Real Estate Battles: Top 15 Common Disputes

Buying or selling real estate can be an exciting and complex process. However, it can also be fraught with potential disputes that can arise during or after a sale. Understanding the most common real estate disputes can help buyers and sellers be better prepared to avoid them or handle them effectively when they arise. In this blog, I will review 15 of the most common real estate disputes in Toronto, Canada.

1. Breach of Contract: A breach of contract can occur when one party fails to fulfill their contractual obligations. In a real estate context, this can happen when a buyer fails to close the transaction, or when a seller fails to provide clear title to the property.
2. Disputes Over Property Boundaries: Property boundary disputes can occur when there is confusion or disagreement over where a property line is located. These disputes can arise when one party erects a fence or builds a structure that encroaches on the neighboring property.
3. Property Inspection Issues: Inspection issues can arise when a property inspection uncovers issues that were not previously disclosed, or when the inspection is not conducted to a satisfactory level. These issues can range from minor repairs to serious structural defects.
4. Title Defects: Title defects can arise when there are problems with the legal ownership of a property. These defects can include issues with the chain of title, liens, or encumbrances on the property.
5. Failure to Disclose Property Defects: Sellers have a legal obligation to disclose any known defects with a property. Failure to do so can result in legal action against the seller.
6. Mortgage Issues: Mortgage issues can arise when a buyer is unable to obtain financing for a property, or when the terms of the mortgage are not satisfactory to the buyer.
7. Disputes Over Deposits: Deposits are typically paid by the buyer as a show of good faith that they intend to purchase the property. Disputes can arise over the return of these deposits if the transaction falls through.
8. Encroachment Issues: Encroachment issues can arise when a property owner uses a portion of a neighboring property without permission or when a neighbor’s structure encroaches on the property line.
9. Zoning and Land Use Issues: Zoning and land use issues can arise when a property owner wants to use the property for a purpose that is not permitted under the current zoning regulations. These issues can also arise when there are disputes over easements or access rights.
10. Boundary Line Agreement Disputes: Boundary line agreement disputes can arise when neighbors enter into an agreement to settle a boundary dispute, but later disagree over the terms of the agreement.
11. Lease Agreement Disputes: Lease agreement disputes can arise when there are disagreements over the terms of a lease agreement between a landlord and a tenant.
12. Condominium Disputes: Condominium disputes can arise when there are disagreements over the rules and regulations of a condominium building, or over shared expenses or maintenance issues.
13. Brokerage Disputes: Brokerage disputes can arise when there are disagreements over the commission paid to a real estate broker or over the services provided by the broker.
14. Environmental Issues: Environmental issues can arise when there are concerns over contamination or pollution on the property.
15. Inheritance and Estate Issues: Inheritance and estate issues can arise when there are disputes over the ownership or distribution of a property as part of an estate.

In conclusion, real estate disputes can be complex and expensive to resolve. It is important to work with experienced real estate professionals who can help you navigate potential disputes and avoid them when possible. By understanding the most common real estate disputes, buyers and sellers can be better prepared to handle any issues that may arise during a real estate transaction in Toronto. Additionally, it is crucial to review all the documentation involved in a real estate transaction carefully, including the purchase agreement, title report, inspection reports, and any other relevant documents.

To minimize the likelihood of a dispute, buyers and sellers should also communicate openly and honestly with each other throughout the transaction. Sellers should disclose any known issues with the property, while buyers should ensure they fully understand the terms of the purchase agreement before signing it.

If a dispute does arise, it is important to act promptly and seek the advice of an experienced real estate attorney. Legal options may include mediation, arbitration, or litigation, depending on the nature of the dispute.

Finally, buyers and sellers should also take steps to protect themselves before entering into a real estate transaction. For example, buyers may want to obtain title insurance, which can provide protection in case of title defects, while sellers may want to ensure they have clear title to the property before listing it for sale.

In summary, understanding the most common real estate disputes and taking steps to prevent them can help buyers and sellers avoid costly and time-consuming legal battles. By working with knowledgeable real estate professionals and seeking legal advice when necessary, both buyers and sellers can ensure a smooth and successful real estate transaction in Toronto, Canada.