Common Causes of Commercial Real Estate Disputes in Florida

Breach of contract disputes are probably the most common types of real estate transaction disputes. If a property owner, contractor or another party fails to live up to their side of the agreement as outlined in the contract, a breach of contract may result and this can lead to a legal dispute.

Florida’s zoning laws classify land into particular districts, such as industrial, agricultural, commercial, residential, and recreational. These laws outline the legal use restrictions for land and help determine whether permits can be issued.

Developers of commercial property are subject to zoning laws. Land use disputes may arise if a project (or a planned project) is suspected of violating the regulations set out by state laws.

A developer may sometimes want to challenge the zoning laws so that an appropriate permit can be obtained. Alternatively, the government may claim that zoning laws have been contravened and a project is using the land unlawfully. This, again, can result in litigation.

Sometimes, too, the legal boundaries of zones or properties are improperly recorded and boundary disputes may arise.

Commercial properties may have several owners. A consensus may not always be possible and disputes may arise with almost any major decision that must be made.

Such disputes can be challenging to resolve and may involve litigation unless the dispute can be resolved during mediation.

Safety concerns are a common cause of disputes with construction projects.

At the start of a project, safety protocols should be agreed upon and implemented according to current best practices. All contractors and construction workers should be adequately trained and any issues addressed rapidly to avoid serious disputes.

Change orders are written agreements that modify the original construction contract.

If a change order fails to properly document the changes requested and is not signed by all parties involved, it can lead to unwanted surprises for parties to a contract. This can prompt disputes and legal issues.

Another type of commercial real estate dispute may arise if a property owner is aware of a material defect on a property (such as a mold problem) and fails to disclose it.

If the defect is discovered after the transaction, it may lead to a lawsuit as the purchaser can claim that the seller knew or should have known about the defects and disclosed them.

A simple lack of clear communication is a common reason for disagreements to escalate into full-blown legal disputes.

Schedules, budgets, and other critical project details must be regularly updated for all stakeholders and, if there is a disagreement, this should be documented and addressed as soon as possible.

Another basic error made by disputing parties is the failure to correctly understand the terms of the construction contract.

Misinterpreting a contract can lead to disputes over the scope of work, the payment schedule, the change order procedures, or other key matters in construction projects.

Legal assistance from a capable construction law professional can help to clarify matters and resolve disputes without heading to court.