Real Estate has become a large business that comprises many laws to follow. It deals with broad issues like boundary disputes, ownership and transaction disagreements, purchasing, selling properties and lot more is included.
Typically it focuses on buying and selling, also the arguments between proprietors and residents. Because of which sometimes, a civil lawsuit takes place between the two parties. This lawsuit is called litigation.
Most of the times, the conflict is settled through the steps like pleading, discovery trials, appeal, and negotiation. However, if not from these, the case goes for the trial and seek the help of litigation law firm. There are many reasons why real estate litigation occurs.
Below are five reasons you should know.
The issue of land acquisition is gradually arising with the time. There have been numerous cases related to it that often creates hurdles in the relation of the two parties.
Sometimes, the landlords ask for more compensation with the tenants. Hence the situation gets adversely affected which results in the real estate litigation and the buyers have to wait until everything settles.
Failure to Disclose the Defects and Problems
During the discussion regarding the property normally it happens that the problems were not disclosed to the buyers. The trouble could be of anything like the unpaid taxes and bills concerning the property.
Defects comprise poor constructions, cracks in the ceiling, leaks, prohibited additions, improvement etc. If the seller or the agent is aware of the defect and did not reveal during contracts, legal action that is litigation takes place against them.
In some serious cases, it happens that the legal documents are not given. These legal documents determine whether there have been any legal activities been violated.
Every now and then the real estate sector faces fraud issues. Due to the absence of a higher authority in this field, plenty of fraud players have entered into the business.
These fraudsters cheat on the investors buying a new house. As a result, lots of false promises are given to them. The responsibility of the buyer is to thoroughly check the owner’s qualifications, reputation in the market, and track records cautiously.
Many times the small builders have apartments that they sold it to the multiple buyers.
Infringement of Contract
When you are purchasing or selling the home, there comes a contract along with it. In this contract, all the terms and conditions regarding the property are mentioned.
The terms can cover many things like clearance, financing terms, closing date, items included in the home purchase and many other crucial details. If failed to meet all the terms in the agreement, litigation is put forward on the base of infringement of contract.
Delay in the Possession
In the current scenario, before constructing a project different kind of approvals are needed. Like environmental clearance and non-agricultural permits.
Besides approvals, the project comes to the halt due to the scarcity of the funds from the builder’s side. This leads to postponing the authority to the buyer. They also face the burden of EMI and monthly rents.
In the worst cases, for a prolonged period of time, the construction project doesn’t begin. During this time, a legal petition of delay in the possession is called for against the holder.
Pro-tip: How to protect yourself from Real Estate Litigation occurrence?
- The best way to save yourself from the real estate litigation is to maintain all the documents of buying and selling.
- Keep a copy of all the signatures in a safe place.
- All these documentations will be in your defense proof in case you are sued.
July 27, 2018