In Part I of this multi-part series, we began to examine some of the most common causes of real estate disputes. Part I included the authority to sell, the legal description of the property in question and zoning issues. Here, in Part II, we will look at a few more common problems in real estate transactions.
Many real estate transactions include an exchange of what is termed “earnest money.” These are funds that are paid out by the potential buyer to show good-faith to the seller that the buyer has sufficient funds to carry through with the transaction. However, when these funds are not paid in accordance with the timeline and terms outlined in the purchase agreement, a real estate dispute is likely to arise. This type of misstep is actually a breach of the real estate contract.
Another problem is one of the most fundamental steps that should never be an issue: putting everything in writing. During the course of a real estate purchase both parties may seem cordial enough, even friendly, but it is important to never let an agreement rest on oral obligations. Anything that needs to be completed as part of the deal needs to be in writing.
Disclosure is another huge concern in a real estate transaction. A seller is usually obligated to disclose any defects in the property, be it electrical problems, plumbing problems or cracks in the foundation. The lack of disclosure can lead to serious disputes if an issue pops up down the road and it can be shown that the seller knew about the issue and failed to disclose it prior to concluding the sale.
Source: www.americanbar.org, “12 Ways to Foul Up a Real Estate Transaction,” Accessed July 4, 2015