It takes a skilled and experienced attorney to be knowledgeable both in real estate transactions and litigation. Often, lawyers will specialize in either litigation involving other types of claims or real estate transactions. Many attorneys are not experience to do both. Commercial real estate transactions are often markedly different compared to residential transactions as well.
Litigation for Commercial Real Estate Disputes
Even the most well-planned real estate transactions can run into snags, and litigation may be the only way to solve a real estate dispute. This is especially true when the dispute involves feuding companies.
Litigation for commercial real estate disputes can be extremely complicated and touch on several areas of the law. They also often involve large sums of money and valuable property. You should never attempt to navigate these treacherous waters alone.
Common Causes of Commercial Real Estate Disputes
Because most commercial real estate transactions have similar structures and players, some same types of disputes seem to appear repeatedly. While many of these problems can be resolved with creative negotiation, sometimes litigation for commercial real estate disputes is necessary.
Breach of Contract
Every real estate transaction should involve a contract, even if you are setting up a commercial lease agreement between friends or business partners. Most real estate agreements are required to be in writing to be legally binding. While there are some exceptions to this general rule, it is always a good idea to have a written agreement regarding any real property transaction.
A real estate dispute often triggers a breach of contract claim. This type of claim occurs when one party does not fulfill their obligations under the contract or their “part of the bargain.” This may be regarding maintenance, payment of funds, or delivery of the property in the agreed upon manner. If the party breached the contract, you might be able to obtain monetary damages based on the breach.
Real Estate Fraud
In some commercial real estate transactions, things are not as they appear. For example, if the party selling the property states that all the electrical and plumbing are in good working order, but they are not, then you may need to resort to litigation for this commercial real estate dispute. If this type of statement is made knowing that it is untrue, then that could constitute real estate fraud.
In commercial transactions, it is far more likely for sellers to attempt to sell property in which they have no rights or only limited rights. Once the buyer realizes this, they end up with no legal claim to a piece of real estate, despite spending a significant amount of money. This blatant scam is definitely grounds for a fraud action.
Co-Owner Disputes
Commercial real estate is often owned by more than one person or entity. When the co-owners disagree on how to maintain the property or whether they should sell it, disputes can arise. There may also be disputes regarding tenants, rental payments, and a wide variety of other issues.
Real estate is difficult to divide by nature. As such, co-owner disputes can be difficult to resolve if one of the owners does not want to give up their rights to the ownership or control of the property. Unfortunately, sometimes the only way to address these problems is through litigation.
Contractors and Commercial Real Estate Litigation
Contractors also face the potential for litigation when they provide work on commercial real estate. However, their claims are often very different from those who have engaged in a real estate transaction. Nonetheless, their disputes often involve the real estate itself because they can usually assert liens on the property that affect the value and sale of the real estate.
The Challenges of Litigation for Commercial Real Estate Disputes
Real estate transactions can involve both federal and state laws in some circumstances. It may also involve city and county rules and regulations. It is important to have a firm grasp on all of these various laws that may affect a commercial real estate transaction if you are considering asserting a lawsuit for a real estate dispute.
Some real estate disputes involve disagreements with a government agency, such as the local zoning board or land use agency. Cities and counties may require that you use specific permits as well. These entities can trigger a form of commercial real estate litigation that requires specific knowledge and expertise.
These agencies focus on local ordinances and requirements, and often have unique procedures that must be followed, should a dispute arise as well. Using an experienced attorney for these disputes will provide you the best opportunity for a favorable outcome.
Whether you have just bought a property or built a commercial building, if you have a concern that you think will lead to litigation for a commercial real estate dispute, it is in your best interest to speak with an attorney. Your lawyer will be able to help you determine your legal options and will help you take your case to court, if necessary. Contact KPPB LAW for more information.
