Common Issues That Arise During Real Estate Transactions

Real estate is one of the best investments. However, many issues can arise when it comes to real estate transactions. In a perfect world, all real estate transactions would go smoothly. However, problems can occur before, during, or after a real transaction. Whether you are considering purchasing or selling property, you need to be aware of the issues that can arise during a real estate transaction. Below are some of the potential problems that can occur during a real estate transaction.

A Mistake in the Sales and Purchase Agreement

Before purchasing or selling real property, you and the other party must sign a sales and purchase agreement (SPA). A SPA is a binding legal document that obligates a seller to sell a property and a buyer to buy a property. If a sales and purchase agreement contains an error, issues may arise.

If there is a mistake in the SPA and both parties are willing, the issue can be resolved by amending the agreement. On the other hand, if parties are unwilling, a sales and purchase agreement mistake can result in one party backing out of the agreement.

In order to avoid problems, it is best to seek professional guidance when drafting a SPA. It is best to review a SPA before signing. A qualified real estate attorney can help you prepare a SPA or review an already-drafted agreement.

Failure to Disclose

Sometimes, a real estate agent or seller may fail to disclose information that could chase away buyers. If a real estate agent or seller fails to disclose crucial information and the buyer finds out, the buyer has the right to take legal action against the seller or real estate agent. For example, information about faulty electrical wiring, previous flood or fire damage, or a recent termite infestation needs to be disclosed to potential buyers.

Breach of Contract

Another issue that can arise during a real estate transaction is a breach of contract. A breach of contract can occur if a buyer or seller fails to meet one or more than one of their obligations under the sales and purchase agreement. The following are some of the ways breaches can occur in real estate contracts;

• Failure to deliver the title deed
• Missing a payment date
• The property fails to pass its inspection

Communication Problems

Sometimes, issues arise between sellers and real estate agents. Poor communication is a common problem between sellers and real estate agents. A real estate agent may fail to keep the seller properly updated on crucial issues, such as if a buyer is interested in the home or an open house is scheduled.

Legal Issues

Legal issues might arise during a real estate transaction. An example of a legal matter that may occur during a real estate transaction is a dispute over the boundary line of a property. It is best to consult a qualified real estate attorney when such issues arise.

Contact Us for Legal Help

Because purchasing or selling real estate is one of the largest transactions you will ever make, it is best not to go at it alone. Contact our skilled San Francisco real estate attorneys at SAC Attorneys LLP for help with a real estate transaction.