Common Disputes That Lead to Residential Real Estate Litigation

Buying a home is a significant milestone, but real estate transactions can turn into legal battles if issues arise. Understanding common disputes in residential real estate can help buyers, sellers, and agents avoid costly mistakes. These disputes can be complex, and often, the best resolution requires experienced legal assistance.

At Cowan & Carter Law Firm, we are experienced in real estate law Ontario, helping clients navigate disputes with strategic guidance. Our real estate lawyers in Toronto have years of experience in handling real estate conflicts, from contract breaches to title disputes.

This blog covers frequent legal issues in residential real estate and explains how they often lead to litigation. By knowing these common disputes, you’ll be better equipped to protect your rights and make informed decisions.

1. Breach of Contract

Contracts bind buyers and sellers to specific terms. Yet, breaches are common and often result in legal consequences.

Failure to Close

Sometimes, buyers or sellers back out at the last minute. This failure to close not only disrupts the transaction but can lead to financial losses for the other party. In many cases, the affected party may seek legal action to recover damages or enforce the sale.

Non-Disclosure of Material Facts

Sellers are legally obligated to disclose any known issues with the property, such as structural damage, water issues, or past infestations. Failing to provide accurate information can mislead buyers, potentially causing them to purchase property under false pretenses. This breach of agreement of purchase and sale often justifies legal action, especially if the buyer incurs unexpected repair costs.

2. Misrepresentation and Fraud

Misrepresentation and real estate fraud are serious issues. These disputes often arise when one party misleads the other about critical property details.

False Statements

Some sellers exaggerate or falsify the condition of their property to attract buyers. They may claim that the roof is new, the plumbing is updated, or that the home is free from past structural issues when these claims aren’t true. When buyers discover the truth, they can seek damages for any losses due to these false statements.

Concealment of Defects

Some sellers go a step further and hide significant issues that could affect the property’s value or safety. Concealing a termite infestation, foundation problems, or hazardous materials like asbestos may save the seller money upfront, but it puts the buyer at risk. Legal action often becomes necessary to address this form of deception.

3. Title Disputes

Clear title is essential in any real estate transaction. However, unresolved title issues can cause confusion and lead to legal disputes.

Unclear Ownership

Sometimes, records fail to clarify property ownership. Conflicting names or missing documents can make it difficult to determine who legally owns the property. Such disputes often occur in inherited properties where multiple parties claim rights. Legal intervention becomes essential to establish rightful ownership.

Easements and Encroachments

Property boundaries are a common source of conflict. Easements allow specific uses of a property, such as a shared driveway, but they can lead to disputes if either party feels encroached upon. Similarly, unauthorized use of another’s property, such as building a fence beyond one’s boundary line, can provoke legal claims.

4. Boundary Disputes

Boundary disputes often emerge between neighbors, especially in high-demand residential areas where every square foot matters. Unclear property lines or unauthorized structures can turn friendly neighbors into legal adversaries.

Survey Discrepancies

Property surveys sometimes reveal boundary conflicts that neither party expected. For example, one homeowner’s fence may lie a foot into the neighboring property due to an outdated or inaccurate survey. These discrepancies often lead to disputes that require legal intervention to clarify ownership and establish rightful boundaries.

Fence and Structure Encroachments

Structures like fences, sheds, or even gardens that cross property lines can cause friction. If a neighbor builds a shed partially on your land, you have grounds for legal action. Encroachments can affect property values, privacy, and overall enjoyment of the home, making these cases particularly sensitive and often requiring legal resolutions.

5. Landlord-Tenant Conflicts

Landlord and tenant relationships depend on clear agreements and mutual trust. When either party breaches the lease terms, disputes arise, sometimes leading to litigation.

Lease Agreement Violations

Tenants and landlords alike must adhere to lease terms. If a tenant damages the property or disrupts neighbors, it breaches the lease, and the landlord may seek legal recourse. Similarly, if a landlord fails to provide necessary repairs, the tenant may take action. Resolving these issues often requires a clear interpretation of lease terms and sometimes court intervention.

Eviction Proceedings

Evictions typically arise from non-payment or serious violations of the lease. When tenants fail to pay rent or create unsafe living conditions, landlords have the right to start eviction proceedings. However, the process involves specific legal steps, and any misstep can delay eviction, making legal expertise valuable in such cases.

6. Property Defects and Non-Disclosure

Property defects, whether hidden or obvious, can lead to serious conflicts between buyers and sellers. When issues with a property come to light after the sale, the buyer may seek compensation or demand repairs.

Latent Defects

Latent defects are hidden problems, like a cracked foundation or faulty wiring, that standard inspections may not reveal. These defects can pose safety risks and reduce property value. If a buyer finds latent defects that the seller knew about but did not disclose, legal action may be the only remedy.

Patent Defects

Patent defects are visible issues, like broken windows or wall cracks, that should be apparent during an inspection. If a buyer claims to have missed these, they often lack legal recourse. However, disputes arise if the seller downplayed the severity or misrepresented the cost of fixing the defect, leading to potential legal consequences.

7. Mortgage and Foreclosure Issues

Mortgage and foreclosure issues bring significant stress to homeowners. Financial challenges can quickly escalate into legal matters, affecting both the borrower and the lender.

Default on Payments

Failing to keep up with mortgage payments has immediate and serious consequences. When a borrower misses payments, the lender has the right to demand repayment or begin foreclosure. Defaults can lead to the loss of property and a negative impact on credit, making it challenging for homeowners to regain financial stability.

Disputes Over Foreclosure Proceedings

Foreclosure is a legal process with strict requirements. Borrowers sometimes challenge the process, citing unfair practices or procedural errors. For instance, a homeowner might argue that the lender did not provide adequate notice or failed to consider loss mitigation options. Legal guidance is essential to navigate foreclosure disputes, ensuring that both lenders and borrowers follow the law.

8. Zoning and Land Use Conflicts

Zoning laws regulate property use, dictating what homeowners can and cannot do with their land. Violations or misunderstandings in this area lead to conflicts, sometimes requiring court intervention.

Non-Compliance with Zoning Laws

Zoning laws set boundaries on property usage. For instance, a homeowner might convert their garage into a rental unit without the required permits. Such actions violate zoning rules and can lead to fines, forced renovations, or legal battles. Understanding local regulations is key to avoiding these conflicts.

Disputes Over Property Use

Property use can change over time, often sparking disputes. For example, a homeowner may want to open a small business from their home, which might conflict with residential zoning laws. Disputes arise when these changes impact neighbors or the community, leading to formal complaints or legal action.

How Cowan & Carter Residential Real Estate Litigation Lawyers Can Assist in Property Disputes

Cowan & Carter Law Firm brings valuable experience and client-focused strategies to every real estate dispute. Our team of real estate lawyers in Ontario understands the challenges homeowners and property investors face and provides strong legal support to navigate these conflicts.

Experience in Effective Real Estate Litigation

Our attorneys have deep expertise in property disputes, from contract breaches to construction conflicts. With a firm grasp of real estate law, we guide clients through complex cases and offer practical solutions. Our best civil lawyers in Toronto Ontario know the best strategies to protect your rights, helping you make informed choices for favorable outcomes.

Client-Centered Approach

At Cowan & Carter, our consultation focuses on each client’s unique needs and situation. We don’t believe in one-size-fits-all solutions; instead, we tailor litigation service strategies to suit each case. Whether you’re dealing with a boundary dispute or a zoning issue, our litigation law firm attorneys work closely with you to understand your goals and craft an approach that serves your best interests.

Commitment to Resolution of Legal Disputes

Our knowledgeable real estate lawyers are committed to achieving the best possible outcome for clients. From mediation and negotiation to litigation, our team pursues the most effective paths to resolve disputes efficiently. Our goal is to minimize stress and provide clarity, giving clients confidence throughout the complex litigation process of commercial and residential disputes in Canada.

Contact Us and Let Our Law Firm Handle it For You

Residential real estate disputes range from contract breaches to boundary issues, each with unique challenges. Addressing these conflicts promptly with legal assistance is crucial to protecting your investment and avoiding prolonged issues.

Cowan & Carter civil law firm in Toronto, Ontario offers guidance in navigating residential and commercial real estate disputes, ensuring your rights are well-defended. If you face a real property conflict, call us today for experienced, results-oriented support.

DISCLAIMER: Please note this article is not legal advice. You should always consult a lawyer for legal advice regarding your particular situation. The article is not necessarily a complete and/or accurate explanation of the law – it is an article of a general nature.

Published on November 16, 2024