Real estate litigation is necessary when any disputes related to real property arise. It happens between people with a shared interest in a property. People who pursue real estate litigation are typically homeowners, contractors, developers, buyers, sellers, landlords and tenants. They can also involve title insurance companies.
It is a valuable tool that allows affected parties to exercise their legal rights to redress another party’s wrongful or harmful conduct. Buyers can use litigation when people try to exploit them to make more money. Here are reasons a buyer should pursue real estate litigation.
Failure to inform the buyer of property defects
Georgia does not require a seller to accomplish a disclosure form. However, the law states that the seller must disclose material defects to the buyer. They are also legally obligated to answer all the buyer’s questions truthfully and inform the buyer if they know something is wrong. When a seller intentionally attempts to conceal defects, the buyer has the legal right to sue them.
A breach of contract
When you buy or sell real estate, it involves a real estate agreement. The agreement is a legally enforceable contract that outlines the terms and conditions of the relationship between the parties involved. It will include a closing date and title clearance. The contract should also disclose all the assets included in the purchase of the property. If a party fails to fulfill their contract obligations and breaches the agreement, the other has the legal right to sue them.
Breach of fiduciary duty
A real estate agent has a fiduciary duty to their client, meaning they should always act in the client’s best interests. A client will provide financial and private information to the agent, and the agent must keep it all confidential and they should not use the information for their own gain. They should not take bribes from other sellers to influence the client’s decision. They aim to help the client purchase the best property for the best price.
Real estate agents must fully disclose material information that could benefit their clients or put their clients at a disadvantage. Similarly, they must always act in good faith and with due prudence to prevent the client from incurring unnecessary expenses. When a real estate agent puts their interests or that of a third party before their client’s, the client has the legal right to sue them.
The causes of real estate litigation can go far beyond the scope of the examples above. Whenever you have an issue, you should see what you can do to fix it and get compensation if it is applicable to your case.
