What Are Common Real Estate Disputes and How Are They Resolved? A Texas Real Estate Attorney Explains The Essentials

Law Office of Seth K. Bell | The Real Estate Lawyer You Can Rely On in San Antonio, TX

For businesses or homeowners, real estate transactions are complex agreements that generate high expectations for all parties involved. Adding to the complexity are the numerous stakeholders involved in real estate deals, including buyers, sellers, investors, contractors, inspectors, appraisers, real estate agents, mortgage professionals and title/escrow officers.

Because so many parties’ interests are on the line and so much money is at stake, real estate disputes are inevitable. Some issues can be resolved through negotiation, while others require litigation. When conflicts arise, it is essential to understand your legal options and know how to proceed.

Seth K. Bell is a real estate lawyer with more than two decades of experience helping San Antonians and South-Central Texans safeguard their real estate investments and navigate real estate disputes. His additional credentials as a licensed real estate agent and certified mediator make him uniquely qualified to offer innovative and constructive solutions to real estate disputes.

What Types Of Disputes Arise In Real Estate Transactions?

Innumerable real estate disputes can arise between interested parties depending on the types of real estate transactions in dispute. Typical disputes include:

• Ownership and boundary disputes – disputes arising over the title of real estate, use or division of property and its boundaries.
• Failure to disclose disputes – disputes arising from a real estate seller’s misrepresentations or failure to disclose material conditions that adversely affect the property’s value or use as required by law.
• Contractual issues – breach of contract disputes relating to sales agreements, purchase and sales agreements and construction agreements. These disputes can include non-performance, misrepresentations, fraud and improper termination of a real estate contract.
• Landlord-tenant issues – disputes over lease terms, property maintenance (“habitability”), evictions, security deposits and withholding rent.
• Regulatory and zoning disputes – disputes over zoning ordinances, construction permits, building codes or other local regulations. These disputes can involve variances, land use restrictions, historic preservation requirements, and rules created by homeowners’ or property owners’ associations.
• Eminent domain – disputes stemming from government seizure of private property for public use, including valuation disputes, condemnation and public use challenges

How Are Boundary And Property Line Disputes Settled?

In a boundary or property line dispute, either party can request a professional survey of the property based on the property deed. At the same time, an experienced real estate dispute lawyer should also review and scrutinize the property deed and related historical documents for errors or inconsistencies that might resolve the issue.

The findings of the survey and document review may provide enough evidence and clarity for both parties to negotiate and agree upon a common boundary or property. If that’s the case, they would sign a boundary line agreement or easement, and a corrected deed would be filed with the county clerk.

If the parties fail to reach an agreement, mediation of the dispute, where a neutral third party assists both landowners in reaching an agreement, is another alternative. Otherwise, the next step would be to file a quiet title lawsuit, where the court would ultimately declare the boundary location.

Part of that dispute’s resolution may include the judge ordering damages to the rightful owner, removal of any structures that encroach on the property line and correction of the property records.

What Legal Remedies Exist For Breach Of Contract In Real Estate?

Regarding the contact or agreement itself, the court can award such remedies as:

• Specific performance: requiring the breaching party or defendant to fulfil their contractual obligations.
• Rescission: cancellation of the contract as if it never happened, restoring both parties to their pre-contract positions.
• Termination: Ending an existing contract and its future obligations (with the potential for the non-breaching party to recoup “earnest money”).
• Reformation: Rewording of the contract to correct errors or misrepresentations.
• Injunctive relief: stopping the breaching party from performing any action that would violate the contract.
• Mechanic’s liens: a legal claim on the property for unpaid work or materials provided by a contractor or supplier.

A judge might also award the injured party in a breach of contract damages, which can include:

• Compensatory damages: damages in an amount intended to put the non-breaching party in the financial position they would have enjoyed had the contract been fulfilled.
• Consequential damages: reasonably foreseeable damages that stemmed from the breach but were not directly caused by it.
• Liquidated damages: contractually predetermined and agreed-upon damages to be paid in the event of a breach.

What Is The Role Of Mediation And Arbitration In Real Estate Conflicts?

Mediation serves as a voluntary, non-binding means of dispute resolution where a neutral third party, a mediator, works with both parties to achieve a mutually satisfactory outcome. In some cases, it may be ordered by the court or required by contract.

Mediation has been used effectively in many real estate conflicts, including landlord-tenant disputes, contractual disputes between real estate buyers and sellers and homeowner association disputes. Compared to traditional courtroom litigation, it’s confidential, quicker, less expensive and provides participants with more control over the outcome.

Want To Know More About Handling Real Estate Disputes? Contact Seth K. Bell Today.

If your real estate transaction has unexpectedly turned into a battle, you need the guidance of a committed real estate dispute attorney to protect your rights and interests. Call the Law Office of Seth K. Bell at (210) 824-4001 or visit page to schedule a consultation.