7 Common Causes of Real Estate Litigation: How to Protect Your Investment


Investing in real estate can be a truly rewarding venture, but it’s crucial to remember that it comes with its fair share of risks. If you’re a property owner or buyer in the US, being fully aware of the potential challenges that might crop up during real estate transactions is essential.

One of the biggest concerns you may encounter is real estate litigation. This legal process kicks in when disputes or conflicts arise in property-related matters. Dealing with real estate disputes can be costly and emotionally draining. However, a real estate litigation lawyer can help you protect your investment and reduce risk.

What is Real Estate Litigation?

Real estate litigation is a complex area of law that deals with legal disputes concerning property transactions. It covers various issues, such as breach of contract, property disputes, non-disclosure or misrepresentation, construction defects, landlord-tenant disputes, zoning and land use problems, and foreclosure and loan disputes. When faced with these challenges, individuals and businesses may find themselves engaged in legal battles that require the expertise of skilled real estate litigators.

The impact of real estate litigation cannot be underestimated, as it can significantly affect your estate planning, financial standing and overall real estate investment strategy. Therefore, thoroughly understanding the potential causes of such litigation and how to safeguard yourself from them is crucial.

In 2023, real estate litigators will continue to play a pivotal role in assisting clients in navigating these legal complexities and ensuring their interests are well-protected throughout the process.

Real Estate Litigation

7 Common Causes of Real Estate Litigation

Breach of Contract

One of the key triggers for real estate litigation is a breach of contract, a situation where one party fails to uphold their responsibilities as specified in the agreement. For instance, if a buyer doesn’t make the agreed-upon payment within the set timeframe or a seller doesn’t deliver the property as promised, it constitutes a breach of contract. Dealing with such breaches can have serious consequences, resulting in financial losses and even legal proceedings.

Creating well-crafted and comprehensive contracts is essential to shield yourself from contract-related disputes. Seeking guidance from a real estate attorney can ensure that the terms are legally binding and that the rights and responsibilities of all parties are clearly defined. A properly drafted contract goes a long way in preventing misunderstandings and significantly reducing the likelihood of disputes arising.

Incorporating the expertise of a reputable law firm and a skilled real estate attorney can be invaluable in navigating the complexities of real estate transactions and safeguarding your interests.

Property Disputes

Real estate litigation often arises due to property disputes, which are quite common in the industry. These disputes can revolve around issues like boundary disagreements, disputes over easements, or conflicts concerning property rights. When there’s uncertainty or disagreement about property lines, it can lead to prolonged and costly legal battles.

To steer clear of such property-related disputes, it’s crucial to do your homework thoroughly before buying any property. One way to do this is by enlisting the help of a qualified real estate agent and conducting a comprehensive property survey and title search. This way, you can verify the exact boundaries and ownership rights of the property, significantly reducing the risk of potential disputes down the road.

Non-Disclosure or Misrepresentation

Non-disclosure or misrepresentation occurs when a seller doesn’t provide the buyer with important information about the property. It can involve hiding known defects, property damages, or other crucial details that could influence the buyer’s decision. When buyers discover these undisclosed issues after the purchase, they may feel deceived and take legal action against the seller.

As a buyer, it’s vital to be diligent and hire property inspectors to uncover potential problems before finalizing the deal. On the other hand, sellers should act in good faith and honestly disclose any information that could affect the buyer’s decision. Both parties can prevent disputes arising from non-disclosure or misrepresentation by being transparent and forthright.

Construction Defects

Construction defects are problems that crop up due to shoddy workmanship or subpar materials used to construct a property. These issues can vary from structural faults to water leaks, electrical problems, or mold infestations. Buyers or property owners might pursue legal action against the construction company or builder when encountering such defects.

To safeguard yourself from potential construction defect-related disputes, conducting a thorough inspection of the property before purchasing is crucial. It’s advisable to hire reliable contractors for any renovation or construction work and obtain warranties for the completed tasks.

Moreover, seeking the expertise of clients’ trial lawyers and having a real estate attorney review the construction contract can offer you additional protection and peace of mind. By taking these steps, you can significantly reduce the risk of encountering construction-related issues in the future.

Landlord-Tenant Disputes

For landlords and tenants alike, disputes can often arise over various issues, such as lease agreements, property maintenance, security deposits, or evictions. These conflicts can escalate into legal battles, consuming both time and resources.

To prevent landlord-tenant disputes, it’s crucial to have a well-drafted lease agreement that clearly outlines the rights and responsibilities of both parties. Adhere to local rental laws and maintain open and clear communication with your tenant to address any issues promptly.

Zoning and Land Use Issues

Zoning and land use regulations are crucial in real estate development projects. It’s essential to obtain the required permits and approvals while adhering to zoning restrictions; otherwise, you may face legal complications and project delays.

It’s wise to consult an eminent domain lawyer before embarking on any real estate project to avoid such issues. They can provide valuable insights into local zoning regulations and ensure your compliance. With their expertise guiding you through the complexities of zoning and land use laws, the risk of litigation is significantly reduced.

Foreclosure and Loan Disputes

Foreclosure occurs when a borrower fails to repay their mortgage, leading to the lender taking possession of the property. This process can involve complex legal issues and potential disputes.

If you face foreclosure or loan disputes, seeking legal counsel from a real estate litigation attorney is essential. They can help you explore options like loan modification or debt negotiation and guide you through foreclosure.

How to Protect Your Investment According to a Real Estate Attorney

Conduct Thorough Due Diligence

Before making any real estate transaction, conduct thorough due diligence. It includes researching the property’s history, obtaining comprehensive property surveys and title searches, and seeking the guidance of real estate professionals. Being well-informed can help you make sound investment decisions and avoid potential disputes.

Work with Real Estate Professionals

Engage with reputable real estate agents and brokers who have a proven track record in the industry. Their expertise can help you navigate the complexities of real estate transactions and protect your interests throughout the process.

Invest in Title Insurance

Title insurance is a crucial safeguard against potential property defects and title disputes. Investing in title insurance can provide you with peace of mind and financial protection in case any title-related issues arise in the future.

Draft Clear and Comprehensive Contracts

Ensure that all real estate contracts are well-drafted and legally binding. Consult with a real estate attorney to review the terms and conditions and include all essential details in the contract to prevent misunderstandings and disputes.

Stay Updated on Real Estate Laws and Regulations

Real estate laws and regulations can change over time. Stay informed about the latest developments and consult reliable resources to ensure compliance with all legal requirements.


Real estate litigation poses a considerable concern for property owners and buyers in the US. However, there are proactive measures you can take to protect your investment and reduce the risk of disputes, ensuring the safety of your assets. Key steps involve:

  • Conducting thorough due diligence.
  • Collaborating with experienced real estate professionals.
  • Obtaining title insurance.
  • Creating clear and comprehensive contracts.
  • Staying informed about real estate laws.

These essential precautions allow you to embark on a successful and hassle-free real estate investment journey. Always remember prevention is better than cure, and preparedness can spare you from the challenges of real estate litigation.

About the Author:

Jeannie Williams is the Content Marketing of We Write Best, a content writing service provider of top quality articles that help drive business to your marketing and SEO efforts. Aside from her passion in writing to different industry, she loves to do baking and dancing.

joy reid's house

Joy Reid’s House in Florida: A Glimpse into the World of the Renowned TV Host

Home Interior

Unleashing the Hidden Potential of Your Home with These Simple Upgrades