Primary Reasons For Real Estate Litigation

In order to protect legal rights and make amends for perceived or actual wrongs, real estate litigation is used by and against real estate agents, brokers, buyers, and sellers, as well as landlords and tenants. Here are the three most frequent issues in the real estate market that lead to legal action.

Non-Disclosure of Property Defects

Any defects in the property that are not readily apparent but that the seller is aware of must be disclosed by law. A buyer can sue the seller for "failure to disclose" if, after closing, the buyer learns of a defect that the seller failed to mention. However, the plaintiff in such a case holds the burden of proving that the defendant constructively knew about the defect and hid it on purpose.

Breach of Duty or Negligence

Under applicable law, real estate agents and brokers have a fiduciary responsibility to put their client's interests ahead of their own or any other party's. Furthermore, they are obligated to protect the privacy of their client's personal and financial information. Likewise, they must tell the client about anything that could be useful to them. It is expected that an agent will carry out their duties to the best of their abilities. A real estate agent's clients may have grounds for legal action if they suffer losses or other harm because of the agent's recklessness in any of the areas mentioned.

Breach of Contract

The party who has been wronged, the plaintiff, must demonstrate that they have complied with their contractual obligations, while the defendant has not, to establish a breach of contract. If the plaintiff prevails, they are entitled to damages for any liabilities they may have incurred due to the contract breach. It's generally a good idea to have an experienced real estate litigation lawyer review the agreement and explain any of its clauses to ensure you don't unintentionally violate any of its terms.