Addressing and avoiding common real estate disputes in California

March 11, 2014

Addressing and avoiding common real estate disputes in California

Article provided by Enterprise Counsel Group, A Law Corporation
Visit us at http://www.enterprisecounsel.com

While Bloomberg reports that U.S. homebuyer and homebuilder confidence slumped to record lows during the past number of months due to horrible winter weather, California avoided much of the downturn in activity. In fact, while much of the country sat twiddling their thumbs during February, Southern California buyers were busy bemoaning the lack of inventory.

This is good news for sellers and businesses in the construction and real estate industries in California. Buyers, who cannot find what they want on the market, turn to real estate companies to design and build what they need. The industry is not without its hiccups, however, and issues can arise that may require legal assistance.

Common issues

No matter what stage of building, buying or developing real estate you are involved in, a few issues commonly give rise to real estate disputes, such as:
-Defects: Building materials, appliances or installation practices are just a few examples of items or processes that are sometimes defective. While some defects are readily apparent, some do not reveal themselves until much later.

-Delays: Whether due to acts of Mother Nature, worker illness or shipment mix-ups, delays happen and should be expected to some degree. Often, the party responsible can be assigned liability or penalties for delays that are avoidable. However, many delays are out of the control of the parties to the process and every real estate contract should include provisions addressing what should happen if a delay occurs.

-Disagreements: Not everyone agrees all the time and differences in expectations or understanding of what a contract clause actually means can give rise to disagreements. Every business deal should outline how the parties intend to address disputes.

Urban renewal efforts in California have also given rise to recent legal issues. Redevelopment was commonly used to spruce up neighborhoods and commercial areas across the state. Unfortunately, California shut down redevelopment agencies in 2011 in an effort to funnel money elsewhere. Forward-thinking cities held onto what money they could to continue development efforts, but some state officials are claiming those funds were wrongfully taken.

According to NPR News, about 150 California cities transferred funds into city coffers before the agencies were closed down. The state is arguing that it should retain control of the more than $3 billion at stake.

Arbitration, mediation and litigation are all avenues used by businesses and individuals who seek relief from disputes and disagreements. No matter which option is available, legal counsel should be sought.

A lawyer can help

If you are facing -- or wish to avoid -- potential business disputes, seek the counsel of an experienced litigation attorney. A lawyer knowledgeable about issues of real estate, business law, corporate matters and contract disputes can help.