Real Estate Litigation Law: What You Need To Know
Litigation can be a challenging process for anyone of any field, and in the real estate market this is no exception. Real estate litigation can occur at literally any phase in property ownership from the developing, to the owning, and to lending. Each phase can have its own unique situations that one must be aware of, and with the proper solutions for correction. In most cases the dispute can be reduced to the issue of property rights or lack of property rights, creating the need for litigation attorneys.
In the development stage, real estate litigation is a possibility. The first stage can occur in the initial agreement or contract for development. The responsibility of the developer and what and when something will be developed. The contractors involved create multi layers of professional relationship with each specialty like the plumber or electrician while working within the same zones. Local authorities are a factor with real estate zoning laws and building permits. All of this can contribute to cost going over budget or other errors.
Property owners have a chance of entering litigation as well. After the property has been built there is ongoing responsibilities of the owner. If the owner chooses to rent out the property finding the proper tenant and receiving payment is not always simple. Damage often can occur in real estate from serious issues like weakness in the foundation to simple household repairs. In the commercial and residential realm, there are responsibilities that must clearly be outlined and risk that must be eliminated.
The real estate lender or mortgage holder can also be at risk for litigation. Multiple problems can arrive for lenders involved in the real estate market. Litigations can arise with the borrower over loan duration and interest rates. Default is also a risk for lenders because the result is a loss of the potential interest and opportunity costs. Furthermore, liens on properties can be a common reason for litigation.
In all the above scenarios, there is one common factor which can be noticed. Nearly every reason for real estate litigation is caused by poorly defined property rights. For developers, it is often difficult to define the job description of each contractor and worker, and the city zoning and permits can often be dynamic. The Owner and renter situation also have overlapping responsibilities dealing with the property. And finally, lenders and borrowers too have lack of proper market information to protect themselves over the property or loan amount at stake. The solution can be to have better contracts with clear and concise roles responsibilities and language. However, this too can lead to extremely complicated contracts and agreements that are lengthy and therefor difficult to understand. Therefore, a proper real estate litigation attorney must be experienced and educated to navigate the relevant factors.
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