One of the many lessons 2020 has taught is to regularly check assumptions. For instance, many people assumed the pandemic would devastate Utah’s housing market. In fact, not long ago the Salt Lake Tribune said “the pandemic has supercharged Utah’s housing market.”
Of course, any assumptions about how long the market will hold that charge should be regularly checked as well.
Disputes that can result in litigation
Regardless of market fluctuations, one of the few constants in real estate transactions is that disputes will arise and that these conflicts can, if left unresolved, evolve into costly, time-consuming litigation. Whether you’re a buyer or a seller of commercial or residential real estate, litigation is one of the last things you want at any stage of a transaction.
Three of the most common types of real estate disputes include the following:
- Breach of contract: A contract to sell a property contains conditions and terms requiring compliance, involving financing, the title, closing date and more. Failure to honor those terms can result in a lawsuit for breach of contract.
- Failure to disclose defects: If there are flaws in a residential or commercial property, they must be disclosed before a sale or lease. Common undisclosed defects include leaks, mold and improvements that aren’t up to code. Failure to disclose the defects can result in a lawsuit before or after closing.
- Boundary disputes: When a property’s practical boundaries are inconsistent with the legal boundaries, owners of adjoining properties can find themselves embroiled in a legal dispute.
Before signing on the dotted line, buyers can avoid the conflicts listed above – and other legal issues – by having an attorney research boundaries, as well as evaluate purchase and lease agreements and assess other areas of possible conflict.