Real estate contracts outline the terms of a property transaction, but disputes can arise when one party fails to meet obligations. In Georgia, state laws govern these agreements, protecting both buyers and sellers. Understanding common disputes can help you avoid legal conflicts and protect your investment.
Breach of contract
A breach occurs when one party does not fulfill contractual obligations. This can involve failing to pay on time, not delivering a clear title, or neglecting agreed-upon repairs. The non-breaching party may seek damages or force contract completion through legal action.
Misrepresentation or fraud
Sellers must disclose known defects that impact property value. Misrepresentation happens when false statements or omissions influence a purchase decision. Georgia law allows buyers to seek rescission or damages if they can prove intentional deception.
Failure to disclose property defects
Georgia follows a “buyer beware” approach, meaning sellers are not required to disclose all defects unless specifically asked. However, if a seller intentionally hides major issues, they could face legal consequences. Buyers can pursue claims if they uncover undisclosed defects after closing.
Earnest money disputes
Earnest money deposits show a buyer’s commitment, but disagreements arise when a deal falls through. If the contract specifies conditions for refunding the deposit, courts will enforce those terms. Disputes often occur over whether a buyer rightfully withdrew from the contract.
Title defects and ownership claims
Title issues can derail property transactions. Unpaid liens, unresolved ownership claims, or errors in public records can lead to disputes. Title insurance helps protect buyers, but if problems arise, legal action may be necessary to resolve ownership conflicts.
Contract ambiguity
Vague terms in a contract can cause disputes between buyers and sellers. A poorly written agreement may not clearly define responsibilities, deadlines, or contingencies. Courts typically interpret unclear language against the party that drafted the contract, emphasizing the importance of precise wording.
Real estate disputes can lead to costly legal battles. Knowing common issues can help you prepare for potential challenges and ensure a smoother transaction.
