Legal disputes involving buying or selling property can arise whether you’re a real estate pro with years of experience or are buying a home in Canada for the first time. But if you’re aware of some of the most common conflicts, you may be able to avoid them. Seeking guidance from real estate lawyers in Edmonton can, of course, be helpful, too.
Below are 3 of the most common disputes involving real estate in Canada and what you can do to avoid them:
1. Property title
For any real estate owner, possessing a clear property title is crucial to avoiding other parties claiming ownership or legal rights to the property.
Before buying any property, be sure to review the history of the property and every document relating to ownership, such as surveys, deeds, liens, mortgages, and records of property taxes. You should also take the time to check whether anyone else may be able to claim ownership of the property or legal rights to it through a process known as adverse possession (a real estate lawyer can explain this to you in more detail).
However, no matter how diligent you are, issues can still arise, and boundary and fraud disputes surrounding the title are common.
Boundary disputes
These happen when legal boundary lines are unclear or are being disputed by a neighbour.
Fraud disputes
These arise when titles are illegally obtained, through forged documents, for example.
In both instances, a good real estate lawyer is essential, and a trip to court may also be necessary. To reduce the risk of these disputes, you may wish to purchase title insurance, something that your lawyer can talk you through.
2. Property conditions and disclosure
After closing a property sale, should serious issues be uncovered with respect to the condition of the property that the seller should have disclosed at the time of purchase (and that you had been unable to identify during a prior property inspection), a real estate lawyer may recommend that you take legal action.
Should a seller neglect to disclose any defects of a serious nature that could impact the property’s value or how the buyer plans to use it, compensation may be sought for repair costs. That said, failure to disclose is notoriously tricky to prove, and the onus is on the buyer to check the condition of the property prior to purchase.
To resolve such disputes, you may negotiate with the buyer concerning the cost of repairs or compensation directly, use a mediator to help you find a solution that both parties can agree on, or file a lawsuit to reverse the sale and recover any damages. Note that lawsuits can be costly and stressful, so they should always be a last resort action.
3. Problems over tenancy
It’s vital that, as a landlord, you make yourself aware of all of your rights and responsibilities when it comes to tenancy disputes. In Canada, the Residential Tenancies Act, or RTA, provides governance for the majority of residential tenancies and, under it, landlords are required to give adequate notice to tenants before they enter the unit, as well as make sure that it’s in a livable condition.
From failure to pay rent to property damage, there can be many causes of tenant issues and disputes, but these are the most common. If a tenant hasn’t paid their rent, they must be issued with a vacate notice, which gives them a reasonable period of time to either pay the rent or vacate the property. Noncompliance allows you to evict them following the termination of their tenancy.
When a rental property is damaged in a manner that goes beyond general wear and tear, tenants can legally be charged for this by their landlord, but before withholding the security deposit, enough notice must be given, as well as evidence of the damage. Failure to do so may result in you needing urgent help from property lawyers in Edmonton.
Thorough screening of prospective tenants, regular inspections of the property, and dealing with issues promptly and appropriately can help landlords avoid tenancy disputes.
Buyers, sellers, and landlords may not always be able to avoid certain real estate disputes, but armed with the right knowledge and with backup from local real estate lawyers, most disputes can be settled, if not amicably, then at least within the confines of the law.
