Common Real Estate Transaction Disputes Between Buyers and Sellers
Inevitably, disputes will occur between real estate buyers and sellers that end up delaying or ending a transaction altogether. In other cases, disputes occur after the deal is closed.
For the quick negotiation and resolution of these problems, it’s recommended to work with a Fort Lauderdale real estate attorney who can mediate conflicts and offer a solution that both parties will be satisfied with. Here are a few common issues that are encountered:
Sellers must have a clear and marketable title in order to transfer a piece of property to the buyer. During the title search at the end of the transaction, one or more previously undiscovered liens may be found and must be cleared before the deal can be finalized. However, in many cases, title defects will cause the deal to fall through.
In Florida, a real estate attorney can fully handle your title search, often at a similar or lower cost as title companies and usually with a more thorough search.
Material fact disclosure
In Florida, most types of material facts about a property that could affect its value must be disclosed from the seller to the buyer. However, this doesn’t always occur, as many sellers want to keep potential buyers interested in their property or sell it at the highest price possible, even when that price may not be warranted.
Only a few types of material facts are not required to be disclosed under Florida law, including whether or not the property was previously the site of a homicide, suicide or death. However, other problems such as mold, leaking roofs, structural damage, and code violations must be disclosed to the buyer prior to purchase. When they aren’t, disputes inevitably arise.
Breach of contract
If either the seller or the buyer fails to abide by the terms of the purchase agreement or a contingency, a breach of contract occurs. This might happen when the buyer is unable to obtain financing for the property, or if the seller is unable to clear the title.
Ideally there is some form of dispute resolution written into the contract so the parties can attempt to resolve the problem with the help of a real estate attorney in Fort Lauderdale and without resorting to going to court. In many circumstances prior to closing, the agreement will simply be terminated when a breach of contract occurs and the parties will go their separate ways.
If you are currently in the process of negotiating a residential or commercial real estate deal or if you have any questions at all about real estate disputes, call Schecter Law today for a consultation at (954) 779-7009.