Real Estate Disputes & How Agents Can Resolve Them

September 5, 2025

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Disputes Are Part of the Real Estate Industry

Agents must juggle fiduciary duties, disclosure requirements, and contractual obligations, all while managing client expectations. And when something goes wrong, the fallout often involves financial losses, legal action, or real estate litigation.

At Rapid Ruling, we’ve seen it all: from breach of contract disputes to ownership disputes over title defects. The good news? With preparation and the right strategies, most disputes can be resolved before they spiral into courtroom battles.

Breach of Contract: When Agreements Break Down

Understanding Common Breach Scenarios

Contracts are the backbone of every real estate transaction. But contracts are only as good as the parties who follow them. A breach of contract occurs when one side doesn’t fulfill their legal obligations.

Some common scenarios include:

Buyers who fail to secure financing or provide the agreed down payment.
Sellers who refuse to complete required repairs before closing.
Disputes over boilerplate contract language that wasn’t explained clearly.

These breaches can delay closing, cause financial damages, and sometimes lead to brokerage litigation if agents are accused of mishandling the process.

Strategies for Resolving Contractual Disputes

The first step is documentation. Keep every signed disclosure form, confidentiality agreement, and communication record organized. Many breaches can be resolved through negotiation, but when parties refuse to compromise, mediation or arbitration may be the next step.

In Texas, the Texas Real Estate Commission (TREC) has specific rules under the IABS Notice that regulate how agents disclose obligations and maintain compliance.

Property Boundary Disputes: Lines in the Sand

Identifying and Resolving Boundary Issues

Property boundary disputes are more common than many agents realize. A misplaced fence, driveway access, or confusion over legal boundaries can delay or derail a deal.

A recent case in Salt Lake City involved neighbors disputing the use of a shared alley. The disagreement escalated until the parties produced updated surveys and involved their title insurance company.

The Role of Surveys and Property Assessments

The best way to prevent boundary conflicts is to encourage buyers to order new surveys and property valuations during due diligence. Title insurance policies may also protect against unexpected title defects tied to boundaries or easements.

Property Defects: The Disclosure Dilemma

Recognizing Hidden Property Flaws

From electrical problems and roof leaks to structural issues, property defects create some of the most heated disputes in the real estate industry. Buyers often discover these problems after moving in, leading to claims of misrepresentation.

Ensuring Full Disclosure and Legal Compliance

The National Association of Realtors (NAR) Code of Ethics requires full disclosure of material facts. Failure to provide accurate details on a disclosure form not only violates ethical standards but can also result in disciplinary actions from a local REALTOR association.

HUD’s Fair Housing Act also intersects here, as non-disclosure or selective disclosure could lead to discrimination claims (HUD.gov).

Title Defects: Ownership Complications

Detecting and Correcting Title Issues

Unresolved liens, unpaid property taxes, or recording errors in the property description can create ownership disputes. These title defects not only stall closings but may require real estate attorneys to resolve.

Navigating Legal Channels for Title Resolutions

Agents should encourage clients to obtain title insurance as protection. In complex cases, a judge or administrative law review may be required to clear ownership. At Rapid Ruling, we’ve helped clients use mediation to avoid long, drawn-out court battles.

Landlord-Tenant Disputes and Property Management Challenges

For agents who also handle property management or advise investors, Landlord-Tenant Disputes are common. These may involve unpaid rent, lease violations, or disputes over lease management in condominium associations.

In Winter Park, for example, a landlord-tenant dispute escalated when a tenant refused to vacate after a lease ended. Mediation avoided costly eviction proceedings and preserved cash flow for the owner.

The Role of Accurate Documentation

Essential Documentation Practices

Keeping organized files, listing assets, disclosure forms, inspection reports, financial reporting, isn’t just good practice, it’s legal protection. In disputes, these records often become the deciding factor.

How Organized Records Prevent Disputes

When agents can produce virtual tours, client communication logs, or CRM system records, they demonstrate actual authority and apparent authority in fulfilling their role. This evidence can prevent breach of trust claims in broker-client relationships.

The Power of Open Communication

Building Trust Through Transparent Dialogue

Most disputes don’t start with bad intentions; they start with poor communication. Being upfront about market trends, construction costs, cap rates, and mortgage rates helps manage expectations.

Approaches to Client and Agent Communication

From explaining interest rate hikes that affect affordability to walking clients through short-sale homes and gift money down payments, clear communication reduces misunderstandings.

Mediation and Arbitration: Alternative Solutions

When and How to Utilize Mediation

Mediation is collaborative. It allows parties to explore compromise without escalating to real estate litigation. For disputes over contract performance or appraisal issues, mediation often preserves relationships.

Understanding Arbitration as a Resolution Tool

Arbitration is binding and quicker than court. REALTORS® often file an arbitration request through their local association. The Code of Ethics provides guidelines under Part Ten, ensuring disputes are handled fairly.

The Benefit of Legal Expertise

Consulting with Real Estate Attorneys

Some disputes require legal guidance. A real estate attorney can step in when negotiations stall, providing clarity on fiduciary duties, dual agency concerns, or ownership disputes.

Leveraging Legal Advice for Effective Dispute Management

Attorneys also guide agents through brokerage litigation, ethical selling practices, and contract performance disputes. While not every conflict requires a lawyer, having one available during complex disputes protects both agents and clients from financial losses.

Conclusion: Safeguarding Professional Integrity

The real estate industry is fast-paced, and disputes are unavoidable. Whether you’re dealing with a breach of contract, boundary disputes, property defects, or title defects, preparation is key.

At Rapid Ruling, we help real estate agents, property managers, and mortgage lenders resolve disputes through fair, efficient processes. By leveraging mediation, arbitration, and legal consultation, we protect both clients and professionals from financial damages while preserving reputations.

By staying informed, using proper documentation, and committing to ethical selling practices under the Code of Ethics, agents can handle disputes confidently while maintaining client trust.