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Real Estate Investing Lawsuits

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What Is Real Estate Investing?

Real estate investing refers to the act of purchasing homes for the purpose of gaining some sort of profit from the purchase transaction. In many cases, the buyer may not have the intention of ever living in the home themselves, but may rent it out, make improvements to increase its value, or sell it later on when market conditions will lead to profit.

In this respects, real estate investing is similar to other investments such those involving stocks or securities. Generally speaking, the purchase or property acquisition is motivated more by an increase in profit than actual use of the property for living.

What Are Some Common Types of Real Estate Investing Methods?

There are many ways to invest resources into real estate. These include:

  • Purchasing property through unique sale conditions where the price is marked down,such as through a short sale or through a foreclosure auction
  • Property flipping (i.e., purchasing property and then increasing its value through improvements, then reselling it)
  • Purchasing portions or partial interests of a property
  • Various other methods, some of which require the assistance of a professional

Common Issues Involved in Real Estate Investing Lawsuits

Real estate investments are often the source of legal disputes or conflicts. Some common disputes involve legal issues such as fraud, defective titles, disputes over deeds, boundary disputes, and breaches of contract. These types of disputes often require a legal damages award in order to compensate the non-liable party for losses.

Lastly, some real estate investments are handled through an agent-principal relationship. An example of this is where a trustee handles real estate investments on behalf of another person in a trust fund account arrangement. Here, the trustee may have a legal duty to invest the properly wisely and prudently. If the trustee violates their legal duties and responsibilities, it can lead to legal liability.

Should I Hire a Lawyer for Help with Real Estate Investing Issues?

Real estate investing is a common practice and can often lead to increased income and profits. However, investments can often lead to certain types of legal issues or disputes. You may need to hire a real estate attorney in your area if you need help with any real estate issues. Your attorney can provide you with legal representation and assistance regarding your property. Also, if you need to appear in court for any reason, your lawyer can be on hand to guide you through that process.

Photo of page author Jose Rivera

, LegalMatch Legal Writer

Last Modified: 03-09-2015 02:49 PM PDT

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