Real Estate Litigation: Common Disputes and How to Avoid Them

23 December 2025

Real estate can be a goldmine of opportunities, but it’s not without its challenges. One of the biggest nightmares for property buyers, sellers, landlords, and tenants is getting entangled in legal disputes. Real estate litigation is expensive, time-consuming, and emotionally draining.

The good news? Most disputes can be avoided with the right knowledge and proactive measures. In this article, we’ll break down the most common types of real estate disputes and how you can steer clear of the courtroom.

What is Real Estate Litigation?

Real estate litigation involves legal disputes related to property, whether it's between buyers and sellers, landlords and tenants, or contractors and developers. These disputes can arise due to contract breaches, misrepresentations, boundary disputes, or other issues. When negotiations or mediation fail, litigation becomes the final step where a court intervenes to resolve the matter.

While attorneys play a crucial role in real estate litigation, prevention is always better than cure – and much cheaper, too!

1. Breach of Contract

One of the most common real estate disputes stems from a breach of contract. Every property transaction comes with legally binding agreements, whether it’s a sales contract, lease agreement, or construction contract.

Causes of Breach of Contract:

- Failure to meet deadlines for closing
- Undisclosed property damage
- A party backing out of the deal without a valid reason
- Misrepresentation of terms

How to Avoid It:

- Always have a clear, detailed contract that outlines responsibilities, deadlines, and penalties.
- Work with a legal expert to review contracts before signing.
- Communicate openly to resolve concerns before they escalate.

A contract is like a roadmap – if you ignore the signs, you’ll end up lost (or in court).

2. Boundary Disputes

Ever had a neighbor suddenly claim a strip of your yard? That’s a boundary dispute in action. Property line disagreements are common, especially when fences, driveways, or landscaping come into question.

Causes of Boundary Disputes:

- Vague or outdated property deeds
- Previous owners expanding their property unknowingly
- Conflicting land surveys

How to Avoid It:

- Always get a professional land survey before purchasing property.
- If buying a home, check historical records to confirm boundaries.
- Have open discussions with neighbors before making any structural changes near property lines.

A little research upfront can prevent a massive headache (and legal bills) later.

3. Landlord-Tenant Disputes

The landlord-tenant relationship can be tricky. It’s no surprise that rental agreements often lead to legal disputes, forcing both parties into costly litigation.

Common Issues:

- Non-payment of rent
- Disagreements over security deposits
- Eviction proceedings
- Property maintenance disputes

How to Avoid It:

- Draft a comprehensive lease agreement that protects both parties.
- Maintain clear communication about rent, maintenance, and deposits.
- Conduct routine inspections to address issues before they become major problems.
- Follow local landlord-tenant laws to avoid wrongful evictions.

A solid lease agreement can serve as a safety net, preventing conflicts before they spiral out of control.

4. Title Disputes

Imagine buying a dream property only to find out later that someone else claims ownership. That’s a title dispute—a legal mess that can delay or even cancel a transaction.

Causes of Title Disputes:

- Undisclosed heirs challenging ownership
- Errors in public records
- Fraudulent real estate transactions
- Unpaid liens on the property

How to Avoid It:

- Always conduct a title search before purchasing a property.
- Get title insurance to protect against unforeseen claims.
- Work with a reputable real estate attorney or title company.

Skipping a title search is like driving blindfolded—you don’t know what dangers lie ahead.

5. Construction and Zoning Disputes

If you’re building or renovating property, construction and zoning disputes can throw a wrench into your plans. These disputes often involve local governments, contractors, or neighbors.

Common Construction Disputes:

- Delayed or defective construction work
- Miscommunication over project scope
- Violation of zoning laws

How to Avoid It:

- Hire licensed, reputable contractors with strong track records.
- Have a written agreement specifying project timelines and costs.
- Verify zoning regulations before starting construction.

Ignoring zoning laws is like trying to fit a square peg into a round hole—it won’t end well.

6. Real Estate Fraud

Real estate fraud is a growing concern, with scammers tricking buyers, sellers, and even renters. From forged documents to fake listings, fraud can lead to financial ruin.

Types of Real Estate Fraud:

- Fake property listings
- Wire fraud during closing
- Forged documents
- Title fraud

How to Avoid It:

- Work with trusted real estate agents and attorneys.
- Never wire money to unverified accounts.
- Verify property ownership before making payments.

If a deal seems too good to be true, it probably is. Trust your instincts!

7. Easement Disputes

An easement gives someone the right to use a portion of your property for a specific purpose. This could be a shared driveway, utility access, or pathway. However, if easements are not clearly defined, disputes can arise.

Causes of Easement Disputes:

- Unclear property rights
- Unauthorized use of land
- New developments blocking designated easement areas

How to Avoid It:

- Check property records for existing easements before purchasing.
- Clearly define easement terms in legal documents.
- Negotiate easement rights with all involved parties.

Easement disputes are like uninvited guests—if you don’t set boundaries early, they’ll overstay their welcome.

Final Thoughts

Real estate litigation can be a nightmare, but most disputes are avoidable with careful planning and legal due diligence. Whether you’re buying, selling, renting, or building, taking proactive steps can save you thousands in legal fees and months of stress.

At the end of the day, knowledge is your best defense. By staying informed and working with professionals, you can navigate the world of real estate with confidence and avoid unnecessary litigation.