach of contract
A contract is a major part of any real estate deal and that’s why you should pay proper concern while designing or signing a contract. All the contracts contain a different type of terms and condition that must be complied with. Some very common terms and condition mentioned in a contract are closing date, financing, title clearance, etc. If you are not able to oblige to any of these terms and condition then the buyer has the right to sue you on the basis of breach of contract. In order to avoid such issues, you should allow your attorney to go through the sales contract carefully and make you understand the complex terms and conditions.
Problems in real estate also arises when properties boundaries haven’t been correctly registered or the real property line is not consistent with the legal one. Whenever you purchase a property, your attorney can know about the legal boundaries and let you know about the legal condition and actual status of the property.
Real estate industry is a very profitable industry which can turn out to be a fruitful investment option for you but you should take proper care regarding the rules and laws related to real estate sale and purchase because getting trapped in a lawsuit is the worst nightmare for any real estate person.