These lawsuits involve different parties like the homeowner, who is none but the borrower in a mortgage agreement, the mortgage company, who is mostly the lender, secondary or tertiary mortgage companies, government bodies, primarily for land use or zoning disputes and so on. There are different types of lawsuits that real estate agents have to face often, and those affect the career of the real estate agents awfully. Hence, it is crucial agents should know about different types of lawsuits so that they can take the right steps at the right time to avoid these and, ultimately, save their career from getting scarred.
Dilip Barot, one of the most successful real estate entrepreneurs of America, believes there are three common types of a lawsuit filed against real estate agents when it comes to real estate investing. They are breach of contract by the buyer, breach of contract by the seller, and non-disclosure of significant property deficiency. Dilip Barot said each of these different types of lawsuits has ramifications for each side of the lawsuit.
Let’s explore
- Breach of Contract by the Seller: If the owner of any property decides not to sell their property that is under the contract to a buyer, the seller calls it a breach of contract. When contracts are signed in good faith, the buyer is supposed to file a breach of contract lawsuit against the seller. Dilip Barot says there is no significance of the reason why the seller decides not to sell; the only issue is if the terms of the contact were not implemented when it comes to a lawsuit.
- Breach of Contract by the Buyer: The next type of lawsuit that is very common in the real estate industry is the breach of contract by the buyer. In this case, the inspection grace period for the buyer expires, their deposit can’t be refunded, and they still decide not to buy the property. However, any loss that has occurred to the buyer is limited to just the amount that was placed in escrow.
- Non-Disclosure of Property Deficiency: Dilip Barot says this type of lawsuit is a prevalent one in such cases as when the former property owner doesn’t disclose to the buyer any significant deficiencies in the property. In such cases, buyers often complain that if they had known about it before, they wouldn’t have purchased the property in question. Many times, the former owner is allowed to fix, pay for, or somehow make the deficiencies the property right.
Are you a real estate agent? Do you know about the above three common types of lawsuits?
Make sure you are leaving no stone unturned to avoid and overcome these in your career and grow remarkably.
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