Florida Real Estate Contract Disputes
When you enter into a Contract for Sale, Purchase Agreement, Construction Contract, or other real estate contract, you agree to the terms of the contract. If you breach any of the terms of the contract, you can face several consequences. Contracts for real estate are intended to reduce the risk of disputes by providing very detailed documentation outlining each party’s duties and responsibilities regarding the real estate transaction.
However, disputes in real estate transactions arise even when the parties have a very clear, detailed real estate contract. Before entering into any real estate contract, you should consult with a Florida real estate attorney to review the terms and conditions of the contract. Understanding the terms of the contract is crucial.
Our Daytona real estate attorney can review your contract, explain the terms of the contract, and suggest any revisions that would be in your best interest before you sign the contract. Call (888) 316-2131 to schedule an appointment with an experienced real estate attorney in Daytona.
Common Reasons for Contract Disputes for Residential Real Estate
Unfortunately, disputes can arise during a real estate transaction that can place a hold on the closing. When disputes arise in a residential closing, the dispute can cause the buyer to lose his or her loan commitment and interest rate. For a seller, a dispute can increase the closing costs by increasing the payoff amount for the mortgage,and it could delay the closing of another home.
Therefore, it is usually in the best interests of both parties to resolve the real estate contract dispute as quickly as possible. Some of the most common disputes that occur in residential real estate transactions include:
• Title Problems — A title search reveals a defect or cloud on the title that must be corrected before the seller can transfer clear title to the buyer.
• Undisclosed Problems with the Home — A seller is required by law to disclose certain issues to the purchaser. If a seller fails to disclose problems with the house, the buyer could own a home that is worth much less than the price he or she paid for the home.
• Zoning Issues — If a buyer intends to modify the property such as adding a mother-in-law suite or widening the driveway, zoning ordinances may be an issue. Because a seller may not be aware of your plans or the seller is not aware of the zoning restrictions, it is important to consult with a real estate attorney to determine if your plans for the property conflict with any zoning ordinances.
• Repairs — Many contracts are contingent upon a home inspection. If the home inspection reveals several issues, a purchaser may demand that the seller make repairs before closing. However, the seller may refuse to make the repairs. If there is nothing contained in the contract regarding repairs, a dispute may arise.
• Breach of Contract — Either party who breaches any of the terms or conditions of the contract could be sued for breach of contract. However, minor disputes about terms and conditions can usually be resolved with the assistance of a Daytona real estate attorney.
Many areas can give rise to a dispute. The key is to work with a real estate attorney when drafting the contract to ensure the terms and conditions are clear in the contract to reduce the risk of a dispute.
Common Reasons for Contract Disputes for Commercial Real Estate
Commercial real estate transactions tend to be more complex than residential real estate transactions. Therefore, a contract for a commercial real estate transaction must be very detailed to avoid disputes. Common disputes that may arise in a commercial real estate closing include:
• Tenants and Lease Agreements — If the commercial property is a rental unit, disputes related to lease payments, renewal of leases, and other tenant-related disputes may arise.
• Construction Contracts — Delays, add-ons, defects in construction, zoning problems, and other issues related to new construction can give rise to disputes.
• Property Taxes and Assessments — The property taxes and assessments for commercial real estate are much higher compared to residential property. Disputes about payment can often cause a problem at closing.
• Environmental Issues — Because commercial property is often used to operate a business, there could be environmental issues that can cause disputes between the parties.
• Breach of Contract — Failing to abide by any of the terms of the contract can result in a lawsuit if the parties cannot settle the dispute efficiently and sensibly.
There are numerous situations in commercial real estate transactions that can give rise to a dispute. An experienced Daytona commercial real estate attorney can help reduce the risk of disputes by reviewing contracts in advance and providing advice and guidance throughout the entire process.
Call for an Appointment with a Daytona Real Estate Lawyer
If a dispute arises in your real estate transaction, do not try to handle the matter yourself. Contact our office to discuss the issues with an attorney. Disputes can be time-consuming and costly if not handled correctly.