Real estate disputes in California arise because buyers and sellers don\u2019t know how to avoid them in the first place. Knowing the common pitfalls to watch out for helps to avoid a transaction that ends up in legal proceedings. As San Francisco Landlord-Tenant and\u00a0Real Estate Attorneys, we help our clients handle real estate disputes. In this article, we\u2019ll outline common causes of real estate disputes in California and how to avoid them.<\/p>\n
When buyers and sellers sign a real estate purchase contract, it contains terms and conditions to which both parties must comply. This includes terms such as closing date, contingencies, and items to be included with the purchase of the property. If either the buyer or seller fails to follow the terms of the contract, the other party may have a right to seek legal remedies for breach of contract. In fact, many contracts require that buyers and sellers resolve disputes through mediation<\/a> and arbitration \u2013 not filing a lawsuit.\u00a0<\/span><\/p>\n To avoid real estate disputes in California, buyers and sellers must read the real estate sales contract carefully. In some cases, the real estate agent\u2019s boilerplate contract may not thoroughly allow the parties to achieve their goals. Some real estate transactions are not typical. These situations may require the assistance of a real estate lawyer. A real estate attorney can prepare a purchase contract or review a contract to clarify the rights and duties of each party.<\/p>\n In addition, an attorney can look for potential problems with a contract and negotiate to resolve the issue. It can be a wise decision to have an attorney review a contract before signing it. This extra effort can prevent getting stuck in a contract with unfavorable conditions, and a legal dispute later on.<\/p>\n Real estate disputes in California can also arise with a real estate agent. Remember, real estate agents have a fiduciary duty<\/a> to act in best interest of their clients. This is in addition to their contractual responsibilities under their contracts with their clients.\u00a0 <\/span>Agents cannot place their own interests, or the interests of a third party ahead of their client\u2019s interests.\u00a0<\/span><\/p>\n Real estate agents must keep sensitive client information, such as financial data, completely confidential. In addition, real estate agents must perform to the best of their abilities. Real estate agents are responsible for financial damage they may cause by a negligent mistake that causes a client to lose money. The real estate agent has a duty to disclose any information that would benefit their client.\u00a0What if a real estate agent knows that a property has a structural defect and does not inform the client? In that instance, the client has the right to file a lawsuit against the real estate agent.<\/p>\n One of the most common causes of real estate disputes in California is because one party fails to perform the obligations of the contract. This occurs when either party in a real estate purchase contract refuses (without a valid legal excuse) to go through with the purchase. In that case, the other party has a right to file a specific performance lawsuit. They also have a right to seek a court judgment or arbitration award requiring the other side to complete the purchase. This is an alternative to seeking damages for breach of contract.<\/p>\n Determining which remedy makes the most sense will depend on the facts. Pending resolution of the dispute, it often makes sense to record a notice of pending action. This is often called a \u201clis pendens.”\u00a0Its purpose is to tie up title until the dispute is resolved. In such situations, it\u2019s important to speak to an attorney as soon as possible.\u00a0<\/span><\/p>\nRead the Real Estate Sales Contract Before Signing<\/h2>\n
Breach of Duty or Negligence<\/b><\/h3>\n
Specific Performance of Contract<\/b><\/h3>\n
Boundary Disputes<\/b><\/h3>\n