6 Common Disputes That Require A Commercial Real Estate Litigation Lawyer
Commercial real estate transactions involve substantial investments and complex agreements. When everything goes smoothly, everyone profits. When disputes arise, the financial stakes can be enormous.
Many property owners, developers, and investors try to resolve conflicts through negotiation or informal mediation. Sometimes this works. But certain disputes require formal legal action to protect your interests and recover your losses. Our friends at Volpe Law LLC discuss how commercial property litigation involves unique procedural rules, valuation issues, and industry knowledge that general litigators often lack. An experienced commercial real estate litigation lawyer understands both the legal framework and the business realities of property disputes.
Why Commercial Real Estate Litigation Is Different
Commercial property disputes involve different laws, damages calculations, and remedies than residential real estate or general business litigation. Lease agreements span decades. Property values fluctuate. Zoning regulations affect development rights. Environmental issues create unexpected liability.
These cases also frequently involve multiple parties including landlords, tenants, lenders, contractors, municipalities, and adjacent property owners. Coordinating claims and defenses across these relationships requires strategic thinking beyond standard litigation practice.
The Most Common Litigation Scenarios
1. Lease Disputes Between Landlords And Tenants
Commercial leases are sophisticated contracts with numerous provisions that can trigger disputes. Common conflicts include disagreements over rent calculations, percentage rent clauses, common area maintenance charges, and lease interpretation.
Tenants might claim the landlord failed to maintain the property or provide required services. Landlords might seek eviction for lease violations or unpaid rent. Both sides face significant financial exposure.
We represent both landlords and tenants in lease disputes. The key is understanding how courts interpret specific lease language and what remedies are available under your jurisdiction’s commercial landlord-tenant laws.
2. Purchase And Sale Agreement Breaches
Real estate purchase agreements contain contingencies, representations, warranties, and closing conditions. When parties fail to perform, litigation often follows.
Buyers might discover undisclosed property defects, title issues, or environmental contamination. Sellers might face buyers who refuse to close or claim the property doesn’t match contractual representations. These disputes involve questions about:
- Breach of contract damages versus specific performance
- Earnest money forfeiture or return
- Title insurance coverage and claims
- Fraud and misrepresentation allegations
The difference between getting your deposit back and losing millions can depend on how contracts are interpreted and what evidence supports your position.
3. Construction Defects And Contractor Disputes
Development projects generate numerous litigation opportunities. Contractors might file mechanic’s liens for unpaid work. Property owners might sue for defective construction, delays, or cost overruns.
These cases require technical evidence about construction standards, project specifications, and industry practices. We work with engineers, architects, and construction professionals to build strong cases on either side of these disputes.
4. Partnership And Joint Venture Conflicts
Commercial real estate investments frequently involve multiple partners or joint ventures. When relationships deteriorate, partners dispute profit distributions, management decisions, or buyout terms.
Partnership disputes become particularly contentious because they often involve both business and personal relationships. Operating agreements might be poorly drafted or silent on key issues. Fiduciary duty claims add another layer of legal analysis.
5. Zoning And Land Use Litigation
Municipalities have broad authority to regulate land use through zoning ordinances, building codes, and development approvals. When local governments deny permits, impose conditions, or change zoning classifications, property owners sometimes need to challenge these decisions in court.
We also defend property owners against neighbor challenges to approved developments. These cases involve administrative law procedures, constitutional takings claims, and detailed knowledge of local land use regulations.
6. Title Disputes And Boundary Conflicts
Clear title is fundamental to real estate ownership. Disputes arise over easements, encroachments, adverse possession claims, and competing ownership interests.
Boundary disputes with adjacent property owners can seem minor but often involve significant property values. Survey errors, fence placements, and historical use patterns all factor into these cases. Quiet title actions resolve ownership questions definitively but require navigating specific procedural requirements.
The Cost Of Delayed Action
Commercial real estate disputes rarely improve with time. Statutes of limitations run. Evidence disappears. Damages accumulate. Properties decline in value.
Some clients wait too long hoping conflicts will resolve informally. By the time they seek legal counsel, they’ve already damaged their position through poor documentation, admissions, or missed deadlines.
Early legal involvement often prevents litigation entirely. When litigation becomes necessary, early preparation leads to better outcomes.
Alternative Dispute Resolution Considerations
Not every commercial real estate conflict requires a trial. Mediation and arbitration can resolve disputes faster and less expensively than court litigation. Many commercial leases and purchase agreements contain mandatory arbitration clauses.
However, arbitration has limitations. Discovery is often restricted. Appeals are nearly impossible. Some disputes are better suited for court where you have full procedural protections.
We help clients evaluate whether alternative dispute resolution serves their interests or whether litigation provides better leverage and protection.
Protecting Your Commercial Real Estate Investment
Commercial property disputes threaten both immediate cash flow and long-term asset value. Whether you’re a landlord, tenant, buyer, seller, developer, or investor, protecting your rights requires counsel who understands commercial real estate litigation. We represent clients in property disputes from pre-litigation strategy through trial and appeal. Contact us to discuss your situation and develop an approach that protects your investment.
