The 3 Most Common Reasons That Real Estate Litigation Happens

At one point or another, a significant number of real estate agents, property sellers, home buyers, brokers, and/or landlords will find themselves faced with a litigation dispute. An attorney understands the nuances associated with litigation and will do what is in their power to ensure that a resolution is found. Here are the three most common ways that real estate litigation arises:

Breach of Contract

A breach of contract is the leading reason why people go through real estate litigation. During a real estate deal, the contract terms may list details regarding the closing date, title clearance, assets, and more. When a lawsuit is filed, the plaintiff has to show how they have abided by their contractual duties, while the defendant has failed to reciprocate. The plaintiff may be entitled to receive compensation for the damages and losses they endured because of the breach of contract.

An attorney recommends having a member of our team look over contractual agreements before signing. We can review the contract terms to ensure that your rights are protected, the deal is in your best interest, and clauses can be clarified if needed. 

Negligence (Breach of Duty)

A real estate agent may get sued if the buyer feels like they failed to inform them of everything they need to know in order to make a reasonable decision about whether the purchase is right for them. Realtors and agents are obligated by law to act in the interest of their clients, and not themselves or another party. But, most real estate agents don’t get paid until they sell a house, so they may put pressure on the buyer or hide details so the transaction doesn’t fall through. A real estate agent must disclose any information that would benefit the client.

If you feel like your agent was sneaky and kept pertinent facts about the property from you, then please reach out to an attorney immediately so we can advise what to do next.

Failing to Inform About Property Defects

As stated in the previous paragraph, the buyer must receive everything there is to know, both good and bad, about the property. But, a real estate agent may be aware of loopholes that could prevent them from having to disclose property defects. 

For example, there may be state laws that only require the real estate agent to share certain property defects, but not them all. An attorney can talk with you about the laws for your state and whether there could be facts about the property that your agent doesn’t have to tell you about. If the buyer later discovers an undisclosed defect that he or she had the right to know, legal action may be taken towards the seller, stating that they had failed to disclose and that it was purposefully concealed for their benefit in the sale. 

If you feel like something just isn’t right about a current property transaction, halt, and call us right now. A real estate attorney in Melbourne, FL can try to prevent a litigation dispute for you in the future by identifying potential risks and flaws that you may have not considered. 



Thanks to Arcadier, Biggie & Wood, PLLC for their insight into real estate law.