Buying or selling property in Illinois should be exciting, not stressful. However, real estate transactions can become complicated when legal issues arise. Understanding common real estate disputes and how to handle them can help protect your investment and give you peace of mind.
Real Estate Legal Issues: Examples
Contract Disputes & Breaches
Real estate contract disputes happen when either party fails to meet their contractual obligations. These issues can delay or derail your transaction.
Watch out for these common breach of contract examples:
- Sellers backing out of agreements
- Buyers missing payment deadlines
- Disagreements about included fixtures or appliances
- Changes to the property between contract and closing
- Seller failed to disclose known issues about the property
- Disputes about earnest money
- Missing or incorrect paperwork
Clear contracts protect both parties. Having a qualified lawyer review your contract before signing can prevent problems from arising.
Title Issues
One of the most serious examples of real estate legal issues is problems with property titles. Concerns surrounding the title of a property can threaten your ownership rights and must be addressed before closing.
Common title problems include:
- Undisclosed liens or mortgages
- Errors in public records
- Unknown heirs claiming ownership
- Forged documents in the property’s history
- Disputes with neighbors concerning property lines
- Missing signatures on key documents
Always get title insurance and have a lawyer who handles real estate disputes review your title search results. This helps protect you from expensive surprises after purchase.
Zoning & Land Use Concerns
Zoning laws affect how you can use your property. Understanding these regulations helps avoid costly mistakes.
Key zoning concerns include:
- Restrictions on building size in certain areas
- Rules about building additions
- In-home business regulations
- Zoning classifications (e.g. residential, industrial, and commercial)
- Historic district regulations
- Aesthetic zoning rules
- Environmental protection rules
Check local zoning laws before purchasing, especially if you plan on making changes to a property. Working with a qualified real estate lawyer can help you interpret these regulations.
Financing Problems
Buyers and sellers alike face money issues in all types of real estate transactions. Common financing problems include:
- Appraisal values below purchase price
- Last-minute changes to loan terms
- Problems with down payment funds
- Issues with seller financing
- Complications with co-borrowers
Work closely with your real estate agent, lender, and lawyer to avoid unexpected financing issues. They can help structure your transaction to protect your best interests.
Faults With the Property
Hidden property defects often lead to real estate disputes. When buying a property, watch for:
- Structural issues
- Water damage or mold
- Pest infestations
- Fire hazards
- Faulty electrical systems
- Code violations
- Plumbing problems
- Environmental hazards
Illinois law requires sellers to disclose known defects. However, some problems may not be obvious to you or the seller. A thorough home inspection and legal review of disclosure documents can protect you. Additionally, make sure that every agreement related to repairs or concessions is in writing.
Best Practices To Avoid Disputes
Follow these steps to reduce your risk of running into real estate issues when purchasing or selling a property:
- Get everything in writing
- Work with an attorney
- Keep detailed records
- Respond promptly to all requests
- Meet all deadlines
- Ask questions about anything unclear
- Express concerns promptly
- Follow up on pending items regularly
- Read every page of your contract and review all documents carefully
- Review closing documents in advance
When To Contact a Real Estate Attorney
Seek legal help immediately if you encounter any of the issues mentioned above or threats of litigation. Early legal intervention can prevent small issues from becoming major problems and save you money.
Trust Crosby Law Firm for Your Real Estate Needs
With 150 years of combined legal experience, you can depend on our team. At Crosby Law Firm, our real estate lawyers in Rockford understand the market and real estate law in Illinois. With a deep knowledge of local real estate regulations, we can handle all types of property matters.
Real estate transactions involve large investments. Don’t risk your property rights or financial security by addressing legal issues on your own. When you need a lawyer for real estate disputes, you can trust Crosby Law Firm. We will fight to protect your best interests.
Contact us today for a free initial consultation about your real estate matter. We’re here to help ensure all transactions proceed smoothly. Let our experience be your protection.
