Like any other business transaction, it is not uncommon in real estate to encounter a few pitfalls. Real estate transactions often involve a large amount of money, representing the most significant transaction a buyer enters into. These problems often vary from purchase contract issues, failure to disclose, legal issues, and disputes between owners.
Although disputes with real estate agents are often common, these problems are typically minor, and issues may also vary. Often, these disputes are over strategy concerning the client’s real estate goals. The agent may be hesitant to implement the client’s desired strategy because he considers it ineffective or illegal.
While there are many kinds of disputes a buyer and an agent get into, it is vital to recognize each of them and determine the best course of action. So if you are managing a real estate business, you may want to look into the different ways on how to resolve disputes in the real estate world.
Cancellation of contract
One of the usual causes of a real estate dispute is when the client immediately cancels a contract for many reasons. The problem becomes even bigger when the client has already signed the agreement. In any legal matter, once contracts have been signed, the party should not back out of the deal with no legal grounds.
Suppose the client attempts to break the contract with no proper legal grounds, the agent can sue the client. Real estate agents refer to this as a breach of contract that may lead to a lawsuit.
Hiring a legal consultant who specializes in real estate can help you in this regard. The decision to cancel a contract may typically happen because of a serious issue. By consulting the right legal presentation, you can easily identify a problem concerning the client’s contract and provide a solution to address the issue.
Misunderstandings and poor communication are also common causes for real estate disputes. These issues often occur when the seller fails to communicate or inform the agent about a property’s crucial aspect. A simple misunderstanding like this one can turn into a strong dispute. These disputes may vary from undisclosed documentation issues or a new problem about a specific element on the property that requires the buyer’s monetary assets.
One example is an undisclosed repair issue in a property. A buyer closes a property deal only to find problems that the seller fails to disclose during the buying process. It often happens when the buyer found necessary repairs on the property after they move in.
Inspecting the negotiation process can help resolve such disputes. Once the buyer raised an issue, it is essential to review all legal documents carefully. But if the buyer has already raised the problem and the seller fails to perform the repair, the buyer can use all the correspondence exchanged regarding the repairs. This way, the buyer can quickly determine the type of legal option they should carry out.
Undisclosed property issues are easier to settle if the seller already describes the problem in the legal documentation during the time of closure. But keep in mind that states differ which types of property defect a seller is allowed to disclose. Some states even allow buyers to hold agents accountable if they fail to discuss the defects during the negotiation process.
To avoid disputes concerning disclosure, it is better to address repair issues before finalizing a deal. The seller can also invite the buyer for an ocular inspection if they find a problem that the seller might have overlooked.
Once the buyer raises the issue, the seller must have all the necessary repairs performed as requested. Simultaneously, the seller should also ensure that repairs have been performed according to the buyer’s expectations.
Disputes involving real estate agents
Another common problem in real estate transactions is a third party’s involvement, such as the real estate agent. A buyer or seller may believe that the agent is not performing according to the best interests of both parties because his only goal is to make a sale. A real estate agent receives a commission from the sale, so they have the incentive to move for a sale according to their interest.
To solve issues like this, the parties involved may contact the agent’s supervisor. Many agents often work under the management of a sales manager, team leader, or employing broker. The first line of contact is the head of the agent or the supervisor. If they do nothing to resolve the issue, the complaining party can go up the chain until they raise the problem to the real estate company’s owner.
Encountering real estate disputes is always a part of managing a real estate business. You can easily overcome these challenges with proper communication, quick thinking, and valuable information. But if an issue becomes an overwhelming process, make sure to have a real estate attorney involved.