From traditional court battles over property rights to the modern complexities of digital transactions, the landscape of real estate litigation has completely transformed. If you’re in real estate, it’s essential to consider the future of real estate litigation and how to prepare for the potential challenges it could bring.
The History of Real Estate Litigation
In the past, real estate litigation primarily revolved around straightforward disputes over property ownership, boundary issues, and landlord-tenant conflicts. The legal process for resolving these various disputes was often lengthy and expensive, requiring extensive documentation and in-person court appearances. Legal proceedings required physical evidence, witness testimonies, and manual record-keeping.
Factors Changing Real Estate Litigation
Technological advancements changed the approach and process of real estate litigation. Over the decades, several factors drove these changes, including:
- Regulatory Changes – With new laws and standards emerging at the state, federal, and local levels, the regulatory aspect of real estate has become increasingly complex. Compliance issues can lead to litigation as parties face disputes over building codes, safety standards, and fair housing legislation.
- Technological Advancements – Introducing technology into court procedures alters how we conduct litigation and proceedings. Adopting electronic filings, virtual hearings, and digital evidence presentation streamlined the process, making it more straightforward to gather critical information to include in a case.
- Economic Fluctuations – Economic conditions have always impacted and influenced real estate litigation. The 2008 financial crisis led to a surge in foreclosure cases and disputes over mortgage defaults, and the COVID-19 pandemic created unique challenges, such as disputes over rent payments and enforcing force majeure clauses in commercial leases.
Current Trends in Real Estate Litigation
Embracing the factors that define and shape real estate litigation today helps deal with potential issues. These trends include:
- Alternative Dispute Resolution – Alternative dispute resolution methods such as mediation or arbitration can resolve disputes faster, more cost-effectively, and less adversarially than traditional litigation, making them attractive options for property owners and tenants.
- Environmental and Zoning Issues – Environmental concerns and zoning regulations have gained prominence recently. Disputes over land use, environmental impact assessments, and sustainability standards are becoming more common as awareness of climate change grows. Urban development and smart city initiatives have also led to more complex zoning disputes.
- Short-Term Rentals – The rise of platforms like Airbnb and VRBO has led to increased litigation involving short-term rentals. Many municipalities have enacted regulations or outright bans on short-term rentals to address concerns about neighborhood disruption or housing shortages. Property owners who operate these rentals often challenge these regulations, leading to disputes over zoning laws, licensing requirements, and property rights.
Future Trends in Real Estate Litigation
As the real estate sector continues to develop, it’s crucial to remain adaptable to new factors, trends, and patterns. Key future trends include:
- Data Privacy and Cybersecurity – As real estate transactions increasingly rely on digital platforms, litigation related to data breaches, privacy violations, and cybersecurity lapses will rise as property owners, developers, and real estate firms grapple with handling sensitive information and protecting customers’ data.
- Sustainability and Green Building Standards – As sustainability becomes a focal point of real estate development, disputes may arise over compliance with green certifications, environmental impact assessments, and adherence to sustainability commitments.
- Globalization and Cross-Border Disputes – The globalization of the real estate market means that cross-border disputes will become more common. Issues such as foreign investment regulations, international property rights, and cross-jurisdictional enforcement of judgments could present new legal obstacles.
Contact a New York Real Estate Lawyer
The evolution of real estate litigation mirrors the dynamic changes in technology, economics, and societal values. Staying informed about emerging trends and new legal challenges will be critical for real estate stakeholders. At Levy Goldenberg, we assist property owners with various issues by handling their legal concerns. No matter what the future holds, we can help. Contact us today to schedule a consultation.