While the best way to resolve commercial real estate purchase disputes is probably to avoid them altogether, these important and often high-dollar transactions can erupt into heated disputes. If you find yourself embroiled in a commercial real estate purchase dispute, the best advice is always to immediately seek legal counsel and representation at the outset of the dispute, when the potential for quicker and less expensive resolution is greater.
Many real estate disputes arise from specific contract provisions; it is not unusual for one party to feel that the other party has failed to live up to their contractual obligations. For example, the buyer may allege that the seller failed to disclose certain defects in the property, as required by the purchase agreement. This type of dispute can occur at the closing of the sale–or even after closing where the seller arguably should have disclosed the defect during closing.
Similarly, one party to the contract may believe that they have met the terms of a contingency provision outlined in the contract, which allows them to abandon the contract. Not surprisingly, the other party may disagree with that party’s interpretation of the contract and wish to hold that party to the contract.
Aside from specific contract provisions, Arizona law also provides for implied duties for each party to a real estate purchase agreement or contract. More specifically, there is an implied duty of good faith and fair dealing in every contract. Acting in good faith means that a party should act in a way that fulfills the reasonable expectations of both parties at the time that they entered into the contract. A party acts in bad faith—and breaches the implied covenant—by preventing the other party from obtaining the benefits of the bargain. Acting fairly and reasonably is crucial because even if there has been no breach of specific contract provision, the breach of the implied covenant of good faith and fair dealing is an entirely separate cause of action from a claim for the violation of an express contractual term.
Fortunately, there are potentially several different ways to handle commercial real estate purchase disputes in the state of Arizona. We are here to determine the facts and circumstances surrounding your dispute, evaluate your case, and determine the best strategy for resolution. At Williams Mestaz, L.L.P., we have the experience and knowledge that you need for your business dispute. When results matter, contact Williams Mestaz, L.L.P., at (602) 256-9400 for help.