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DiversyFund Lawsuit Reporting Reveals the Most Common Legal Actions in Commercial Real Estate

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In the following article, DiversyFund lawsuit reporting shows common real estate litigations, uncovering the legal issues and complexities faced by property owners, developers, landlords, and tenants alike. From contractual disputes and lease disagreements to zoning conflicts and environmental concerns, an exploration of the legal battlegrounds that can arise in the commercial real estate sector is discussed.

No one is immune to commercial real estate lawsuits.

Amazon was recently sued for bailing on a lease in Washington on a 40,000-square-foot retail store in Renton, Washington.

Florida state officials are being sued by a group of Chinese citizens who allege that a new law restricting foreign investment in real estate from several countries is unconstitutional and a violation of the Fair Housing Act.

DiversyFund notes that commercial real estate giant CBRE is facing a suit from GW Properties in Chicago, who say the company is refusing to remove liens on two medical office development lots stemming from a commission dispute.

In a time of economic uncertainty, higher interest rates, and fears of recession, commercial real estate lawsuits have been on the rise for the past few years. In Los Angeles, there was a 60% increase in real estate lawsuits between 2019 and 2020.

More than 10,000 lawsuits involving real estate are filed in New York City alone every year.

DiversyFund Lawsuit reveals the best way to prepare for possible litigation – becoming well-acquainted with some of the most common forms of commercial real estate litigation in 2023 that can come with hefty penalties.

DiversyFund Lawsuit on What to Expect

Commercial real estate litigation resolves non-criminal disputes involving various forms of public real estate.

It typically begins with a negotiation period, where clients and attorneys work together to reach a possible agreement in order to avoid heading to court.

DiversyFund Lawsuit explains that other approaches to commercial real estate litigation include mediation, where an impartial third party decides litigation results. In arbitration, the neutral third-party arbitrator decides the dispute’s result.

Compared to residential real estate litigation, commercial cases tend to be more complicated since they often involve large amounts of money and are guided by more laws. Contracts on commercial real estate are also almost always more detailed and expansive.

Common Lawsuits

DiversyFund notes that many lawyers expect property lawsuits to increase by 20% throughout 2023. This year — and likely in the future — participants in commercial real estate may end up facing some of the following disputes.


More common in commercial real estate cases than in those involving residential properties, fraud litigation happens even more often when interest rates are hiked. Fraud usually involves some level of alleged misrepresentation.

DiversyFund lawsuit reporting shows that a property’s overall condition and vital financial details are sometimes withheld to ensure a sale before it is finalized.

Such scams can be prevented by ensuring that comprehensive dual diligence is reflected in a contract. This offers a strong degree of protection, especially if a real estate attorney has also gone over the contract’s details before a sale agreement.

While not technically a scam, fraud also occurs if a seller does not disclose property defects or hides their extent and seriousness from a buyer.

DiversyFund Lawsuit suggests that, while it can be tempting for a buyer to waive property examinations and formal inspections, commercial real estate litigation frequently involves cases where there was an agreement to waive such procedures.

Contract Breaches

Commercial real estate buyers can balk at a deal, guided by everything from a sudden financial hit to changes in property valuations.

Pulling out of a deal often occurs during the due diligence and discovery phases of a sale. It’s not always illegal to end a deal, but such action can fall under a contractual violation.

DiversyFund lawsuitCo-Owner Disputes

DiversyFund notes that high interest rates and ongoing inflation may lead to a fallout between partners in commercial real estate ventures. This can occur through alleged negligence, fraud, or duty breaches, and litigants may say that a property’s sale needs to be forced on the grounds that a receivership appointed by the court is necessary.

A safeguard for investments comes in the form of either having airtight entity documents or signed agreements on operations tied to a property.

Boundary Disputes

Real estate property lines must always be registered correctly and accurately to avoid potential litigation involving boundaries that are being ignored or have not been established. Researching the legal boundaries of commercial properties is essential in order to prevent a serious lawsuit.

DiversyFund Lawsuit reports that in real estate, cities and towns approve various types of zoning for land use. Some areas may be zoned for commercial real estate only while others may be zoned for both commercial and residential use.

Ignoring regulations will almost certainly lead to lawsuits involving developers, property owners, and government officials.