An out of the box approach for real estate litigation

The firm specializes in real estate disputes, such as failed closings and seller breaches, as well as common issues with properties, like latent defects, failure of the seller to provide vacant possession to the buyer or even buyer or sellers’ remorse. The firm also works on cases involving professional disciplinary matters on behalf of real estate agents and brokerages involving allegations of ethical breaches and other complaints.

“My role is to help reassure my clients, mitigate damages and/or enforce their contracts. I do my best to help my clients review what their options are to reduce risk,” says Mulholland. “Therefore, consultation and careful evaluation of the facts are the key to avoiding these types of disputes from escalating.”

Disputes can also occur when developers try to cancel a purchase, to negotiate a higher price for the same property in a rising market or as a result of escalating building costs. However, there is legislation in place to protect buyers from developers who are more aggressive. Understanding the contract before signing is paramount to protection – though, developers unfortunately, usually have a lot more protection than buyers do.

“This is a difficult situation and most of the time litigation, which is a route we try to avoid, is already in play by the time the client contacts us,” says Mulholland. “The key for buyers is to prioritize getting their contract reviewed by a real estate lawyer before signing on the dotted line.”

Mulholland and his team have also encountered cases where buyers of pre-construction homes are unable to secure financing to close on their contract due to falling housing prices. The buyer has originally agreed to purchase when the market was high, but the bank has since retracted their agreement to provide financing due to insufficient equity in the property.

“The best course of action in a case like this is to reach out to a lawyer right away to avoid the possibility of a dispute and find out what action can be taken. Depending on the conditions of the contract, while walking away could be a possibility, a buyer will want to exhaust other solutions to secure financing,” says Mulholland, because of the risks associated in walking away.

Mulholland continues, “Buyers also contact us when they have signed a contract to purchase a property and they are unable to close for a number of other reasons.” He points out that unfortunately for those buyers looking to terminate their agreements, “Contracts are usually very tightly written, because of this, clients don’t always realize that their deposit can be forfeited and that they can be liable for further damages.”

Mortgage fraud, another element in real estate litigation that Mulholland is all too familiar with, comes in different forms. Mortgage fraud can occur in various situations including when there is an attempt to secure financing based on counterfeit documents. From selling a property without the homeowner knowing (as we have seen of late in various news stories), to applying for a loan secured against the property without the homeowner’s knowledge, fraud is appearing to become more and more prevalent. Those who are more vulnerable are finding themselves targeted because they are trying desperately to get into the housing market.

“Buyers with insufficient funds to buy a property or qualify for a loan are being targeted by people who commit fraud. The lengths to which people will go these days is truly extraordinary,” says Mulholland.

“Another group that is often targeted are those who are older and who over the years have grown significant equity in their homes and are therefore far more likely to qualify for a loan secured against it. In most, if not all cases, the legal homeowner has no idea this is happening.”

According to Mulholland, a good rule of thumb is to get in contact with a lawyer before passing the point of no return of any potential real estate issue on the horizon to help increase chances of a successful outcome. 

“We are frank and candid with our opinions with respect to our clients’ rights. It’s important to have a full understanding of each case to be in a position to properly inform our clients. While working through the details of the case to determine whether the law is on our clients’ side, we make every attempt at keeping costs low. Our structure allows us to be more predictable with fees, which is important to our clients’ – focusing on this allows us to excel,” says Mulholland.

For more information about Gill + Mulholland LLP and how they can help please visit their website or their Instagram.