Real estate litigation becomes necessary when the parties involved in a property dispute cannot settle their case outside the court. It may arise due to several reasons, including a disagreement over ownership rights or problems that occur after the purchase of a property. The property may have damages that were not revealed, zoning issues, or it may be encroaching on another party. An example is a case where a newly built house obstructs the view of a property or extends beyond the appropriate property line. Any kind of property could be the reason for real estate litigation, be it a house, an empty lot, a road, a business, or even a pond.

Here are some of the most common scenarios under which real estate litigation has to occur

• A Breach of Contract

Real estate transactions are contractual, and when one party breaches the terms of a real estate contract, the other party may seek damages to make up for their losses. For instance, if a tenant does not adhere to the rules outlined in a lease or a home buyer does not pay the agreed-upon price to the seller, it is deemed a breach of contract.

• Real Estate Fraud

In the case where one party intentionally misleads the other during a negotiation for the sake of profiting money or any further gains, it is considered to be real estate fraud. The court judges schemes like property flipping done illegally or predatory lending as fraud cases. Real estate litigation provides justice for the aggrieved party in this case.

• Boundary Disputes

Sometimes, neighbors disagree on property lines. A person may feel their neighbor has gone beyond theirs, which mostly requires real estate litigation. Such cases are even more common when the property lines are not correctly or practically stated. In some cases, they even may be a legally backed boundary that is not acknowledged by one party who believes the practical boundary holds more water over the legal one. In this case, litigation is required.

• Conflicts in Co-ownership

When a property has several owners, they may disagree on a real estate matter; such a case is called a co-owner dispute. If the co-owners cannot reach a joint decision where all parties agree to sell, hold for investment, or renovate the property, a property dispute requiring litigation may develop.

• Specific Performance

In some circumstances, a party to a real estate contract may fail at taking an agreed-upon material action. These cases are called specific performance property disputes. In contrast to other types of breach of contract disputes, the court may order the other party to execute a specific performance to compel them to fulfill their obligations.

Preventing Property Disputes

As with every other thing in this world, prevention is the best line of action in dealing with property disputes. By taking the following steps, you are less likely to get involved in real estate litigation:

• Run a title search before purchasing any property. You should examine and verify the title deed and records from three previous decades, at least.
• Properly check the sale deed as they are vital and must be error-free. To prevent future problems, ensure the dates on the stamp papers and transfer of title documents are accurate and coincide.
• If the property was inherited, obtain proof of the inheritance. In ordinary circumstances, the inheritance proof includes a will, probate, and a letter of administration.
• In a case of co-ownership, ensure that there is a contract that stipulates the right of each party, their obligations, and contingencies for resolving disputes should they arise.
• Do ensure that you obtain any license or approval required for your locality. Renovations may sometimes require licenses, so be sure to get those.

Do you need expert legal representation for your real estate case or need consultation on how to proceed? Our real estate attorneys are available to speak with you; reach out to us here for a consultation.