Real estate transactions in Guam can be complex, especially for local residents and foreign investors. It is important for those who are building their real estate portfolio to understand potential disputes. Business leaders looking to purchase property and real estate investors can mitigate the risk of getting caught up in these same issues by knowing some of the more common disputes that often arise during these transactions. Four examples include the following.
1. Title disputes
Title disputes involve conflicting claims to property ownership. These disputes can arise due to unclear titles, boundary discrepancies, or historical inaccuracies. Buyers and investors can reduce the risk of this issue by conducting thorough due diligence. A title search can uncover potential issues before the transaction is complete. This can provide an opportunity to negotiate resolutions before fully committing to the transaction.
2. Boundary disputes
Boundary disputes occur when neighboring properties have conflicting boundaries. These disagreements can lead to encroachments, disagreements over fences, or unauthorized use of land. You can mitigate this risk by ensuring the property lines are properly defining prior to closing the deal.
3. Breach of contract
Contracts are the backbone of real estate transactions. Breach of contract disputes may arise if either party fails to fulfill their obligations. Common contract breaches include missed deadlines, incomplete repairs, or failure to disclose material information. Carefully review the provisions of the contract to make sure they are in line with your interests. Remember, you do not need to use boiler plate fill-in-the-blank documents provided by the seller. You can have these documents reviewed, changed, and tailored to your needs.
4. Zoning violations
Zoning regulations dictate the use of property. Violations occur when a property owner uses their land in a way that violates zoning laws. These disputes can lead to fines, forced changes, or even property seizure. Zoning disputes can set back development plans and lead to costly delays.
Navigating real estate disputes in Guam requires legal expertise. Seek assistance from experienced attorneys who understand local regulations and international real estate law. Whether purchasing existing properties or developing new ones, a strong legal foundation ensures successful operations in the long term.