A real estate dispute is a type of legal conflict that involves real property. Real property is property that is affixed to a piece of land, in contrast to personal property, which can be moved.
Real estate disputes may involve properties that are worth large sums of money, take a long time to resolve, and involve numerous financial and court resources. Because of this, many individuals often seek to use alternative forms of dispute resolution, which will be discussed below.
The laws of each state may vary regarding inheritance laws. Inheritance laws are the laws that govern how individuals receive their share of assets in addition to which relatives have the statutory right to claim an inheritance if they are not expressly included in the will.
Because of the large amounts of time and resources that real estate disputes related to family inheritance may take, it is important for an individual to take steps to try and keep these issues from arising in the first place.
What Are the Common Types of Real Estate Disputes?
There are numerous different types of real estate disputes, including:
- Boundary disputes: These may involve disagreements among neighbors regarding the location of a property line;
- Landlord-tenant disputes: These may involve a dispute over:
- Who is responsible for damage or repairs to the property;
- Whether there was sufficient damage for the landlord to retain the tenant’s security deposit; or
- Issues regarding eviction from a property;
- Zoning issues: These involve whether the property is being used for the same purpose it was zoned, what zoning ordinances the town has in place, and whether the owner needs to apply for a variance;
- Homeowner association responsibilities: This may bring up questions of whether the HOA is responsible for maintenance and upkeep of some elements of the neighborhood.
- Utility easements: A homeowners may not realize whether or where utility easements are located on their property; and
- Ownership disputes: These bring into question who is the rightful owner of a property.
These issues may arise when a beneficiary inherits a piece of property that is subject to one of these disputes. Other types of disputes may arise related to inheritance, such as a beneficiary disputing who should inherit the property.
What Causes Real Estate Disputes?
There are many different reasons why real estate disputes may arise, as each piece of land and each family is unique. Inheritance laws and regulations may cause a dispute if a piece of property is passed down according to a state’s intestate succession laws instead of through a valid will if a beneficiary believes it went to the wrong person.
Another issue that may cause a real estate dispute is emotional factors within a family. This may involve the sentimentality of a piece of property or a potential beneficiary believing they were told they would inherit the property and it goes to another individual.
Many real estate disputes, just as any other type of dispute, are caused by misunderstandings and lack of communication between family members. The most important step an individual can take to avoid real estate disputes is to create a clear estate plan for all of their property and share with their loved ones what they can expect to inherit.
How Can I Identify Potential Real Estate Dispute Issues?
It may be possible to identify a potential real estate dispute and resolve it before the property is inherited. If the dispute involves the common dispute types listed above, the owner can do their best to resolve whatever issue the property has before they pass away.
An individual may become aware of a dispute if they receive notice from a neighbor or a government entity that there is an issue, such as property boundary issue or a zoning issue. As far as avoiding potential real estate dispute issues with family inheritance, the most important steps an individual can take involve estate planning and creating a valid will to pass down their property.
What Are Some Legal Solutions for Real Estate Disputes?
There are many different potential legal solutions for a real estate dispute. The first is to try and negotiate a solution, as lawsuits are expensive and time-consuming.
If an individual cannot resolve their dispute outside of court, they can hire an experienced real estate attorney and file a lawsuit in the court where the property is located. A legal action that involves real property has to be brought in the state where the land is located under the local action doctrine.
Federal courts apply this same doctrine. If a lawsuit involves property that is located in different districts of the federal court system, a lawsuit may be brought in any of the districts in which any of the properties are located.
What About Mediation and Alternative Dispute Resolution?
There are also other ways to try and resolve a real estate dispute, such as alternative dispute resolution. ADR, or alternative dispute resolution, involves ways to address and settle disputes outside of a court and its adversarial and traditional atmosphere.
The two most common types of ADR are arbitration and mediation. Arbitration is similar to an informal trial, overseen by a neutral third party, an arbitrator.
The arbitrator hears each side and issues a decision that the parties may have agreed to be binding or non-binding. If it is binding, the decision can be enforced by a court and is considered final.
Mediation also uses a neutral third party, or mediator, but this mediator cannot force the parties to agree and is not allowed to decide the outcome of the dispute. The mediator works with the parties to reach a solution that is made mutually.
Typically, mediation agreements are non-binding. In many cases, courts may require the parties to attend mediation before they can go to trial.
There are numerous benefits to mediation. Mediation is completely confidential, costs less, and is faster than a trial.
Additionally, because it is non-binding, the parties still have the right to pursue litigation following the mediation process.
What Lessons Can Be Learned from Past Disputes?
An individual can learn many lessons from past cases and disputes, such as likely outcomes and possible consequences. In most situations, both sides can reach an agreement without having to have a formal trial.
If an individual has any concerns or questions regarding past disputes in their area that are similar to their own, they should consult with an attorney who can advise them based on their experience.
How Can I Prevent a Real Estate Dispute?
There are proactive steps individuals can take to avoid real estate conflicts. Clear communication and transparency are important steps, as they help avoid potential misunderstandings between family members.
As discussed above, having a well-drafted and valid estate plan is one important way to avoid future disputes.
What Is Some Advice for Heirs and Beneficiaries?
If an individual is a potential beneficiary or a beneficiary, it is important to plan for the future as well as any potential disputes that may arise. There may be tax implications related to the property that an individual inherits.
If an individual does not wish to inherit a certain property or they do not believe they could afford the taxes, they should communicate that to the loved one who may pass it to them so they can revise their estate plan accordingly. It is important to have open communication regarding these issues so that everyone involved is aware of the situation and future disputes can be avoided.
In addition, an individual may also be aware of family members who may have an issue with their inheritance or may want to dispute it. In these cases, it is important for an individual to consult with an attorney as early as possible to determine what types of records they should keep and how they can prepare for a potential dispute.
Should I Contact a Lawyer?
It is essential to consult with a family lawyer whether you have a small estate or a large estate. You can explain your situation and any potential or active property disputes you may have, which your lawyer can help you resolve.
In addition, your lawyer will help you draft an estate plan that meets your needs as well as avoids future disputes between your loved ones.
