California’s real estate market continues to evolve, and with it, the types of legal disputes that arise. Understanding these trends can help property owners, investors, and developers navigate the market, anticipate challenges they may face, and avoid costly legal battles. Below are some of the key trends currently driving real estate disputes in California.
Increased Litigation Over Defencient Disclosures
One of the most common issues in real estate disputes revolves around the failure to disclose important information about a property. Under California law, sellers are required to disclose known material defects, but disputes often arise when buyers discover previously undisclosed issues such as structural problems, water damage, or environmental hazards after the purchase.In these cases, the failure to disclose can lead to litigation, with buyers seeking compensation for repairs or loss of property value. Ensuring full transparency during the sale process, thoroughly reviewing disclosure forms, and conducting thorough independent investigations prior to closing are essential steps for both sellers and buyers to reduce the risk of future disputes.
Boundary and Easement Disputes Are Becoming More Common
Boundary lines and easements are becoming frequent points of contention, especially as property values rise across California. Even minor discrepancies in property boundaries or easements, which grant the right to use part of a property for specific purposes, can lead to significant legal conflicts. These disputes can arise from outdated or unclear property descriptions, encroachments, or disagreements over access rights.Before purchasing a property or making improvements, it’s important to ensure that you understand all boundary lines and easements impacting the property. Disputes can escalate quickly where there is ambiguity about property rights, leading to drawn-out legal proceedings that could have been avoided with proper due diligence.
Environmental and Climate-Related Disputes on the Rise
California’s susceptibility to natural disasters such as wildfires and floods has resulted in an increase in real estate disputes related to environmental and climate risks. Properties located in high-risk areas, particularly along the coast or in fire-prone regions, face unique challenges, including disputes over insurance coverage, zoning restrictions, and non-disclosure of environmental hazards.As climate change continues to affect real estate values, as well as the availability and terms of insurance policies, buyers and sellers alike must carefully evaluate the environmental risks associated with a property. Disclosure of such risks is not only a legal obligation but also a crucial step in avoiding disputes down the road.
Construction Defect Claims Continue to Surge
New developments in California have led to an increase in construction defect claims. Buyers of newly built homes are increasingly pursuing legal action against builders and developers over issues like faulty construction, improper materials, or violations of building codes. These defects can include anything from foundation problems to water intrusion, and they often don’t become apparent until after the property has been purchased.California law provides homeowners with up to 10 years to file a lawsuit for certain types of latent construction defects, making this a long-term risk for developers. Both property owners and developers need to be aware of the potential for such claims and take steps to ensure that construction standards are met and any defects are addressed promptly. While developers, in particular, can effectively manage these risks through insurance, doing so often requires carefully reviewing your policies each year to ensure that they cover what you think they do.
Tenant-Landlord Disputes Fueled by Regulatory Changes
California’s rental market is highly regulated, and recent changes to state and local laws have contributed to an increase in tenant-landlord disputes. Laws such as AB 1482, which introduced rent caps and stricter eviction protections, have made it more difficult for landlords to navigate the rental market without facing legal challenges. Disputes often involve issues like wrongful eviction, rent increases, and habitability concerns.Both landlords and tenants need to stay informed about their rights and obligations under these new laws. Failing to comply with the legal requirements for rent increases, lease terminations, or property maintenance can lead to disputes that require legal intervention.The landscape of real estate disputes in California is evolving, with new trends emerging in areas such as disclosure failures, boundary disputes, construction defects, tenant-landlord conflicts, and environmental risks. Understanding these trends is critical for anyone involved in real estate transactions to protect their interests and avoid costly legal battles. Staying informed and addressing potential issues early can help mitigate the risks associated with these disputes, allowing parties to focus on successful property investments and developments. If you need assistance with any of these issues, contact Horst Legal Counsel today.