Most real estate transactions in California are complex. While you hope every aspect of the transaction will go smoothly, real estate disputes are not uncommon.
There are some common types of real estate disputes that you should be aware of. Knowing these causes of disputes can you help identify them if they arise your transaction and take the appropriate steps for resolution.
Breach of contract
Buying and selling property always involves signing a legally binding contract called the sales agreement. This contract contains all the information and requirements that the buyer and seller must meet for a successfully completed sale.
If one side fails to follow the terms of the agreement, they have breached the contract. The other party could potentially sue for damages.
Duty to disclose defects
Property sellers have a duty to disclose known defects in their properties before the sale goes through. When a buyer discovers a defect after purchasing the property, they could have a claim against the seller for failure to disclose.
The defect must be one that the buyer could not have discovered on their own. The seller must have known or reasonably should have known about the defect and intentionally concealed it from the buyer.
Property line disputes
Property line disputes are common, especially in cities such as San Franscisco with many property lines that may be hard to locate. A property owner may build structures or plant trees that intrude onto a neighbor’s property.
During the real estate transaction process, it is important to know the exact location of the property lines. The time and effort to have a professional survey done prior to completing the sale is worth it.
Breach of duty of care
Real estate agents owe their clients a duty of care. They have a legal duty to act in their clients’ best interests and to keep certain information confidential. When they fail in this duty, they could be sued for negligence.
The duty of care also means they must perform their job to the best of their ability. A mistake by a real estate agent that leads to a client losing money is another common cause of real estate disputes.