Common Real Estate Transaction Pitfalls and How to Avoid Them

Buying or selling property is likely one of the largest financial transactions you’ll ever make. While it might seem straightforward, several common pitfalls can turn your real estate dream into a costly nightmare. In this post, we’ll explore the most common issues we see in real estate transactions and share how you can protect yourself from these potential problems.

Title Issues and Property Liens

Before finalizing any real estate purchase, it’s crucial to ensure the property has a clear title. Unknown liens, easements, or encroachments can create significant problems down the road. A proper title search can uncover these issues early in the process.

Property Disclosure and Buyer Due Diligence

In Manitoba, the principle of “caveat emptor” (buyer beware) prevails. Sellers are not legally obligated to disclose defects or issues with the property. However, if sellers choose to make disclosures, they must do so truthfully and accurately. This makes thorough property inspection and due diligence essential for buyers.

Deposit and Financing Complications

Issues with deposits or financing can derail a transaction quickly. This includes situations where funds from the sale of your current property may not be available in time for the purchase of a new one. Bridge financing is usually required in these cases to avoid contract breaches or lost opportunities.

Closing Date Conflicts

Misaligned closing dates between your purchase and sale can leave you without a place to live or facing additional costs. Careful coordination and clear communication between all parties is essential to avoid these scenarios.

Contractual Misunderstandings

Real estate agreements are complex legal documents. Misunderstanding key terms, conditions, or obligations can lead to serious consequences. Even seemingly simple clauses can have significant implications if not properly understood.

Boundary Disputes

Property boundary issues might not surface until after the purchase is complete. These disputes can be costly to resolve and may affect your ability to use or develop the property as intended.

Protection Through Prevention

While we all hope for things to go right during our real estate transactions, the truth is, a lot can go wrong. Having a lawyer by your side to guide you through your contractual rights and obligations can help you avoid these common pitfalls and protect your interests throughout the process.

If you need help with your real estate transaction or have questions about protecting your interests, contact our office. We’re here to ensure your property purchase or sale proceeds smoothly and your rights are protected every step of the way.