Buyers and sellers alike typically seek timely resolution of real estate disputes, and our attorneys can assist you with issues that might arise during transactions in Rockville.
Appraisal issues might come up instantly in a real estate transaction if a buyer realizes the property’s market value is lower than the purchasing price they agreed to. In these situations, buyers should get properties reappraised during escrow, and our attorneys may negotiate a new price with sellers. Title disputes surrounding unknown liens or property easements could also change a purchaser’s opinion. If sellers threaten to keep earnest money deposits in these situations, our lawyers may be able to get it back by showing an arbitrator that the seller failed to uphold their part of the contract. Not all disputes are resolved through arbitration; some might end sooner during mediation or informal negotiations between involved parties.
Call the real estate transaction and disputes lawyers of the Heyman Law Firm at (410) 305-9287 for a free and confidential case assessment.
Examples of Common Disputes in Rockville, MD Real Estate Transactions
Disputes in real estate are common and might arise at any point during the transaction, and sometimes concern contradicting property appraisals or title issues. When renting commercial properties to tenants, landlords might run into issues with tenants regarding lease terms or tenant responsibilities.
Appraisal Disputes
Transactions for large commercial properties involve huge sums of money, so ensuring accurate appraisals is crucial for purchasers. Errors in the current owner’s appraisal report or glaring differences in the property’s appraisal compared to similar properties in the area are reasons to raise appraisal disputes. Getting the property reappraised in these situations is important. If the property appraises much differently than the listing or purchasing price, our lawyers can renegotiate a new purchasing price with the seller. The property’s market value may determine your financing for the transaction, so it must be accurate.
Title Disputes
Commercial properties might change ownership more often than residential properties, increasing the potential for title issues causing problems during a transaction. Boundary disputes, unknown property easements, and outstanding liens on the property could give buyers pause. We can raise title issues with the seller after learning of them. When title disputes cannot be resolved without jeopardizing a buyer’s financial security, as is often the case with unknown property liens, leaving the sale may benefit a purchaser. Our lawyers will seek to get your earnest money back in such circumstances as the seller should not have grounds to keep it.
Commercial Landlord-Tenant Disputes
In commercial landlord-tenant relationships, disputes might arise regarding the type of lease used, as well as the costs the tenant is responsible for. Commercial leases typically last many years; over that time, issues might arise, and relationships between landlords and tenants might change. Our real estate transaction and disputes lawyers can help commercial landlords address disputes with tenants regarding maintenance concerns, lease renewals, or other matters. We can help property managers and landlords identify the types of leases that offer the most protection and hold tenants responsible for more expenses on top of the base rent.
Recouping Earnest Money Following Real Estate Disputes in Rockville, MD
As a sign of good faith, buyers give sellers earnest money at the start of a real estate agreement. This deposit represents the buyer’s intention to purchase the property. If the buyer changes their mind, the seller could potentially keep that earnest money.
That said, there are ways for buyers to recoup their deposits, and our attorneys can see how they apply to your case. For example, purchasers can get earnest money back when they cite a contingency in the contract as their reason for leaving the agreement. This often happens when sellers do not disclose material property defects that would change the property’s value or the buyer’s interest in the property. We can write inspection contingencies into real estate contracts, and if a property fails inspection, buyers may walk away and get their earnest money from escrow accounts. Good faith deposits are held in an escrow account before closing. If the seller argues they should get the earnest money, we can address the issue in mediation or arbitration.
Preparing for Real Estate Dispute Negotiations in Rockville, MD
To prepare for negotiations, we will start by identifying the root of the issue and assessing the other side’s position. Sellers eager to have a transaction go through might agree to buyer-favorable concessions during negotiations. For example, sellers might agree to make the necessary repairs to address concerns found during inspections or give buyers a credit to cover the cost of repairs.
If negotiations progress to arbitration, we can submit evidence supporting our position. For example, suppose the issue is based on an inaccurate property appraisal. In that case, we can present the arbitrator with a new report from a reputable appraiser and reports showing the market value of comparable properties in the area. When preparing for negotiations, our lawyers may review various documents, such as the real estate contract, title documents, inspection reports, and other relevant information.
Disputes in real estate are often resolved without going to court. If informal talks between the purchaser and seller do not resolve the matter, it may progress to mediation. With that comes a third-party mediator. This individual will aim to facilitate the negotiations between involved parties and help them reach a solution. Arbitration may be the next step. This process also involves an unbiased third party, though the arbitrator decides on the matter instead of encouraging those involved to resolve it largely amongst themselves. There are further differences between arbitration and mediation, such as that the arbitrator’s findings are typically final, much like a judge’s.
Call Our Rockville, MD Attorneys for Help Today
Call our real estate transaction and disputes lawyers at (410) 305-9287 for a free case analysis from the Heyman Law Firm.