Every real estate transaction involves contracts, often ones that are long and complex. So it should be no surprise that there is a real possibility of a dispute over the agreement. While arbitration and mediation can be effective in resolving disputes, sometimes litigation is necessary. It can involve the buyer and seller, construction company and contractor, landlords and tenants, as well as realtors, suppliers, architects and others involved. These varying entities all have one thing in common: they are tied to the real property where there is a dispute. The parties may resolve smaller issues by fixing the problem or paying damages, but sometimes these projects can involve millions of dollars in damages.
There could be applicable federal, state or local laws, but federal would take precedence. Common disputes include:
Breach of contract: A developer may argue that a contractor did not meet the terms or conditions of the agreement, or the buyer may claim there is a misrepresentation of the property they bought. Whatever the dispute, the plaintiff believes that the defendant did not honor the agreement, which means they have grounds to pursue damages.
Breach of duty or negligence: This is often a claim against realtors or real estate brokers because the plaintiff believes that the defendant did not perform their fiduciary duty in protecting the plaintiff’s interests. This can involve paying too much for a property or knowingly closing an unfair deal that is more advantageous to the defendant than the plaintiff.
Failure to disclose a defect: Those working on a property or selling are obligated to disclose any defect they are aware of, such as leaking, mold or flooding. It may be a supplier or manufacturer who provides materials or equipment that does perform up to promised standards.
Contracts are an essential part of real estate deals
Disputes involving real estate and damages are quite complex, so it is often necessary to work with attorneys who handle real estate disputes. Whether it is holding the defendant accountable for their actions or seeking damages in court, an attorney can provide invaluable guidance in protecting their client’s interests.