In our litigious society, people can sue over just about anything. In real estate matters, however, there are generally 3 common reasons that people find themselves tangled up in a lawsuit.
Common Reasons for Real Estate Litigation
1. Disclosure Problems
An area of real estate that often leads to disputes and litigation is the failure to disclose defects of the property. Although Georgia’s disclosure laws are not as stringent as some other states, when it comes to residential real property purchase and sales, a property owner has an obligation to disclose any material defects of the property.
Disclosures serve to protect potential buyers from buying property that has unknown material or latent defects. A latent defect is one which the buyer could not discover by a reasonable inspection of the property. A material defect is one which would, if the buyer knew about it, make a difference to whether or not he would buy or the price he would pay.
Sometimes sellers do not disclose the property’s defects in order to get a higher price for the property. But when a buyer discovers a material defect or is injured because of an undisclosed latent defect, litigation can follow.
2. Breach of Real Estate Contract
Another common area of real estate disputes is real estate contracts. There are many types of real estate breach of contract cases that could lead to litigation, but many concern the purchase and sale of real property. Real estate contracts can be very long and complicated. They will often contain a number of contingencies and terms that are material to the agreement, which, if breached, can lead to a dispute between the parties.
A contract can be breached in many ways, but some of the more common problems include failing to close on time or failing to convey a deed as agreed upon.
3. Real Estate Agent Breach of Duty
Litigation can also arise around a real estate agent’s performance in the transaction. Real estate agents have affirmative duties and legal obligations to act in the best interest of their clients. Disputes frequently arise around whether or not a real estate agent has breached those duties and/or has earned his/her commission.
We Know Georgia Real Estate Law
If you have real estate problems, we can help. We are experienced real estate attorneys in Georgia. Our practice focuses only on real estate issues and litigation; which means we practice in one area of law, and we do it extremely well. To schedule your free phone consultation, call us at: 770-888-7707.