Real estate has made many investors rich. But apart from the monetary reward that it brings, it is also associated with problems, such as legal disputes that can be caused by a breach of contract, negligence or breach of duty, boundary disputes, specific performance, and failure to disclose property defects. It cannot be argued that buying a home involves expensive transactions and it may even eat up all the money that a person has earned for a lifetime. With so much hard-earned money on the line, it is no wonder why disputes may happen from time to time.
Some disputes in real estate may just be caused by a simple misunderstanding. In such circumstances, the dispute may be worked out easily even without legal mediation. Other disputes, though, can be more complicated and may be caused by more serious reasons. Such disputes may lead to court litigation, which can be costly and take some time to be resolved. Legal disputes require much more than just a simple third-party mediation. They need the expertise of a licensed lawyer to close the case.
Understanding the Various Causes of Legal Disputes
Breach of contract legal disputes include non-compliance of the terms and conditions stipulated in the legally binding contract, such as those involving payment terms, closing date, financing, title clearance, and many more. Negligence or breach of duty refers to a landlord’s failure to carry out the required maintenance and repairs for the property, resulting in accidents and injuries to people. Boundary disputes refer to problems that occur when the boundaries of properties are not correctly registered in the proper legal bodies. Specific performance, on the other hand, refers to the inability to perform any or all necessary actions that are stipulated in the agreement. Lastly, failure to disclose property defects refer to the inability or failure to disclose any problem that the property may have. It is required by law to disclose problems associated with the property being sold or leased. Problems that should be disclosed include non-permitted improvements that have been done to the property, leaks, holes in the roof and gutters, and mold formations.
Real estate legal disputes can affect brokers, sellers, buyers, and even construction workers or contractors. If you are into real estate investing, here are some ways to avoid the headaches caused by real estate disputes.
Hire an Experienced Real Estate Attorney
When investing in real estate, make sure to not do it alone. Instead, always have an experienced real estate lawyer as your backup. A real estate litigation lawyer can help in the creation of contracts and can negotiate with buyers or sellers on your behalf. The lawyer will ensure that the contract covers everything that you might need and make it enforceable.
In addition, the lawyer can perform an evaluation on titles and see if there are problems involved. For instance, there are cases where the property is being sold by an unauthorized person. There are also cases where the property has some encumbrances, such as liens or judgments. It can be hard to spot these issues if you are not so familiar with the legalities associated with real estate
In summary, experienced lawyers can perform a title search and spot any issues with the property you are trying to buy. If there are indeed issues, the lawyer will know how to address them legally. The lawyer can also help in transferring the title to your name once negotiations and payments have been closed.
Hire a Trustworthy Broker
Property sellers often have their own brokers. But if you want to make the most out of your purchases and investments, it would be a good idea to have your own credible broker to help you with your purchases. Experienced brokers are reliable, and they are often neutral when it comes to the scope of their work. The right broker can help you prevent unnecessary disputes that might occur in the future.
Avoid Complicated Deals
Some real estate deals can be complicated. More often than not, these types of deals often lead to probable disputes in the future. If you think a deal is too complicated, think twice before buying the property. If there are so many risks involved in the negotiation, ask yourself first if the risks are worth taking in the long run. If not, it would be better to just find other properties that provide better deals.
Real estate legal disputes can get you into financial turmoil apart from the emotional and mental breakdown it can cause you. Hence, you should make it a point to avoid them as much as possible.