Common Legal Disputes in Real Estate Transactions
Real estate deals often involve large sums of money, legal documents, and multiple parties with competing interests. Because of this complexity, legal disputes are not uncommon and can delay, disrupt, or completely derail a transaction. In this blog, we explore the common legal disputes in real estate transactions, what causes them, and how you can avoid costly mistakes with proper legal guidance and preparation.
Contract Disagreements Between Parties
One of the most common legal disputes in real estate transactions involves a breach of contract. These disagreements arise when a buyer or seller fails to meet terms such as closing dates, inspections, or payment deadlines. Misunderstandings about contingencies or legal responsibilities can trigger delays or legal action. Reviewing contracts with an attorney helps prevent these disputes before they begin.
Failure to Disclose Property Defects
Sellers are required by law to disclose known defects about the property. When they fail to inform buyers about issues like water damage, pest infestations, or foundation problems, they may face claims of misrepresentation or fraud. These disputes can surface after closing and often result in lawsuits. Full transparency and detailed documentation are essential.
Title and Ownership Problems
Legal challenges often arise from unclear property titles. Liens, boundary disputes, or claims of ownership from third parties can interfere with a sale or create future liability. Buyers should always conduct a title search and obtain title insurance. Legal review of the title report ensures the property is free of unexpected encumbrances.
Escrow and Earnest Money Disputes
When a deal falls apart, disagreements over earnest money deposits are common. Buyers may want a refund, while sellers may claim they’re entitled to keep it. These disputes depend on the language in the contract and the circumstances of the cancellation. Working with a real estate attorney during escrow can ensure deposits are handled legally and fairly.
Boundary and Land Use Conflicts
Property boundaries and land use rights are another common source of legal disputes. These include neighbors building over property lines, easement issues, or zoning conflicts that restrict usage. Even small misunderstandings can lead to lawsuits. A property survey and legal land use review can help prevent these costly conflicts before they begin.
How Von Esch Law Group Can Help
The best way to avoid real estate disputes is to get legal advice early in the process. At Von Esch Law Group, we help buyers, sellers, and investors navigate contracts, resolve disputes, and complete transactions with confidence. Whether you’re concerned about a current deal or planning your next move, our team is here to safeguard your interests and deliver results.