MYTHS AND LITIGATION IN REAL ESTATE
Real estate law
28 Apr
Several myths surrounding real estate law can create more confusion, especially when it comes to ownership, contracts, and what your agent actually does and litigation can help by providing a formal legal process to resolve disputes, enforce rights, and ensure accountability.
These are some of the common myths and the Facts in Real Estate
Myth: You can wait to get mortgage pre-approval until after you have found your dream home.
Reality: Getting pre-approved early gives buyers a competitive edge, showing sellers you are financially ready to move forward - basically, it’s like shopping with a loaded wallet.
Myth: All real estate agents are the same, or going solo gets you a better deal.
Reality: A skilled agent brings more to the table than just unlocking doors - they guide you through complex contracts, know the market inside-out, and can flag red flags faster than a home inspector with x-ray vision.
Myth: Skipping the agent saves you money.
Reality: Even though the seller usually pays the agent’s commission, buyers still gain big by having an expert negotiate, search, and advocate on their behalf - it’s like having a real estate bodyguard.
Myth: Open houses guarantee a fast sale and selling it yourself (FSBO – for sale by owner) means big savings.
Reality: Open houses helps but as for FSBO, selling your home yourself can save on agent fees, but you will need serious hustle, paperwork savvy, and nerves of steel to avoid expensive mistakes.
Myth: There is no need to declutter or depersonalize before an open house.
Reality: Buyers need to see themselves in the space, not your vacation photos. A clean, neutral setup helps them mentally move in before they even make an offer.
Myth: Every renovation adds value.
Reality: Not all upgrades pay off, especially in older or heritage homes where original features can be dealmakers. Sometimes the best reno advice is to drop the sledgehammer and back away slowly.
Myth: A home that has been sitting on the market longer is ripe for lowballing.
Reality: It depends. The delay might be due to an ambitious price tag, property issues, or seller terms but not necessarily an opportunity to swoop in with a bargain.
Myth: A great house will sell itself.
Reality: Even the most beautiful home won’t get far without a solid marketing strategy. Think of it as dating - great looks help, but personality (and promotion) seals the deal.
Myth: You can skip the home inspection.
Reality: Skipping inspections is a gamble. In competitive markets, a pre-offer inspection might be your best move to protect yourself and stay in the game.
The most common Causes of Residential Real Estate Litigation are:
Construction Defects: Sellers are legally required to disclose known material defects that could affect the property's value or safety. However, when a buyer discovers undisclosed issues - Structural damage (e.g., foundation cracks), Mold (which can be a health hazard), Water damage or leaks, Termite infestations, Electrical or Plumbing problems.
Contract Disputes: Arises when parties to a real estate agreement disagree about their obligations, terms, or the overall performance of the agreement.
Title Disputes: Real estate scene often leads to zoning and land use disputes. These can involve issues addressing property development, changes in zoning regulations, or disagreements over permitted uses of a property.
Fraud and Deception: Fraud typically involves misrepresentation or concealment to gain an unfair advantage. Common issues include forging documents, misrepresenting a property's condition, or fraudulent transfers of ownership.
Landlord-Tenant Disputes: Disputes can be over security deposits and eviction proceedings. Ontario’s landlord-tenant laws can sometimes be complex, and violations can quickly escalate to legal issues.
Failure of Transaction: The basic reasons for the transaction to fail can be:
For the Buyer:
They don’t deliver the required payment, whether via approved mortgage or available cash.
They fail to appear to complete the signing of closing paperwork.
They withdraw for a reason not allowed by the agreement (such as last-minute doubt or regret).
They miss key milestones or fail to fulfill terms, like not removing financing or inspection clauses by the set deadline.
For the Seller:
They are either unwilling or unable to hand over legal ownership (for example, due to complications with the property title).
They do not leave the premises by the agreed-upon move-out date.
They cancel the deal despite the buyer having satisfied all contractual obligations.
What Happens If there is a Failure to Complete the transaction?
Well, It all depends on the jurisdiction and the contract terms, but typically:
The innocent party may be entitled to terminate the contract.
The buyer may lose their deposit (sometimes 5% or more of the purchase price).
The party not at fault may sue for damages, especially if there is a financial loss (like having to resell for less or paying double moving costs).
The parties might renegotiate and agree to a new completion date, especially if it's a minor delay.
Choose Our Proven and Capable Brampton Real Estate lawyers for your Residential Real Estate needs or Litigation. RRM Law can help with:
Failure to Disclose Environmental Risks
Carelessness or False Information Provided by Realtors
Reducing the Likelihood of Legal Disputes in Home Sales
Hundreds of clients have chosen our Real Estate Lawyer at RRM Law for:
Decades of collective legal knowledge ensuring your case is managed effectively and with cost-conscious strategies.
A strong track record, with 90% of clients returning or recommending others, reflecting outstanding satisfaction.
Customized service that includes direct communication with the lawyer and a guaranteed response within 24 hours.
Prompt initiation of legal matters using a secure digital platform for timely and organized case updates.
A modern workspace equipped with the latest technologies such as virtual meeting tools and secure cloud-based document management.
Long-term client engagement supported by experienced, approachable staff ready to assist with both current and future legal matters.
To schedule your free consultation, call us at (905) 798-3776 or contact us online.