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The Most Common Reasons for Real Estate Litigation


Originally posted on 02/23/2018

A model building sits on top of a contract that reads Real Estate Purchase Contract. Real estate litigation can happen to anyone, from buyers and sellers to real estate agents, there’s always a potential for a lawsuit. With a lot of money on the line, it’s crucial to have an experienced attorney who has a great understanding of Michigan’s real estate laws that can help those make educated and informed choices.

Here are three of the most common reasons for real estate litigation.

Breach of Contract

Whether it’s a purchase, sale agreement, or lease– it’s a form of contract. When a person signs a contract, there are terms and conditions disclosed in the contract. The terms can include the closing date, items included in the home, financing, and much more. If either party fails to comply with the terms of the contract, this could result in real estate litigation.

Breach of Duty

A real estate agent should always have their client’s best interests at heart during the selling or buying process. However, negligence that’s either intentional or not, could result in real estate litigation. If the realtor doesn’t take the appropriate action, then the buyer or seller can file a lawsuit.

Undisclosed Problems

If the seller is aware of an issue with their property, they must disclose it. Examples of uses are leaks, mold, non-permitted home improvements, and more. If the person buying the property can prove that the seller or agent had prior knowledge of the situation but didn’t disclose it, it can result in real estate litigation. For these disputes, the information that is gathered during the inspection and closing documents is very important.

Ensure Your Real Estate Disputes Get Handled Appropriately by Working with Experienced Attorneys

At Aldrich Legal Services, our attorneys have litigated literally thousands of cases. Our founding attorney, Brad Aldrich, is a knowledgeable real estate lawyer and skilled trial lawyer with more than 21 years of legal experience. He is a licensed real estate broker and owns multiple commercial properties.

From standard contract disputes to complex commercial property litigation that requires a high level of legal sophistication, you can be confident that your legal matter is in good hands. Give our team a call today.

FAMILY LAW 88: The trial court found that the children did not have an established custodial environment with defendant because, before the separation, he did not have a large role in the children’s lives.

The trial court credited plaintiff’s testimony that, before the parties’ separation, defendant spent minimal time helping to care for the children, so its finding that the children would not have looked to defendant for guidance, discipline, the necessities of life, and parental comfort during that time was not against the great weight of the evidence.

REAL ESTATE 89: RM had not included any language in the deed providing that the property was a joint tenancy with full rights of survivorship, the property instead became a tenancy in common.

RM drafted the deed without seeking counsel and mistakenly believed that, if either she or FK died, the property would fully pass to the surviving tenant. FK’s will provided that if his wife predeceased him—which she did—the personal representative of his estate should sell any residual property that he owned and divide the cash proceeds equally among his surviving children.

FAMILY LAW 83: A trial court can terminate a parent’s rights and permit a stepparent to adopt a child.

A trial court has discretion to terminate a parent’s rights and permit a stepparent to adopt a child when the conditions of MCL 710.51(6) are met. MCL 710.51(6)(b) requires the petitioner to establish that the other parent had the ability to visit, contact, or communicate with the children, and substantially failed or neglected to do so for a period of two years.

PROBATE 53: The trust agreement included an Incontestability Provision.

A settlor’s intent is to be carried out as nearly as possible. Generally, in terrorem clauses are valid and enforceable. However, a provision in a trust that purports to penalize an interested person for contesting the trust or instituting another proceeding relating to the trust shall not be given effect if probable cause exists for instituting a proceeding contesting the trust or another proceeding relating to the trust.

FAMILY LAW 82: Court stated it would terminate the personal protection order (PPO) after the parties present documentation of the initiation of the divorce proceedings.

However, the trial court concluded that these matters should, in fact, be in the province and the jurisdiction of the Family Division and in that respect, having issued a personal protection order, the Court stated it would terminate the personal protection order after the parties present documentation of the initiation of the divorce proceedings.

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