Not all real estate deals go off without a hitch. Fortunately for those involved, there’s a sound legal process to follow to ensure the right people are held to account so that such situations can be resolved.
Real estate litigation describes a legal process for resolving real estate-related disputes involving buildings and land. Litigation through the court system is common when two or more parties can’t resolve their differences through negotiations. Multiple forms of real estate litigation exist, such as disputes over contracts, boundaries, titles, and more. Keep reading to learn the most common causes of real estate litigation below:
Breach of Contract
Many property buyers and sellers contact a Toronto real estate litigation attorney or an attorney in their own area when they believe someone in their real estate agreement is in breach of contract. For example, they might have failed to meet contractual obligations, such as closing on a property on a specific date.
Sometimes, buyers seek legal advice or proceed with litigation for a breach of contract because a seller failed to disclose defects they knew about, such as structural problems and non-obvious issues. A breach of contract can also be as straightforward as not meeting a deadline or specific terms outlined in a purchase or lease agreement.
Disputes Over Boundary Lines
Mistakes happen. Sometimes, public records can be incorrect, or surveys can be inaccurate. In either instance, this can result in real estate litigation over boundary lines. These issues can arise when neighbors disagree over the precise location of property lines, or there are ownership disputes over shared features like fences and driveways.
Title Problems
Taking ownership of a property isn’t always straightforward. Sometimes, property owners encounter issues relating to titles. For example, there might be undisclosed liens on a property, or even a claim of ownership from an heir. In rare cases, title issues can arise through public record errors or fraudulent documents in the chain of ownership.
Landlord vs. Tenant Dispute
Some people purchase residential properties to rent them out and collect regular income. However, relationships between tenants and landlords can sometimes sour. A landlord might seek legal help when their tenant hasn’t been paying rent, has breached their lease terms, or there have been disagreements over repairs or maintenance. They might also start litigation proceedings if they believe a property has been improperly used, or they want to start eviction proceedings.
Defects in Construction
Property investors regularly buy and develop land to turn a profit. They expect that the building companies they hire to do the job will do it to a high standard to benefit them and the people who buy the resultant properties in the future. Sadly, that doesn’t always happen.
Real estate investors can file lawsuits against builders and contractors for construction defects relating to substandard materials, failure to follow building codes, and poor workmanship, just to name a few. These can present as foundation cracks, water damage, leaks, and even mold. Some forms of real estate litigation also come about when there are delays in completing a construction project, causing significant financial losses.
Not all real estate deals go off without a hitch. Fortunately for those involved, there’s a sound legal process to follow to ensure the right people are held to account so that such situations can be resolved.
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