For many individuals and businesses, property might be the most valuable asset they own, so when real estate disputes arise, it can cause a huge disruption in business and jeopardize your most valuable asset. Real estate litigation is incredibly complex and is often bound by intricate contracts, so parties like contractors, property owners, developers, investors, and lenders can find themselves entangled in complicated disputes, including breach of contract claims.
Types Of Real Estate Disputes
Businesses can face many types of real estate disputes, but some of the most common include:
- Earnest Money Contracts
- Lender Liability Disputes
- Lease Disputes
- Adverse Possession Disputes
- Easement Conflicts
- Construction Litigation
Local ordinances and state laws often guide real estate disputes, but regardless of where the dispute occurs, there are several constants. Landlords renting property have certain duties to their tenants; and, in turn, renters must abide certain rules. If either party violates these duties, disputes can easily arise and become convoluted by involving third parties like construction companies and financial institutions.
Common Real Estate Disputes in Texas
Texas has one of the most active property markets in the country, and that pace produces a steady stream of disputes. Contract fights are among the most common, whether a seller backs out after accepting an offer, a buyer fails to close, or a developer does not deliver what was promised. Earnest money disputes often follow, with both sides claiming the deposit after a deal collapses. Title and boundary problems are another frequent source of litigation, from encroaching fences and overlapping driveways to easement conflicts over access across a neighboring tract. Lender liability disputes arise when a borrower alleges a lender acted improperly in financing, servicing, or foreclosing on a property. Lease disputes between landlords and tenants, disagreements among co-owners, and claims of fraud or nondisclosure in a sale round out the cases we see most often.
Texas Law Behind Real Estate Disputes
Most real estate disputes turn on a mix of the contract between the parties and specific Texas statutes. Agreements for the sale of real property generally must be in writing to be enforceable under the Texas statute of frauds, which is why a clear, well-drafted contract matters so much when a deal is challenged. Deadlines also play a decisive role. Breach of contract and fraud claims tied to a property generally carry a four-year statute of limitations, while claims under the Texas Deceptive Trade Practices Act carry a two-year deadline, and missing the applicable window can bar an otherwise valid claim.
Ownership and title disputes have their own framework. Under the Texas Civil Practice and Remedies Code, adverse possession claims can run on three-year, five-year, or ten-year timelines depending on the circumstances, such as whether the occupant holds under a registered deed and pays taxes on the property. When a competing claim, an invalid lien, or a defective deed clouds your title, Texas law provides remedies including suits to quiet title and trespass-to-try-title actions to establish that your ownership is superior. Getting these timelines and procedures right is often the difference between winning and losing.
How Real Estate Disputes Get Resolved
Not every real estate dispute has to end in a courtroom. Many are resolved through negotiation or mediation, which can be faster and less costly, and some contracts require arbitration. When a fair resolution cannot be reached, litigation may be necessary, and remedies can include monetary damages, rescission of a transaction, an order clearing or quieting title, injunctive relief to stop or compel specific conduct, or partition of jointly owned property. The right path depends on the facts, the contract, and what outcome actually serves your goals.
Real Estate Litigation FAQs
Does a real estate contract have to be in writing in Texas?
Generally, yes. Under the Texas statute of frauds, contracts for the sale of real property must be in writing and signed to be enforceable. Oral agreements about land are very difficult to enforce, which is one reason disputes so often come down to what the written contract actually says.
How long do I have to bring a real estate claim in Texas?
It depends on the claim. Breach of contract and fraud claims tied to real estate generally have a four-year statute of limitations, while Deceptive Trade Practices Act claims generally have a two-year deadline. Adverse possession and title matters follow their own statutory timelines. Because these deadlines are strictly enforced, it is best to get advice early.
What is a quiet title action?
A quiet title action is a lawsuit brought to resolve competing claims to a property and establish that your ownership is superior to a challenger’s. It is a common tool when an invalid lien, a defective deed, or an adverse claim clouds your title and interferes with selling, financing, or insuring the property.
Can I lose my property to adverse possession?
In some circumstances, yes. Texas law allows someone who openly and continuously possesses land that is not theirs to claim ownership after a statutory period, which can be three, five, or ten years depending on the facts. Acting promptly when someone occupies or encroaches on your property is important, because the passage of time can shift these disputes permanently.
Resolving Real Estate Disputes
Having an experienced real estate and commercial litigation lawyer is crucial in any type of real estate dispute. Involving a lawyer early in the process can help resolve disputes before they escalate out of control.
At Callender Bowlin, our attorneys carefully review all of your real estate contracts and thoroughly investigate your legal issues to identify the best way to resolve your dispute. We utilize a “business first” perspective when addressing real estate litigation because your business objectives should drive the litigation, not the other way around.
