Getting involved in real estate, whether it's buying your dream home, investing in a rental property, or managing an apartment complex, is a big step. While it can be incredibly rewarding, the road isn’t always smooth. In 2024, we’re expecting to see a rise in real estate disputes—thanks to soaring property prices, complex legal agreements, and shifting laws. In this post, we’ll break down the most common real estate issues people face and how these problems are typically resolved.

1. Contract Disputes

When it comes to real estate, everything revolves around contracts. Unfortunately, contract disputes are among the most common legal battles. These can include:

• Breach of contract: This occurs when one party doesn’t fulfill their obligations—maybe the seller doesn’t transfer the property on time, or the buyer fails to pay as agreed.

• Missed contingencies: Real estate contracts often have conditions—like securing financing or passing an inspection—that need to be met. If these fall through, so can the deal.

• Fraud or misrepresentation: Imagine buying a house only to find out the seller didn’t disclose serious problems, like a faulty foundation or water damage. That’s fraud.

Recent Example

In a recent California case, a homebuyer sued the seller after discovering the house had major foundation issues that weren’t disclosed. The court ruled in favor of the buyer, awarding compensation to cover the repair costs—showing just how seriously courts take these matters.

How It’s Usually Resolved

Many contract disputes are settled outside of court through mediation or arbitration, which is faster and less expensive. If that fails, it can head to court, where the exact wording of the contract is scrutinized to determine who’s at fault.

2. Boundary Disputes

Disagreements over property lines are more common than you might think. These disputes usually arise when:

• Survey results are unclear or outdated: You think you own up to a certain point, but a new survey says otherwise.

• Fencing or structures encroach: You put up a fence or plant a tree, only to find out it’s partially on your neighbor’s land.

Recent Example

In Texas, a dispute over a shared driveway became a full-blown legal battle. One family had been using the driveway for years, while the neighbor claimed it was theirs. The court ruled in favor of the family using the driveway under adverse possession—a law that says if you use someone else's property openly for a long time (usually 10+ years), you may be able to claim ownership.

How It’s Usually Resolved

Boundary disputes can often be solved with surveys and title searches. When that doesn’t work, it’s off to court, where historical property records, maps, and witness testimony play a key role.

3. Landlord-Tenant Conflicts

If you’re a landlord or a tenant, chances are you’ve encountered a conflict at some point. These disputes often involve:

• Lease violations: Tenants may be accused of damaging the property or not paying rent, while landlords might be accused of not holding up their end of the deal.

• Eviction battles: Sometimes, tenants refuse to leave, or landlords try to evict without following the legal process.

• Habitability issues: Landlords are responsible for keeping the property livable. If there’s a serious issue, like no heat in the winter, tenants have the right to take legal action.

Recent Example

In a 2023 case in New York, tenants sued their landlord for failing to fix mold and pest issues. The court sided with the tenants, ordering the landlord to make repairs and pay damages, emphasizing the importance of maintaining habitable living conditions.

How It’s Usually Resolved

Many landlord-tenant disputes end up in housing court, where judges quickly handle cases like non-payment of rent or property damage. For bigger issues, like habitability disputes, mediation or legal representation might be necessary.

4. Construction Defects

When you’ve invested in a new property, the last thing you want is to discover construction defects. Unfortunately, it happens all too often. Common problems include:

• Structural issues: Problems with the foundation, roof leaks, or faulty plumbing.

• Shoddy workmanship: Contractors cutting corners, leading to problems down the line.

• Code violations: Discovering the building doesn’t comply with local or state building codes, which can create a legal headache.

Recent Example

In a 2023 Las Vegas case, a homeowner sued a construction company after discovering severe water damage due to improperly sealed windows in their newly built home. The court ordered the company to pay for the repairs and compensate for emotional distress.

How It’s Usually Resolved

Construction defect cases often involve expert witnesses, like engineers or architects, who testify whether the work met industry standards. Most of these disputes go through arbitration, but if that doesn’t work, it can escalate to a lawsuit.

Resolving Real Estate Disputes

Disputes are stressful, but there are options for resolving them, including:

• Mediation: A neutral third party helps both sides come to an agreement without going to court.

• Arbitration: Similar to mediation, but the arbitrator’s decision is legally binding.

• Litigation: The most formal (and expensive) route, but sometimes necessary when other methods fail.

• Settlement: Often, parties agree on a financial settlement to avoid the hassle of a trial.

Final Thoughts

Real estate disputes are becoming more common as property prices rise and contracts grow more complex. Whether you’re a buyer, seller, landlord, or tenant, knowing the types of issues you might face and how to resolve them can save you time, money, and stress.

If you’ve ever found yourself in a real estate dispute, share your experience in the comments below. Let’s talk about what you’ve learned or what tips you might have for others!