Homebuyers Beware — Most Common Real Estate Complaints That Lead to Litigation

/ Buyer's Edge Company, Inc. | BuyersAgent.com/

Homebuyers Common Real Estate Issues
That Can Result in Legal Disputes

The number one way to avoid legal problems when buying real estate is to hire a Buyer's Agent to guide you through the entire home buying process. It doesn't matter if you're a first-time homebuyer, a high-end luxury homebuyer, or a buyer looking to downsize. Real estate is evolving and changing quickly, as seen by reduced commissions in the last few years and significant decisions made by DOJ | NAR. Whether you're a homebuyer or seller, navigating the complexities of a real estate home purchase demands superior guidance from a top-notch Realtor. For that reason, homebuyers should hire a dedicated team of Exclusive Buyer Agents who specialize in providing their home buying expertise and offering insights on reducing the risks of the most common complaints leading to real estate litigation.

How Exclusive Buyer Agents Help Homebuyers Avoid These Legal Pitfalls When Buying a Home in the DMV

Key Issues When Buying a Home:

1. Neglecting to Disclose Construction and Property Defects and Conditions:

Selling a property without disclosing construction or property defects can lead to legal battles. While previewing or showing properties to buyer clients, a buyer's agent worth their salt looks for and points out any defects or potential issues with the home or condo. 

Some Examples Include:

  1. Older septic systems or those lacking permits can lead to costly problems.

  2. Leased solar panels can create complications when buying a property.

  3. Sometimes, Listing Brokers fail to disclose known adverse conditions, such as wet basements, water intrusion, flood zones, radon, and mold. A thorough buyer's agent should be on the lookout for these environmental conditions.

  4. Lead paint or asbestos found inside or on the home's exterior is an environmental concern and expense a buyer must be aware of.

  5. Sellers’ home renovations and undisclosed DIY projects without permits can impact property value and legality.

  6. Misleading MLS photos and property descriptions can misrepresent property features, leading to home buying disasters.

  7. Age, quality, and condition of Roof, HVAC, Hot Water Heater, Appliances, Electric Panel, Windows, Hardwood Floors, Carpet, Chimney and Flue, Sump Pump, etc.

Our experienced real estate buyer's agents work with home inspectors and homebuyers to review and analyze property disclosures, MLS descriptions, and inspection reports to uncover and better understand a home's defects and avoid undisclosed surprises after settlement. We advocate for our clients, ensuring they receive fair treatment.

2. Breach of Contract:

Breach of contract often causes problems when buying a home. Miscommunications and missing deadlines or contract clauses can lead to disputes; your buyer's agent will keep you focused on all the critical contract details and deadlines, avoiding these costly mistakes. Homebuyers need a buyer’s agent who thoroughly completes, reviews, and explains the real estate contract to protect their best interests throughout the transaction process. Understanding the buyers' and sellers' contractual obligations will benefit the homebuyer if problems arise or the seller fails to perform. 

3. Real Estate Agent's Breach of Duty or Negligence:

Real estate agents have a fiduciary duty to act in their client's best interests. When buyers hire Exclusive Buyer's Agents, whose real estate brokerage solely represents homebuyers, they can sidestep many of the inherent conflicts of interest associated with dual agency, which have troubled the real estate industry for decades, by choosing to work with an agent who exclusively serves buyers and never represents sellers. Cases involving negligence or breach of duty by agents require careful and costly legal navigation. Homebuyers must often hire attorneys to hold agents they believe did not represent their best interests accountable for duty violations.

4. Property Boundary Disputes:

Unclear property boundaries can lead to protracted legal disputes. Expert Exclusive Buyer's Agents (EBAs) often rely on technology like the LandGlide app for property line information when assisting homebuyers in Washington, DC, Maryland, and Virginia. Using advanced technology, buyers avoid basing decisions on unreliable cues like grass maintenance or fence placement to approximate property boundaries. MLS listings often lack this vital data, prompting our buyer agents to turn to LandGlide. With its GPS feature, we can swiftly pinpoint approximate locations and access parcel data from over 150 million property records across 3,000+ counties. This App empowers EBAs to effectively educate buyer clients before making offers, and answering the important questions first, ensuring the most informed decisions about their chosen homes.

Before finalizing the sale, buyers can avoid property disputes by performing a staked boundary survey before purchasing the property. Apps like LandGlide are not to be used in place of a metes and bounds or boundary survey. Understanding your property rights before settlement and working through any unexpected discrepancies will give homebuyers peace of mind.

5. Defective Property Repairs:

Inadequate repairs can potentially spoil real estate transactions and lead to disputes. Our expert buyer's agent and home inspectors, along with the buyers, will analyze repair agreements and inspection reports to identify potential discrepancies. Before settlement, the Exclusive Buyer's Agent advocates for their clients and will seek appropriate remedies for faulty repairs. If need be, the proper amount of repair funds can be held in escrow after the settlement, and the remaining funds will be released back to the sellers by the title attorney after a licensed professional has resolved the repair issue to the buyers' satisfaction.

6. Undisclosed Property Easements:

Not revealing and understanding easements can complicate property transactions and result in disputes. Buyer agents carry out research to uncover any easements that could impact a client's property rights and worth. They offer analysis and guidance on how a specific easement might influence the home's resale value as part of their effort to educate and safeguard their client's best interests.

7. Real Estate Title Defects:

Title defects can disrupt property transactions and expose buyers to uncertainties. Our buyer agents refer homebuyers to expert title attorneys, allowing them to choose who they wish to engage with for this task. Notably, the attorneys and mortgage lenders we recommend are independent of our Exclusive Buyers Broker Company, which distinguishes us from many traditional real estate firms in the DMV area who own or affiliate and share fees with these related firms.

Settlement firms must conduct title searches to identify defects or encumbrances affecting the property's title without any conflicts of interest. They can assist buyer clients with the title clearance process, handle any issues that arise, and ensure a legally secure home buying experience.

8. Issues With New Home Construction Contract:

New Home construction disputes often stem from contract breaches, leading to delays and financial setbacks for buyers. If these problems occur during construction, our buyer's agents—equipped with knowledge of construction contracts and potential pitfalls—will stand up for their clients' rights. They will work to address contract breaches and minimize any impact on their home purchase.

9. Challenges With Condominium Documents:

Condominium disputes after closing usually require expensive specialized legal assistance. That's why we strongly recommend that our buyers carefully review condominium documents within the contract timelines. Understanding how bylaws, fees, and assessments may impact them is crucial. Should any concerns arise, we can connect them with an attorney versed in condominium law and association regulations.

In Summary:

In the DMV area, buyers can rely on our Exclusive Buyer's Agents' proactive expertise for their real estate purchasing journey. Buyer's Edge has a team of agents that tailors home searches to meet your needs and guides you through the process of purchasing real estate. Feel free to give Stephen Carpenter-Israel, Broker/President of Buyers Edge | BuyersAgent.com, a call today if you need assistance. We're here to assist you in reaching your real estate objectives, protecting your interests, and making your dream home purchase journey smooth and successful.