What Are the Most Common Real Estate Litigation Cases?
What Are the Most Common Real Estate Litigation Cases?
Real estate litigation involves a variety of disputes that frequently lead to legal action. Understanding the most common real estate lawsuit types can help attorneys and clients prepare stronger cases. Below are the primary categories of real estate litigation cases where expert witness testimony is often critical:
- Breach of Fiduciary Duty in Real Estate : Breach of fiduciary duty cases arise when agents or brokers fail to uphold their legal responsibilities, including loyalty, confidentiality, and disclosure. These disputes often involve conflicts of interest, undisclosed relationships, or actions contrary to client interests.
- Failure to Disclose Material Facts : Litigation frequently occurs due to failure to disclose known property defects, environmental hazards, or other material facts. Courts look closely at whether disclosures were complete, accurate, and timely, impacting buyer decisions and liability.
- Real Estate Contract Disputes : Contract disputes are among the most common real estate lawsuits. Issues such as ambiguous terms, unmet contingencies, earnest money conflicts, and allegations of fraud often lead to claims of breach of contract or misrepresentation.
- Broker Supervision and Agent Misconduct : Brokers can face liability for inadequate supervision when agents engage in negligent, unethical, or illegal conduct. These cases often examine hiring, training, and oversight practices within the brokerage.
- Fair Housing Violation Claims : Fair housing lawsuits address discriminatory practices in selling, renting, or advertising properties Common claims include steering, refusal to rent or sell, or discriminatory marketing, violating federal and state fair housing laws.
- Real Estate Fraud Cases : Fraud claims involve intentional misrepresentation, concealment, or deception related to property conditions, financing, or contractual obligations. Proving real estate fraud requires detailed analysis of evidence and intent.
- Broker Malpractice : Broker malpractice lawsuits allege failures in professional duties such as inadequate supervision, failure to enforce brokerage policies, or poor risk management leading to client harm or financial loss.
- Due Diligence Failures : Failure to conduct proper due diligence—such as verifying property details, zoning compliance, or title issues—can lead to claims of negligence or breach of duty in real estate litigation.
- Agency Relationship Disputes : Disputes over agency relationships often involve undisclosed dual agency, failure to obtain informed consent, or misunderstandings about representation, which can expose parties to liability.
