Real estate litigation can quickly become a nightmare. In one particular case in South Florida, $84,000 in attorney fees were awarded. It is a significant investment to buy a property, and when ownership is on the line, people stand to lose big. Hiring a real estate attorney could help you perform the due diligence necessary to avoid some of the most common reasons for litigation over real state.
1. Boundary Disputes
One of the most common reasons for conflict regarding real estate is over boundaries. All too often, the practical boundary line and the legal one are not the same. This can lead to neighbors claiming they own the same strip of land between the two properties. There could be conflicting surveys done that show each neighbor as the owner. Or the surveys could match, but one neighbor is using the other’s property as an easement. This generates a separate use agreement that can change the usage and ownership rights of the land for both parties.
Hiring a real estate attorney can help prevent these issues by doing thorough property research. They can compare the public records filings with the newly done survey and the current practical use of the land. By resolving these discrepancies before completing a contract for sale, you could avoid potential conflicts later on.
2. Public Records Errors
Public records are what people search to determine the rightful owner of a piece of property. A typo can cause chaos with this system and have devastating consequences for the individual claiming ownership. While it is possible to resolve these issues, the majority of people don’t find out about them until it’s a dire situation. Going through the correction process creates a strain emotionally and financially.
Working with a real estate attorney can help reduce the risk of clerical errors in your filing of documents. A quality lawyer will check and double-check the documents to ensure all of the information is correct.
3. Title Disputes
Thorough research is required to ensure that the claimed seller of a property is the sole and rightful owner. In a worst-case scenario, a third party can successfully argue in front of a judge that they have a claim to the property. This can leave the new buyer with a financial loss and no property.
A real estate attorney can provide the research necessary to ensure that you have a complete picture of the property’s ownership history. This reduces the risk of an unknown third party making an ownership claim.
4. Property Liens
Most people are aware that a mortgage company has an ownership claim on the property. However, other encumbrances can hinder a property. Real estate could have a property lien placed on it for an unpaid contractor, delinquent taxes, or another debt. The problem with these liens is that they follow the property, not the debtor. As the new owner, you won’t have a clear title until those debts are paid. These debts are even more common when the real estate was foreclosed on.
Your real estate attorney will assist in identifying and negotiating a resolution of these debts. This ensures you purchase the title free and clear of all debts.
5. Construction Conflicts
If you plan to develop a property, you will likely have a contractor to perform the work. That contractor will hire subcontractors to perform specific duties during the construction project. As a result, disputes can arise between the property owner and the contractor or subcontractor. Or disputes can arise between the contractor and subcontractor. Any one of these could delay your project and result in a loss for the property owner.
Partnering with a real estate attorney means there is someone looking out for the property owner’s best interest. Have any contractual real estate agreement reviewed by a lawyer. This ensures you understand the individual terms, the property owner’s duties, and the contractor’s duties.
Hire a Real Estate Attorney
Working with a real estate attorney from day one could help avoid litigation nightmares later on. As you can see with many of these litigation causes, diligent research and attention to details early on can save time, money, and frustration later.
Request a consultation today, and one of our skilled attorneys will be happy to discuss your real estate plans.
