5 Common Legal Issues in Real Estate Transactions—And How to Avoid Them
Buying or selling property should be exciting—not stressful. But for many people, the real estate process becomes overwhelming when unexpected legal issues arise. Whether you're purchasing your first home, investing in commercial property, or selling a piece of land, understanding potential legal pitfalls can save you time, money, and future headaches.
As experienced real estate attorneys, we've seen it all. Here are five of the most common legal problems in real estate transactions—and what you can do to avoid them.
1. Title Defects or Disputes
What it is: A title defect means there's a legal problem with the ownership of the property—such as an old lien, unpaid taxes, a missing signature on a deed, or a dispute over who actually owns the property.
Why it matters: These issues can delay closing or, worse, cause the sale to fall through entirely.
How to avoid it:
Conduct a thorough title search through a reputable title company or attorney.
Purchase title insurance to protect your investment.
Let an attorney review all documents and identify red flags before closing.
2. Zoning or Land Use Issues
What it is: Zoning laws regulate how property can be used (residential, commercial, agricultural, etc.). Violating them can lead to fines, required demolition, or a halt to your plans.
Why it matters: You might buy a property thinking you can run a business from it—only to find out that zoning laws say otherwise.
How to avoid it:
Check local zoning ordinances before buying or building.
Request zoning verification letters from the city or county.
Talk to an attorney about variances or special use permits if your plans don’t align with existing zoning.
3. Contract Errors or Ambiguities
What it is: Real estate contracts must be clear, specific, and enforceable. Vague language or missing terms can lead to misunderstandings or lawsuits.
Why it matters: A poorly written contract can delay the transaction or leave you vulnerable if a dispute arises.
How to avoid it:
Never use a generic online contract template without review.
Hire an attorney to draft or review your purchase agreement, especially for non-standard deals.
Ensure that all terms (price, closing date, contingencies, disclosures) are explicitly spelled out.
4. Failure to Disclose Property Defects
What it is: Sellers are legally obligated to disclose known defects or issues with the property (e.g., water damage, mold, structural problems).
Why it matters: Buyers who discover undisclosed problems after closing may sue for damages or rescission.
How to avoid it:
As a seller, disclose everything—even if it seems minor.
As a buyer, request a professional home inspection and review all seller disclosure forms.
Let your attorney help interpret disclosures and inspection results before finalizing the deal.
5. Boundary or Easement Disputes
What it is: Disagreements over where one property ends and another begins, or confusion about easements (such as a neighbor having a right to use part of your land).
Why it matters: These conflicts can affect your ability to build, use, or sell the property.
How to avoid it:
Order a current property survey before closing.
Review existing easements listed on the deed or plat map.
Ask your attorney to explain your legal rights regarding shared access or encroachments.
The Bottom Line: Don’t Go It Alone
Real estate transactions involve more than just signing papers—they involve significant legal risks that can cost you thousands if handled improperly. Having a trusted real estate attorney on your side ensures the process is handled smoothly, your rights are protected, and your investment is secure.
Let’s Help You Protect Your Property Investment
At The Law Office of Adolphus Thompson, we help buyers, sellers, developers, and investors navigate complex real estate transactions with confidence. Whether you're dealing with zoning challenges, contract disputes, or title concerns, we’re here to guide you every step of the way.
Schedule a consultation with us today!
