No one enters into a real estate contract thinking that something might get messed up during the transaction. Many of our South Florida readers have been involved in real estate transactions that have gone smoothly, with no unexpected situations stalling the deal. However, that obviously does not occur in every transaction. In some cases, a problem might arise that leads to a serious real estate dispute. In Part I of a multi-part series, we will take a look at some of the most common causes of these disputes.
First, as in any type of transaction, the seller must have the authority to make the sale, and the buyer must have the authority to make the purchase. A seller who is mistaken about his authority to conclude a deal can be a problem. That is why title searches are a key part of real estate transactions. It is important for a potential buyer to know they are dealing with the right person.
Next, a purchase agreement needs to include a detailed legal description of the property. Most people are likely to be unfamiliar with what exactly a legal description is. What it is not is the mailing address. The legal description is something you would see in the land development and planning departments of the county. These descriptions are used for surveying and detailing property lines.
Zoning issues are another common cause of real estate disputes. These issues are most commonly encountered when a buyer is purchasing a vacant lot. Perhaps the buyer intends to build a single-family home, or perhaps the buyer wants to build a restaurant. If the property is subject to the restrictions of a particular type of zone, be it residential, commercial or industrial, the buyer’s intended use may conflict with what property uses are allowed for the property in question. Without knowing the zoning restrictions for a certain piece of property, a real estate dispute could become a real possibility.
Source: www.americanbar.org, “12 Ways to Foul Up a Real Estate Transaction,” Accessed June 27, 2015