Most Common Reasons for Real Estate Litigation

The American society is among the most legalistic in the world, wherein almost anything can be brought to the courts of justice. In 2019, there were 376,762 civil and criminal cases filed in U.S. District Courts. Out of this number, 286,289 were civil filings and 90,473 were criminal filings.

These cases range from the petty legal disputes to the most grievous offenses. Litigations can involve individuals as well as businesses. In fact, between 36% and 53% of small businesses were involved in some form of lawsuit according to the US Small Businesses Administration.

The real estate industry is not immune to this phenomenon. If you are planning to be part of the market, knowing the laws related to it is vital.

Real estate dealings can become pretty complicated and come with legal risks. A real estate lawyer from Orlando explains that a lot of legal questions might arise from real estate transactions. State and federal real estate and property laws protect the right of every stakeholder – sellers, buyers, real estate agents, land owners, tenants, builders and contractors.

What is real estate or real property law?

Real estate law involves a wide range of legal disciplines relevant to the ownership, purchase and use of real property. This law governs how property can be acquired and what can be done with it. It also defines what is being sold and purchased in terms of titles, condition and boundaries of real property.

A real property refers to any immovable property directly attached to the land. Aside from the land itself, it includes residential and commercial buildings as well as bodies of water. Roads and streets are also considered real property.

In any real estate transaction or litigation, documents, such as contracts, titles, and deeds are essential. They should be well written, accurate, and complete to avoid delays and problems in the sale and transfer of the property. These legally binding documents protect your rights and avoid unwanted litigation.

In general, real estate law is state law because real estate necessarily stays in one location. These state laws regulate all residential and commercial real property dealings as well as tenant-landlord relationships. Meanwhile, federal law does have a role but in a broader sense, such as protection against discrimination in real estate transactions, ensuring environmental protection, and determining the altitudes at which planes may fly over private property. Lastly, there are local laws and regulations concerning the purposes for which a real property may be used.

Real estate law is complemented by other areas of law. Some examples include: contracts are governed by contract law; trespassing can be subject to criminal or civil case; and conjugal ownership of a real estate is under family law. These are just a few legal issues that complicate matters related to real property.

Whether you are a real estate agent, a seller or a buyer, it is fundamental to know these legal issues to protect your rights as well as avoid legal disputes later on.

What is a real estate lawsuit?

Real estate lawsuit is a form of legal action that involves disputes over real property. These cases are threshed out and resolved in court through a process called real estate litigation. Lawsuits can be filed by – or against – real estate sellers and buyers, agents and brokers, and landlords and tenants in order to pursue legal rights and remedy wrongdoings.

Basically, real estate litigations often arise over issues such as mortgage disputes, foreclosure, zoning and land use issues, boundary lines, and property title disputes. Recently, more specific legal questions have become the most common real estate filings, particular example would be lawsuits related to mortgages. These cases are often multi-party, and involve the property owner, mortgage companies, lending institutions, appraisers, and government bodies.

What are the most common causes of real estate litigation?

If property and real estate disputes are not settled amicably outside of court, real estate litigation may be pursued. As defined above, real estate cases involve a piece of land or the property affixed to it. These lawsuits do not include personal property as it falls under civil cases. In majority of real estate litigations, breach of contract related to the purchase, sale or use of the real property is the most common cause of disputes. Specific examples include:

• boundary or property line disputes between neighbors;
• foreclosure related disputes among property owner, mortgage lenders and creditors;
• landlord-tenant disagreements, such as accountability on damages and repairs in a rental space; and
• intentional obstruction of a neighbor’s view or access by erecting structures or via spite fencing.

Other common causes of action in real estate litigation include:

• unauthorized or illegal transfer of land titles;
• breach of contract, especially mortgage or lease contract;
• failure to pay agreed lease or mortgage dues;
• questions regarding property records and land titles;
• illegal use of property or land; and
• disputes with a lender, such as predatory lending practices, foreclosure, discrimination, and mortgage fraud.

For real estate agents and sellers, lawsuits might arise from:

• false information or advertisement about a property;
• breach of contract involving the realtor, seller, buyer, contractor, and even the government;
• failure to disclose a defect or issue with the property;
• breach of duty, usually filed against real estate agents, for not acting in the best interests of the client;
• environmental hazards, such as concealing the presence of asbestos, leaded paint, and contaminated water; and
• breach of implied warranties.

The aforementioned disputes could form the basis of filing a real estate lawsuit but there are many other possible causes of action. Some real estate litigations are complicated, involving various legal issues and aspects. Additionally, each state and city may have unique real estate and property laws and regulations.

As you can see, real estate and property law is complex. There are various reasons why you might find yourself in the midst of real estate litigation.  Working with a trusted attorney can help you carefully evaluate the problem and ensure that your rights are properly protected and represented.

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