If you are into real estate, it is important to know what real estate lawsuit settlements is all about. Real estate lawsuits can come from many different types of situations, but one of the more common complaints involves contractors and the work they’ve performed on properties.
If you’re not happy with the work that was done on your property, whether it’s due to shoddy craftsmanship or a disagreement over payment, you might have to take action through the legal system to resolve the situation.
However, while real estate lawsuit settlements are often necessary and can help to ensure that both parties receive fair compensation, there are some situations where settlement doesn’t make sense, and going to court would be a better option instead.
To know everything about What a Real Estate Lawsuit Settlement is, kindly read this article till the end.
What Are Real Estate Lawsuit Settlements?
A lawsuit settlement is a monetary award given to a party due to actual or alleged damage caused by another party’s actions.
For example, if John Smith slips and falls on a wet floor in Rose Cafe while trying to get his morning coffee, he can sue Rose Cafe for injuries and medical bills.
In exchange for dropping the lawsuit against Rose Cafe, John may receive a monetary settlement with costs awarded in his favor.
Settlements are typically voluntary agreements between both parties without any court intervention.
A lawsuit can involve various different parties, including:
- The homeowner, who is usually the borrower in a mortgage agreement;
- The mortgage company, who is usually the lender;
- Other lending institutions, such as banks or private lenders;
- Secondary or tertiary mortgage companies;
- Appraisers who estimate the value of the property; and
- Government bodies, specifically for land use or zoning disputes
What Are Some Common Causes of Action in Real Estate Lawsuits?
There are a number of different types of lawsuit causes, but three common ones in real estate lawsuits include breach of contract, fraud, and negligence.
A breach of contract occurs when one party fails to abide by their contractual obligations, or doesn’t do what they have agreed to do.
Fraud involves misrepresentation or other intentional deceptions that result in damages to another party. Negligence refers to a failure to act reasonably, with resulting harm being suffered by someone else.
Other Cause includes:
- Failure to pay monthly mortgage payments;
- Breach of mortgage contract;
- Unauthorized transfers of real estate titles;
- Illegal usage of land or property;
- Disputes with a mortgage lender, such as foreclosure, mortgage fraud, predatory lending practices, discrimination; and
- Disputes regarding title or property records, etc
What Are Some Typical Remedies in a Real Estate Lawsuit?
The court can grant a plaintiff in a real estate lawsuit some form of monetary damages, including
- Actual damages or
- Restitution for any loss caused by another party’s actions.
This second category is where it gets tricky, legal terminology can get rather confusing here. First, there are compensatory damages, which means that you receive money to replace your injured asset
A damage award typically compensates the non-liable party for any losses resulting from the real estate dispute. Examples of real estate dispute remedies include;
- Injunctions, such as a court order prohibiting any further building;
- Mediation or arbitration, which would entail a neutral third party assisting the conflicting parties in reaching an agreement;
- Various penalties or fees, which are frequent for zoning/land use infractions in the city or state;
- Restructuring a contract or a credit arrangement to make it more suitable for the parties concerned;
- Specific performance, such as compelling one party to fulfill their contractual obligations; or
- A judicial sale of the property or a judicial lien on it.
How an Attorney Can Help in Settlement
While many people know that they can sue for a personal injury, some are less familiar with how an attorney can help in settlement when you have property damage or have a dispute with your lender.
When you don’t understand what options are available to you, it is possible that you will settle for something other than your fair share of compensation.
An Attorney Can Help in Settlement by
- Reviewing your case and ensuring that you are not settling for less than you deserve.
- Negotiating with your insurance company on your behalf.
- Explain all of your options to you so that you can make a decision based on all of the facts.
- Protecting your rights throughout negotiations and settlement proceedings.
Do I Need an Attorney to Assist with a Real Estate Lawsuit?
The answer to the question is that you don’t need an attorney for every real estate lawsuit. However, it does depend on what kind of lawsuit you are involved in and how much money is at stake.
For example, if your neighbor sues you for slander because of something that happened during a dispute over a fence line, then it probably won’t be worth hiring an attorney.
Can I sue my Realtor For Negligence?
Not all real estate professionals adhere to a code of ethics or a professional standard. If your Realtor was dishonest or unethical, you may be able to sue them for negligence.
Negligence is defined as conduct that violates standards of care and may result in harm. Negligence can take many forms, including fraud, lack of due diligence, violation of contracts, and lack of informed consent from buyers.
How to Find A Lawyer to Sue Real Estate Agent
Finding a lawyer is easy but finding a good one for your lawsuit against a real estate agent is quite difficult. You need to find someone that not only specializes in real estate law and has experience, but also someone you trust.
To find a lawyer to sue a real estate agent, you might start searching for things like real estate litigators near me, and so much more. A good place to look for a lawyer is online or by word of mouth. If you have friends, family, or colleagues that had experience dealing with lawyers in your area, ask them for recommendations.
How Much can you Sue a Real Estate Agent For?
How much you can sue a real estate agent for will depend on a number of different factors, including how much you paid for your home and how long you lived there.
If you were harmed by mistakes that your real estate agent made during your transaction (be it through negligence or bad advice), then you may be able to recoup some of your losses.
Generally, you can sue a real estate agent for about 1% of your home’s purchase price. For example, if you bought a $500,000 home and lived in it for 10 years before selling it at a loss of $50,000 (meaning that your total investment was $550,000), then you could recover up to $5,000 in damages. Of course, there are exceptions to every rule.
How Long Does A Real Estate Lawsuit Take?
According to Reinhartlaw, a typical lawsuit take more than 24 months. Therefore, a real estate lawsuit can take anywhere from 10 to 24 months to achieve the last judgment.
The “months” typically are not a few months, but ten to twenty months, or more. Also, even after the trial court reaches a final judgment, the appellate courts await. Another 12-plus months is not out of the ordinary for the court of appeals to render a decision.
If you are not satisfied with your settlement, try filing a claim. If that doesn’t work, and there has been no evidence of fraud or wrongdoing on behalf of your broker, talk to a lawyer. A real estate lawyer can tell you whether it is worthwhile to file an official complaint with your state government agency in order to open up a new lawsuit against your broker.