Real Estate Litigation Issues

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 What Does Litigation Mean In Real Estate?

Real estate litigation can involve a wide range of legal issues and conflicts. This is due to the fact that real estate transactions are complex interactions involving numerous laws, legal rights, and policies.

Real estate lawsuits seek to resolve legal disputes through the use of court procedures and mechanisms. A typical real estate lawsuit will conclude with one party receiving a monetary award from another.

Real estate litigation can entail any type of dispute involving real property. These cases are frequently filed in connection with loan foreclosure, establishing property ownership and boundary lines, and zoning and land use disputes.

Many lawsuits can arise from landlord-tenant relationships, including unlawful detainer actions in which a landlord seeks to evict a tenant from a property controlled by the landlord.

Specific legal issues have recently become the subject of real estate cases. Subprime mortgages and junior mortgages are two examples.

The following parties may be involved in lawsuits involving subprime loans and repossessed mortgage loans:

  1. A borrower (in a mortgage loan deal, the homeowner is usually the borrower);
  2. The mortgage lending corporation, sometimes known as the lender;
  3. Other lenders, which could be banks or private individuals;
  4. Mortgage lenders who offer second or third mortgages; and
  5. Appraisers who estimate the value of real estate, frequently for mortgage lenders

It is vital to clarify that real property refers to land and any constructions that are immediately related to the land. This comprises single-family homes, condominiums, apartments,
commercial, industrial, and agricultural land and buildings.

The real estate contract is one of the main points of contention in real estate litigation. This contract governs the various terms and conditions of the property sale and title transfer. This should be written clearly to avoid legal disputes.

What Are Some Common Real Estate Litigation Issues?

Aside from contract disputes, some common real estate law issues are:

Foreclosure is by far one of the most litigated issues. In many real estate litigation cases, whether or not a house should be foreclosed on is debatable. As a result, it may be necessary to file a lawsuit to determine whether foreclosure should be stopped or allowed to proceed.

An individual can purchase and sell a home on their own. However, it is usually carried out with the assistance of an expert broker or agent.

Although using a broker can make selling a person’s house considerably easier, it also necessitates signing into contracts and paying commissions. If a person decides to sell their home through an agent, a real estate lawyer can evaluate their contract with the agency before they sign it.

An attorney can also provide vital information about issues related to the sale and purchase of real estate, such as real estate taxes, housing discrimination, and the law of eminent domain.

Furthermore, some homes may be located in common interest communities. These communities are often built by a single developer, have a governing body or association, and have specified property use laws.

There are various crucial phrases and ideas that an individual should be aware of when buying or selling property, including:

  • Brokers: Buying and selling real estate is normally done through an agent known as a real estate broker. Brokers either assist individuals in finding a property to acquire or owners in selling their property. Brokers also handle all of the paperwork associated with real estate sales.
  • Disclosures: If a person is selling their home, they must disclose any property flaws that they are aware of, which could include structural or electrical issues. This obligation to disclose is referred to as the disclosure of material faults, or simply disclosure
  • Buyer’s responsibilities: Typically, a potential buyer has the right to view the property prior to closing for any potential flaws or zoning difficulties. A buyer should also examine to discover if the property is subject to any mortgages or liens. This information is available to buyers at their local county recorder’s office.

If a person is renting a property, it is critical to understand the duties that a landlord owes their tenant under landlord-tenant law, which include:

  • Habitability: This indicates that a landlord assures that the property is habitable or livable, also known as the implicit warranty of habitability and that they maintain the property on a regular basis. Part of this role entails repairing any difficulties that may emerge, such as heating or plumbing concerns.
  • Ordinances: A landlord ensures that the property complies with both local and state laws.
  • Duty to deliver possession: Although law varies by jurisdiction, landlords generally have a duty to deliver possession of the premises to a tenant, such as delivering the renter keys and ensuring that no one else dwells in the dwelling unit. and
  • Implied covenant of quiet enjoyment: This relates to a tenant’s entitlement to have a landlord not interfere with their use of the premises, such as by rendering the property unusable or unlawfully evicting a tenant.

It is crucial to highlight that tenants have their own responsibilities when renting property, which includes:

  • Paying rent on time and in accordance with their lease terms;
  • Following any lease-specific conditions or restrictions, such as no dogs or loud noises;
  • Not using the premises for an illegal purpose, such as drug dealing or gambling in places where such activities are prohibited; and
  • Making routine repairs and upkeep on the property, such as avoiding vandalizing the flat and notifying the landlord if there is a plumbing problem, etc.

If a tenant fails to follow the conditions of the lease, the individual will be in breach of the lease and may face the following consequences:

  • They may lose their security deposit, be subjected to additional monetary damages, and may even face eviction.

In a civil real estate action, remedies are the redress sought by a person, people, group, or organization.

In such cases, a court may impose a remedy in order to enforce rights that have been violated.

Courts often impose legal remedies to place the non-breaching party in the same situation as if the parties’ agreement had truly transpired.

A common example of a legal remedy in real estate lawsuits is monetary relief. Parties who violate an agreement may be required to pay a monetary penalty issued by a court to compensate the non-breaching party for their losses and/or to penalize the breaching party.

A judge may decide that a legal remedy is not the appropriate answer in some cases involving real estate lawsuits, which are often breach of contract matters. A judge may instead impose an equitable remedy to resolve the real estate lawsuit.

The core concept of equitable remedies is fairness. Specific performance, restitution, and injunctions are examples of equitable remedies.

What Is a Frivolous Real Estate Litigation Issue?

A frivolous real estate claim, also known as a bad faith claim, is a lawsuit, motion, or appeal intended to harass, delay, or embarrass the opposing party.

A claim is frivolous if it lacks any arguable legal or factual basis.

Do I Need a Lawyer for Assistance with a Real Estate Litigation Issue?

Real estate claims can occasionally involve extremely complex legal concerns. Real estate litigation is best handled by a knowledgeable and experienced property lawyer.

If you need assistance filing a claim or during the litigation process, you may need to engage an attorney in your region.


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