Real Estate and Property Disputes

When you buy real estate, you are full of hope and excitement. You hope for a long and happy ownership experience. Unfortunately, it doesn’t work out that way for all property owners. Sometimes, buyers, sellers, owners, tenants, and neighbors can find themselves amid real estate litigation. With so many types of real estate transactions, several types of property disputes can arise.

What Is a Property Dispute?

A property dispute is a disagreement between multiple parties. Due to the unique nature of real estate, disputes can arise in various situations:

• Rightful ownership of a property
• Real estate contracts
• Boundary lines

Property disputes can happen between owners, landlords, tenants, family members, buyers, or sellers. While many property disputes can be resolved through communication and mediation, some issues escalate to serious legal issues. A real estate attorney can help you resolve the issue in these situations.

Ryan D. Yahne, a top-rated real estate attorney, Piskel Yahne Kovarik in Spokane, Washington, explains that communication is key to resolving real estate disputes. “Go talk to your neighbor. I feel like most cases that get all the way to my office had some failed communications upfront or people, you know, digging in.“

What Are the Most Common Types of Real Estate Disputes?

While the very nature of real estate means that no two property disputes are the same, there are some common sources of discord. Property disputes typically arise when there is a contract between two parties. One party will fail to uphold their part of the contract, leading to a dispute. Another common source of disputes is conflicts over ownership and use rights.

Contract Disputes

When there is a sale of property, this is done through a real estate contract. The buyer and seller will each sign the contract that contains the sale terms. Unfortunately, disputes can arise from these contracts. Some common reasons for contract property disputes include:

• Financial conflicts
• Breach of contract
• Conflicting interpretation of the terms

In some cases, real estate fraud can happen, where one party intentionally misleads another in a real estate contract.

Another real estate contract is a mortgage. This is an agreement between a borrower and lender that enables the borrower to buy real estate. If the lender fails to repay the loan, it may initiate foreclosure proceedings, which can create a dispute between the borrower and the lender.

Title Defects

During a property sale, title defects are a common source of property disputes. All real estate has a title that records who has legal ownership rights. Multiple people can and will claim legal ownership rights if there is a title defect. Common reasons for title defects include:

• Public record errors
• Tax lien
• Mechanic’s lien
• Unpaid debt
• Missing heirs

If the title defect is discovered during a property sale, the buyer will want it corrected before completing the sale. Title defects that arise after a sale will typically require legal action. The property owner will want to hire a real estate attorney to advocate for their ownership rights. Otherwise, they risk losing their ownership to someone else.

Landlord and Tenant Disputes

Another type of real estate contract is a lease between a landlord and a tenant. The landlord signs a contract called a lease with the tenant. Property disputes arise when the landlord interferes with the tenant’s enjoyment of the property. They can also arise when the tenant fails to follow the lease terms or pay rent. When this happens, the parties can work to resolve the issue. If this fails, the landlord may consider eviction of the tenant. A real estate attorney can prepare and review lease agreements to ensure they are legally enforceable. 

Boundary Disputes

A common source of dispute is between neighboring property owners. A common issue between neighbors is line disputes. Two property owners whose real estate shares property lines disagree over where the boundary line is. This can usually be resolved by having a survey performed to determine property boundaries. However, the dispute can escalate to require mediation or a court case.

Another common dispute is over easements and encroachments. These happen when someone enters another person’s land and uses it. In some situations, there is an established easement that the current or new owner does not want to honor. Another common property dispute arises when someone encroaches on another’s land to use it without permission.

Yahne explains how easements can be a source of dispute for people who own neighboring property. “What I see the most is two property owners in a dispute over an easement. Whether it’s the existence of the easement, the scope of it, or just the fact that it’s there—someone doesn’t like it at all. “

Governing Disputes

Another common area where disputes arise is between property owners and a governing body. For example, if a home is in a community with a homeowner’s association (HOA), disputes can arise between the homeowner and the HOA. There will be a document that outlines the regulations that the homeowners must abide by. When they don’t, the HOA will impose penalties in the form of fines. Disputes that cannot be resolved will escalate to mediation and then court.

Another source of dispute can be between property owners and the local government. Zoning, building codes, and ordinances dictate how property is used. When these aren’t followed, property owners can be issued fines. This applies to homeowners who do unauthorized work on their homes and to commercial property owners who plan to operate a business on the property.

How Do You Legally Resolve a Property Dispute?

How you approach a property dispute can vary depending on the nature and type of the dispute. If the dispute is between you and another party, try to resolve the issue by contacting the other party. Suggest a compromise or solution that everyone can agree on. If the dispute is between you and a government agency, ask the agency your options for correcting the issue. Working out a solution by communicating is generally the most economical and fastest path to resolution.

When the parties cannot reach a solution, the next step is to send a demand letter to make your grievance official and formal. Then, enter into negotiations to find a legal resolution. This is usually when people consider hiring an attorney. You may attend a mediation or arbitration that an independent third party oversees.

If this fails, you may consider going to court. Depending on the type of claim and its value, this could be through small claims court. Either way, your legal dispute will go through the legal process, with the argument heard before a judge. After the trial, the judge will legally rule and issue a court order. The parties must adhere to this ruling, but they can appeal it.

There are advantages to working out your property dispute outside of the court. When you negotiate on your own, you can create a solution that works for you. When a judge presides over the case, they are limited to the solutions outlined in the law.

Can You Resolve a Property Dispute Without Going to Court?

Not all property disputes result in your going to court. With the legal process being time-consuming and expensive, it is in everyone’s best interest to resolve the dispute before going to trial. There are several dispute resolution options available. Often, the process of resolving disputes is outlined in the contract. If there isn’t a controlling agreement, parties can agree to mediation before pursuing legal action.

If you fail to agree, you can still pursue compensation through the court by going to trial. Another option is to seek compensation in small claims court. This simplified legal process allows individuals to represent themselves or hire an attorney. Value thresholds determine whether a claim is suitable for small claims court.

What if a Property Dispute Involves a Family Member?

Unfortunately, property disputes often arise between family members. They can arise when multiple family members are co-owners can’t agree on what to do with the property. Another common situation when family disputes arise over property is during probate. A family member dies, and the other family members dispute who is supposed to inherit the property.

Ultimately, it is important to determine your priorities. Is the real estate worth losing your close family relationships? Try to work out a solution that allows you to retain your family unit. If you can avoid going to court, this would save everyone time and money.

However, if you can’t resolve the discord, it can grow into serious legal issues. At this point, it is best to stop fueling the flames of animosity within the family and let the lawyers handle the case.

What Is the Statute of Limitations for a Property Dispute?

The statute of limitations for your property dispute will vary based on your dispute type. For property disputes, the statute of limitations is defined by state law. The time limit to bring your case can vary from two to ten years. Construction conflicts have a statute of limitations that ranges from four to ten years. Claims of negligence or property damage have a statute of limitations that ranges from two to six years, depending on the type of claim. If your real estate dispute involves probate, you only have two years to bring your claim from the decedent’s death.

These are only examples of the statute of limitations that can apply to your property dispute. Because the statute of limitations can vary greatly, speaking with a real estate lawyer is important. Waiting can cause you to miss the statute of limitations deadline. When this happens, you can no longer pursue your claim in court.

Find an Experienced Lawyer

Property disputes can quickly escalate to become an expensive and lengthy legal issue. Before that happens, consider seeking legal advice from a property dispute lawyer. Their knowledge of real estate law can provide valuable guidance on navigating your property dispute. Because property law can be so varied, look for a lawyer who focuses their practice on the types of disputes that you face.

Visit the Super Lawyers directory to begin your search for an experienced real estate attorney. For more information, read our guide on what a real estate attorney does.