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Real Estate Litigation: An Expert's Advice on Real Estate Disputes

Welcome to our comprehensive guide on California real estate litigation and disputes. Real estate transactions and ownership often face their fair share of legal challenges. Whether you’re a property owner, investor, or real estate professional, understanding the intricacies of real estate disputes is crucial for safeguarding your investments and interests. 

California Real Estate litigation

California Real Estate Litigation FAQs

In this FAQ guide, we’ve curated a wealth of knowledge to address your most pressing questions. From common disputes to legal strategies, we aim to provide clarity and empower you with insights to make informed decisions. While this guide does not constitute legal advice, it is a valuable resource to help you navigate the complexities of real estate litigation and know when to consult with a legal expert. Below are the most commonly asked topics when it comes to real estate litigation or disputes.

Real Estate Disputes & Litigation

Common real estate disputes involving business properties in California include disagreements between investors in the property, over lease terms, rent disputes, property damage claims, boundary disputes, zoning and land use issues, and breach of contract.

Yes, commercial tenants have the right to sue landlords for breach of the implied warranty of habitability if the property’s condition substantially affects the tenant’s ability to conduct business. Not true- (Unlike residential property, a commercial property does not have the benefit of implied warranty of habitability. An implied warranty of habitability ensures that a landlord maintains a property to be fit for human habitation. (CCP § 1941.1))

Disputes over lease agreements are often resolved through negotiation, mediation, or arbitration. If these methods fail, either party may file a lawsuit to seek resolution in court.

In California, commercial lease termination is subject to the terms specified in the lease agreement. Generally, early termination may be allowed if both parties mutually agree or if there is a specific provision for termination.

Yes, property owners can face discrimination litigation if a business tenant alleges that they were treated unfairly based on protected characteristics, such as race, gender, religion, or disability.

Yes, under the Americans with Disabilities Act (ADA) and California’s Fair Employment and Housing Act (FEHA), property owners must make reasonable accommodations for tenants with disabilities to ensure equal access to the property.

Yes, a property owner can be held liable for injuries sustained on the business property if it can be proven that the owner’s negligence or failure to maintain a safe environment caused the injury.

A business property owner may file a claim against the neighboring property owner for nuisance or seek an injunction to halt construction activities that adversely affect their business operations.

A real estate attorney can provide legal counsel, negotiate on behalf of property owners or tenants, review and draft lease agreements, represent clients in mediation or litigation, and protect their interests during the dispute resolution process.

The costs and time frames of Real Estate litigation can vary significantly depending on the complexity of the case and the parties involved. It is essential to consult with an experienced real estate attorney to gain a better understanding of the specific circumstances involved.

Please be aware that real estate disputes and litigations can be intricate and nuanced, and the information provided here does not constitute legal advice. If you encounter a real estate dispute related to a business property in California, it’s crucial to seek guidance from a qualified real estate attorney to protect your rights and achieve the best possible outcome.

Property Disputes Between Investors and Real Estate LLCs

real estate disputes property california

Yes, an investor can sue a Real Estate LLC in California if they believe there has been a breach of contract, fraud, misrepresentation, or any other legal violation related to the investment.

Common property disputes include disagreements over property ownership, profit distribution, management decisions, lease agreements, and breach of fiduciary duties.

Property disputes are often resolved through negotiation, mediation, or arbitration. If these methods fail, the parties may pursue litigation to seek resolution in court.

In California, the statute of limitations for filing a property dispute lawsuit related to a written contract is generally four years. Disputes arising from fraud generally have a statute of limitation of three years depending on when the fraud was discovered. Different statutes of limitation apply to other claims and it is essential to consult with an experienced real estate attorney regarding the statute of limitations issues.

Yes, the operating agreement of a Real Estate LLC may contain provisions allowing for the expulsion of an investor or member under certain circumstances, but it must be in accordance with the LLC’s governing documents and California law.

  • An investor may seek to dissolve a Real Estate LLC in California under certain circumstances, depending on the terms of the operating agreement, its legal status, or if the majority of members agree to dissolve it.

Before investing, an individual should thoroughly review the LLC’s operating agreement, financial records, and property portfolios and consult with a real estate attorney to ensure they understand their rights and obligations and that the LLC is seeking investment pursuant to state and federal securities laws.


Generally, the liability of members in a Real Estate LLC is limited to their investment, and personal liability is limited. However, certain exceptions, such as fraud actions and breaches of fiduciary duty, may lead to personal liability.

A real estate attorney can provide legal advice, represent the interests of investors in negotiations or litigation, review contracts and operating agreements for breaches, and help find the most appropriate resolution for the dispute.

Please note that real estate law and property disputes can be complex, and the information provided here is not a substitute for professional legal advice. If you encounter a property dispute in California, it is essential to seek guidance from an experienced real estate attorney to protect your rights and interests.

Disagreements Regarding Property Involving Family Members

property disputes between family members business california

Common disagreements involve property inheritance, co-ownership disputes, division of assets among heirs, disagreements over property use, partition of a property, and issues related to property transfers or sales.

Yes, disagreements over inherited property can often be resolved through family mediation or by seeking the guidance of a qualified estate attorney to negotiate a fair distribution of assets.

In such cases, a co-owner may file a partition lawsuit, seeking a court order to divide or sell the property and distribute the proceeds or land among the co-owners.

In some circumstances, a co-owner can petition the court for a partition sale, even if other co-owners object.

 The timeline for resolving property disputes can vary widely, depending on the complexity of the case and the willingness of the parties to negotiate. Mediation or settlement can be quicker than going through the court system.

Please note that real estate disputes involving family members can be emotionally charged, and it’s crucial to approach these matters with empathy and open communication. Seeking advice from a qualified real estate attorney or mediator can help facilitate a smoother resolution and protect family relationships during this process.

Creditor or Debtor Issues Involving Commercial Lending

commercial real estate litigation creditors/debtors california

To obtain a commercial loan, a borrower must typically submit a loan application, provide financial documentation, and undergo a thorough underwriting process to assess creditworthiness.

Common types of collateral accepted by lenders for commercial real estate loans in California include the property itself, personal guarantees, and other assets owned by the borrower.

Yes, in case of loan default, the creditor may initiate foreclosure proceedings to recover the outstanding debt by selling the commercial property.

Consequences of loan default can include foreclosure, damage to the debtor’s credit score, legal actions, and potential liability for the remaining debt.

Yes, in certain cases, a creditor may seek a deficiency judgment to collect the remaining loan balance from the debtor after a commercial property foreclosure.

Yes, borrowers can attempt to negotiate loan modifications with the lender, such as adjusting interest rates or extending the loan term, to make repayments more manageable.

Debtors facing financial hardship may consider options like loan forbearance, loan restructuring, or seeking a short sale of the commercial property to avoid foreclosure.

Yes, California has laws against predatory lending, and lenders engaging in unfair or deceptive practices can be subject to legal actions and penalties.

Yes, debtors can challenge a foreclosure action by raising legal defenses, such as improper notice, violations of the loan agreement, or fraudulent practices.

Real estate law related to commercial lending and creditor or debtor issues can be complex, and the information provided here is not a substitute for professional legal advice. If you are dealing with commercial lending matters in California, it is essential to seek guidance from an experienced real estate attorney to understand your rights and obligations fully.

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