4 Reasons Real Estate Disputes Occur and How to Avoid Them…
In your adult life, one of the most expensive transactions you will make is buying or selling a home. With a large amount of money on the table, added with a degree of emotional attachment, disputes are destined to occur. Most of these issues can be solved without much hassle, others are more serious and may result in an expensive litigation. However when you are ready to purchase or sell a property, you won’t want to sit around and wait for the courts to come to a resolution. So what can you do? Hire a real estate dispute lawyer. A real estate attorney will review any contracts and represent you in your transaction so you can be sure that your rights are being upheld and to help you avoid those dreaded, unnecessary real estate disputes.
4 Of The Most Common Real Estate Disputes in Florida…
Failure to Disclose Property Defects
During residential real estate transactions, sellers are required by law to disclose any existing property defects to the buyer. Should a seller withhold this information, they will be held liable should the buyer discover the latent or hidden defect in the property that the seller knew of but did not disclose prior to closing the deal.
Breach of Contract
A purchase or sales agreement is a legal contract between a buyer and seller for the purchase of a real estate property. Each party should hire a Florida real estate attorney to help them write up their purchase or sales agreement that properly addresses their specific needs and expectations. Your purchase or sales agreement should outline the responsibilities for both the buyer and seller to ensure that all parties are aware of such expectations. Should either party fail to follow through with their duties, it will constitute a breach of contract meaning a dispute will quickly follow.
It is common for disputes to arise regarding the earnest money deposit which was paid as a portion of the initial offer to purchase the particular real estate property. In the event that the real estate transaction were to fall through, or the contract is defaulted on, the parties might argue about who should keep the earnest money. To avoid a dispute on the deposit, a purchase agreement should clearly state who will keep the deposit if either situation were to occur.
Most buyers hire an inspector to do an inspection prior to buying a real estate property. If during this inspection, a buyer discovers any faults with the property, the buyer can request that the seller make any necessary repairs before the transaction is completed. In some instances, the purchase or sales agreement might require that the seller make any repairs found in an inspection, but this will not always be the case and could have to be negotiated for by an agent.
It is much better to avoid real estate disputes all together than to figure out how to resolve them. This will help you avoid unnecessary, exerting battles from the get-go. Here are a few tips to avoid disputes during the purchase or sell of your home.
Hire an Attorney to Look Over Your Purchase or Sales Agreement
Employ a real estate attorney to review your contract. One that is well-drafted poses minimal risk for disagreements. Your attorney will be able to make sure that all terms listed in the agreement are fair and that you are well aware of any obligations you are responsible for per the agreement.
Include Arbitration & Mediation Clauses
We touched on this earlier, but to reiterate, litigation can be quite time consuming and expensive. If you are in a hurry to buy or sell the property, you do not want to face litigation. An arbitration or a mediation clause is one option to consider if both parties are hoping to come to a resolution outside of a courtroom. In both situations, the parties can resolve the dispute quickly to keep the process moving forward without much of a delay.
Specify Contingencies in Your Contract
Buyers and sellers should both have written up contingencies to protect them should something go wrong during the process. A contingency in a contract will allow each party the option to terminate the contract should there be an occurrence or non-occurrence in a particular event. One example of this is a contingency will permit a buyer to terminate the contract if they are unable to get approved for financing.
Get a Home Inspection
Prior to purchasing a home in Florida, hire a licensed and trustworthy home inspector to look over the home and ensure that it is in great condition.
About Estevez Law Group, P.A.
Helping clients with real estate, commercial real estate transactions, residential property purchases and sales, estate planning, and more! Skillful legal representation can simplify complex real estate transactions and solve problems that frustrate all parties involved. At the Estevez Law Group, P.A. our boutique real estate law firm and title agency assists clients with all types of residential and commercial property matters.
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