Commercial real estate deals involve significant investments, multiple parties, and complex contracts. With so many moving parts, it’s not uncommon for disputes to arise. These disagreements can stall projects, increase costs, and even lead to lengthy litigation if not appropriately addressed.
Common issues include broken lease terms, disputes over purchase contracts, and construction delays. For Texas businesses and investors, knowing how these conflicts are typically resolved and how to prepare for them can make the difference between a manageable challenge and a costly legal battle.
What Are the Most Common Commercial Real Estate Disputes?
Commercial real estate transactions involve numerous risks, and disputes can arise at almost any stage. Some of the most frequent issues include:
- Contract breaches–Disagreements over purchase agreements, financing contingencies, or lease obligations.
- Property defects–Misrepresentation or nondisclosure of environmental hazards, structural problems, or zoning violations.
- Zoning and permitting issues–Projects delayed or blocked by local land use restrictions.
- Construction and development disputes–Conflicts over timelines, payment, or quality of work.
- Landlord–tenant disputes–Disagreements regarding rent, maintenance responsibilities, or improvements.
Each of these disputes carries the potential to disrupt investments and create ripple effects across related business operations.
How Do Texas Courts Handle Real Estate Contract Disputes?
When real estate disputes escalate to litigation, Texas courts focus first on the contract language. Judges examine the parties’ intent and whether the terms are clear. Two common remedies include:
- Specific performance – Since real estate is unique, courts may require a buyer or seller to complete a transaction rather than simply paying damages.
- Monetary damages–If performance is not possible, courts may award financial compensation for losses caused by the breach.
The outcome often depends on how carefully the contract was drafted. Ambiguities can leave room for interpretation, which may extend the dispute and increase costs.
What Steps Should You Take if a Dispute Arises?
Addressing a real estate dispute quickly and strategically can prevent problems from spiraling. Business owners and investors should:
- Review the contract to determine rights, responsibilities, and remedies.
- Document all communications and gather evidence of property conditions or missed obligations.
- Explore negotiation or mediation before turning to the courts.
- Consult a business contracts attorney to assess risks and explore options.
Even when litigation seems likely, proactive steps at the outset can preserve leverage and protect valuable assets.
Can Alternative Dispute Resolution Help in Real Estate Cases?
Yes. Mediation and arbitration are increasingly common in commercial real estate disputes.
- Mediation enables parties to collaborate with a neutral third party to reach a mutually beneficial compromise. It’s typically faster, less expensive, and keeps matters private.
- Arbitration can be binding or nonbinding and may provide a middle ground between negotiation and litigation.
These approaches can preserve business relationships and resolve disputes efficiently, though they may not be appropriate in every case—especially when ownership or title is in question.
How Legal Counsel Supports Texas Real Estate Businesses
Commercial real estate disputes can feel daunting, but businesses don’t have to handle them alone. At Ryan G. Cole Law, we assist Texas business owners, investors, and developers in effectively managing disputes. Our work includes:
- Reviewing and negotiating contracts to reduce risk before deals close
- Advising clients when disputes arise and exploring cost-effective alternatives
- Representing clients in court when litigation is necessary to protect investments
We focus on strategies that align with business goals and safeguard long-term interests.
Protecting Your Investment in Real Estate Transactions
Disputes are an unfortunate reality in commercial real estate, but they do not have to derail your business. By understanding common issues and preparing for how they may be resolved, you can approach these challenges with confidence.
If you are facing a dispute in a commercial real estate transaction, Ryan G. Cole Law can provide the guidance you need to protect your investment and move forward. Contact us today to discuss your situation.