Real Estate Litigation — When Transactions Go Wrong

Not every real estate matter resolves at the closing table. When transactions fall apart, when sellers conceal defects, when boundaries are disputed, or when co-owners can't agree — the matter moves from transactional practice to litigation. We handle both sides.

Common Real Estate Claims

Breach of Agreement of Sale: A buyer or seller fails to perform under the agreement. Remedies include specific performance (forcing the sale to close), damages, or return of the deposit. Under standard PAR (Pennsylvania Association of Realtors) agreements, the notice and cure provisions must be followed precisely — missing a deadline can waive your right to claim breach.

Seller Disclosure Fraud and Misrepresentation: Pennsylvania's Real Estate Seller Disclosure Law (68 Pa.C.S. §§ 7301–7315) requires sellers of residential property to complete a detailed disclosure form covering structural, mechanical, environmental, and legal conditions. If a seller knowingly fails to disclose a material defect — or affirmatively misrepresents a condition — the buyer may have claims for:

• Fraudulent misrepresentation: Seller knew of the defect and concealed it or lied about it. Requires proof of (1) a false representation of material fact, (2) made knowingly or recklessly, (3) with intent to induce reliance, (4) justifiable reliance by the buyer, and (5) resulting damages.
• Negligent misrepresentation: Seller carelessly provided inaccurate information. Lower standard than fraud — doesn't require intent to deceive.
• Violation of the Disclosure Act: Failure to provide the required disclosure form, or providing materially incomplete/inaccurate information. The Act provides for rescission (unwinding the sale) within limited timeframes, or damages.

Common undisclosed defects that lead to litigation: water infiltration and basement flooding, foundation problems, mold, termite/pest damage, septic system failures, unpermitted additions or renovations, boundary encroachments, environmental contamination, and neighborhood nuisance conditions the seller failed to disclose.

"As-Is" Clauses and Their Limits

Sellers often try to sell property "as-is" to avoid liability. In Pennsylvania, an as-is clause does not protect a seller who actively conceals known defects or commits fraud. The as-is clause shifts the risk of unknown defects to the buyer — but it does not license dishonesty. If the seller knew about a cracked foundation and checked "No" on the disclosure form, the as-is clause won't save them.

Statute of Limitations

Fraud claims: 2 years from discovery (not from the sale date). This is critical — many defects don't manifest until months or years after closing. The discovery rule can extend the filing period, but you must act promptly once the defect is discovered. Property damage claims: 2 years under 42 Pa.C.S. § 5524(4).