Real estate law is a complex area of the law and can be difficult to navigate. Says Wade Kricken as a buyer or seller, it’s important to understand your rights and responsibilities under state law. Here are some of the most common real estate law suits:
Sellers must disclose known issues with the property.
While you’re looking for homes to buy, it’s important to keep in mind that your potential home’s seller is a potential defendant. If they are alleged to have committed fraud in their disclosures or otherwise breached the contract, they may be held legally responsible and be required to pay damages.
For example, if you make an offer on a property but later discover that its condition is substantially different than what was advertised or represented by the seller (for example, if it has mold), you can sue them for fraud or breach of contract.
Sellers must disclose whether the property has been used for drugs or methamphetamine.
Sellers must disclose whether the property has been used for drugs or methamphetamine. If a seller does not disclose this information, they are liable for damages. If a seller does disclose this information, they are not liable for damages.
Buyers aren’t allowed to misrepresent themselves in order to get a better price.
If a buyer lies about their income, credit score, plans for the property or what they’re going to do with it after buying it, they can be sued by their sellers. If a seller finds out that you have lied about any of these things and they lose money because of it—they might be able to sue you too.
Real estate agents are legally required to put their clients’ interests first.
Real estate agents are legally required to put their clients’ interests first and take advantage of them.
- Real estate agents are not allowed to take advantage of their clients by disclosing any conflicts of interest, providing full disclosure, or doing anything else that would give the agent an unfair advantage.
- Real estate agents must disclose all known facts about a property before selling it so that buyers can make an informed decision about whether they want to purchase it.
If a buyer defaults on a loan, they’re still responsible for fees, even if they don’t get the house.
If you’re a buyer, and you default on your loan, the bank can still take your house. But that doesn’t mean they’ll let you off scot-free. You’ll still owe them the money due on your mortgage—at least until the sale of the property is complete.
You may also be sued by the bank for breach of contract or fraud if:
- You broke a promise in writing (such as to pay more than required) before closing
- Your loan application contained false information or was incomplete
Hopefully, you now have a better understanding of what it means to be a real estate investor or seller. Of course, there are many other types of real estate law suits that we didn’t cover in this article. If you’re interested in learning more about them, then we recommend checking out our resources section below.