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Property Developer Dispute

Property Developer Disputes

Property development projects operate on tight budgets and schedules, with numerous stakeholders involved in the process.

Without proper management, disputes can and do arise which can lead to delays and dissatisfaction, not to mention eat into the profitability of a project.

Whether you’re a developer, investor, landowner, or property manager you may be involved in a dispute with one of your partners.

In some instances, these disputes may end up in court or arbitration, while in others, resolving them through negotiation may be the best approach. Our network of property developer dispute solicitors can assist you if you are in a dispute with a developer and you want to raise a formal complaint or seek compensation.

Get in touch with us today for a free case evaluation.

Why do property development disputes happen?

Property disputes can happen for a huge variety of reasons. Whether it's a lease renewal conflict, a newly built home with defects, or properties not being ready on time, disputes with developers happen regularly and should be prepared for.

What are the common causes of property developer disputes?

Some of the main causes of property development disputes include:

• Properties not being ready on time stopping tenants or homeowners from moving in.

• Property defects discovered after the building has been completed can lead to legal action against a developer.

• Payment issues.

• Property damage.

• Changes in scope from what was originally agreed.

• Planning permission delays.

• Building control issues.

• Neighbours disagree about property boundaries including shared walls, fences, and boundary markers such as trees and hedges.

• Ownership disputes about who owns a property when titles aren’t clear about ownership, or there are conflicting claims on a property.

• Use disputes, such as commercial property being used for residential purposes.

• Resource disputes where it isn't always clear who has access to amenities and resources.

What is the legal process of a property development dispute?

Most property disputes can be smoothed over by open discussions with the other party. To navigate the situation effectively you should start by understanding the history and nature of the dispute and what obligation each party has. 

Understanding how the dispute arose will give you a chance to get clarity over the key issues that have caused the rift and the other parties involved. 

You can then review all the relevant documentation involved in the transaction. 

This might include:

• Leases

• Deeds

• Contracts

• Agreements

By reviewing the documents associated with your relationships with the other parties and your legal obligations you’ll be able to point out where they have breached the terms of the contract between you.

Do you have to go to court to settle property developer disputes?

In some cases, property developer disputes end in litigation. These cases are usually handled by The Technology and Construction Court. 

This is the case when a dispute can’t be resolved by negotiation. However, many disputes can be resolved by alternative dispute resolution (ADR) methods including arbitration. 

Under the right circumstances, some parties choose to resolve their disputes via arbitration. This is a process where an independent mediator known as an arbitrator assesses the dispute and makes a legally binding decision.

Arbitration is usually a more cost-effective method of dispute resolution than court proceedings, it can also be more time-efficient.

Mediation is another form of alternative dispute resolution carried out by an independent mediator. Usually, all parties will be in the same room as the mediation process unfolds. Unlike arbitration, it doesn’t have to end in a legally binding agreement unless all parties agree. 

Negotiated settlements are an alternative to arbitration and court settlements. With the assistance of property dispute solicitors, each party’s case will be assessed individually and they’ll advise each on the best route forward depending on their goals. 

The following issues can be resolved:

• Service charge disputes

• Rent, ground rent, and service charge arrears

• Rights to light

• Oversailing (structures that overhang neighbouring properties)

• Trespassers on the development.

In the course of a property developer dispute, both parties want to avoid costly and drawn-out legal battles that can eat into the profitability of a project.

Through Lawhive, your assigned property developer dispute lawyer will focus on resolving the issue quickly, starting with negotiations and alternative dispute resolution.

However, if court proceedings can't be avoided, your commercial property lawyer will support you through the litigation process, advocating for your interests every step of the way.

To find out more, contact us for a free case evaluation.

What factors determine whether a property developer dispute goes to court?

Whether a dispute goes to court or can be resolved through arbitration or negotiated settlements depends on the nature of the dispute and its complexity. 

If the potential of getting an agreement via ADR is low going to court may be the only option to resolve an issue and get a ruling in your favour. 

Complex cases too cannot always be resolved using ADR and may require a judge to reach a legally binding decision. 

When mediation or arbitration has been attempted and it has failed the logical progression and end game for a dispute is to begin a court case.

When the parties involved have a particularly contentious dispute, they may agree that court proceedings are the only way to solve their differences.

Property disputes may also go to court when one party needs urgent action to prevent an action from happening. They may require a property under construction to be paused, there may be urgent maintenance issues required before the building can proceed or an injunction to prevent property rights from being violated may be required.  

When disputes over legal documents like leases, deeds, and contracts arise and ADR fails both parties may agree they cannot reach a decision together and opt for court proceedings.

If a judgment has already been issued and a party doesn’t comply further court action may be required to ensure they comply.

How to avoid property developer disputes

When property disputes go on for a length of time they can get heated. If possible, it is best to avoid disputes entirely because they can become expensive because of the costs of legal support and potential court action.

The best way to avoid property developer disputes is to be clear, open, and transparent in all communication. If there is an issue it can then be resolved as early as possible so that it doesn’t develop into a dispute.

It is important to be willing to consider reasonable solutions and compromise, rather than being hard-nosed and pursuing your ends without considering how this will impact the other party.

When looking to partner with a property developer to carry out your property plans make sure to always carefully research them. You can review previous case studies of their work and check out testimonials and review photos of their completed work.

You can also review a limited company's financial record on Companies House, and look for any irregularities or signs of poor financial management. These are red flags that should put you off working with a developer.

Builders that belong to trade associations are a green flag when researching reliable builders. By being a member of a trade association, their work has been approved as high quality. 

Is a developer insured? Property damage is one common cause of developer disputes. With liability insurance in place, you’ll be able to claim if their work is defective or they damage your property. 

Ensure your contract is ironclad and there are sufficient clauses protecting your interest. Our network of property developer solicitors can review any contracts or agreements you have with developers to make sure you have the requisite protections in place.

How can Lawhive help?

If you are already involved in a property developer dispute or you want protection to prevent one from arising in the future our experienced lawyers can help.

Contact us today for a free case evaluation and no-obligation quote.