5 Common property litigation disputes & how to resolve them
Property disputes are rarely straightforward; in fact on the contrary, they are often rather stressful and legally demanding, so what is the answer?
Disputes, including the likes of rent arrears, repair obligations, service charges and boundaries, can escalate quickly if not handled properly, so understanding the most common types of property disputes can be a good way of preparing to protect yourself and limit unnecessary risk, find out more below.
#1 The Dispute: Rent Arrears
Rent arrears tend to come about when a tenant fails to pay rent in accordance with the terms of their lease or tenancy agreement. It is important to note that persistent arrears can place significant financial pressure on landlords and, if mishandled, may also expose them to procedural or legal risk.
Landlords do have a range of remedies available, but these must be carefully executed and in strict compliance with the law.
The Remedy
In commercial property matters, landlords may pursue remedies such as forfeiture, Commercial Rent Arrears Recovery (CRAR), or insolvency proceedings.
In residential cases, landlords must usually proceed through the courts, seeking possession or, in appropriate cases, pursuing bankruptcy proceedings.
The Legal Process
It is important to note that rent arrears enforcement is heavily regulated. Forfeiture and possession proceedings require strict adherence to statutory and procedural requirements, including the service of valid notices and correctly issued court applications.
Enforcement can become complicated if tenants challenge action by appealing or seeking to delay proceedings.
In commercial cases, insolvency proceedings may result in the closure of a tenant’s business, which can create further practical issues.
Early engagement is important. Prompt communication with tenants can often resolve arrears before formal action is needed.
Negotiation or mediation can help preserve the landlord-tenant relationship and secure payment.
#2 The Dispute: Dilapidations
Dilapidation disputes usually arise when a tenant does not meet repair obligations under a lease.
Claims are most often brought at the end of a tenancy, but landlords can also act during the term if repairs are not carried out.
Landlords usually serve a Schedule of Dilapidations, which sets out alleged breaches and costs. Tenants may challenge these claims, especially if they dispute the extent or necessity of the works.
The Remedy
The wording of the lease is central to resolving dilapidation issues.
Clear drafting at the outset helps prevent disputes. A property litigation solicitor can help structure lease terms to reduce ambiguity and future risk.
If a dispute arises, both parties need a clear understanding of the repair obligations in the lease. Accurate records of the property’s condition at the start of the tenancy are important for resolving disagreements.
The Legal Process
Dilapidation claims are governed by the Dilapidations Protocol, which sets out how disputes should be handled. Failure to follow the Protocol can lead to unnecessary cost and delay.
Involving a property litigation solicitor and a surveyor early helps ensure compliance with the Protocol and can improve the chances of resolving matters without formal proceedings.
#3 The Dispute: Service Charge
Service charge disputes often arise between landlords, managing agents, and tenants or leaseholders over the costs of maintaining and managing property. Disagreements often arise where charges are seen as excessive, unjustified or not transparent.
Common issues include the quality or necessity of works, alleged overcharging, or not consulting leaseholders on major works when required.
If charges are withheld, landlords or management companies may seek recovery. This process can be costly and time-consuming for everyone involved.
The Remedy
Under the Landlord and Tenant Act 1985, service charges must be reasonable, and landlords or managing agents must provide transparency, including supporting documentation.
Disputes often arise when the lease and statutory obligations are interpreted differently. Specialist advice can help resolve these legal issues.
The Legal Process
Alternative dispute resolution, such as mediation, can often provide a constructive and proportionate route to settlement.
Landlords and managing agents should ensure they comply with statutory obligations. Tenants should seek early advice to understand their rights and responsibilities. If negotiations fail, timely legal advice can help prevent disputes from escalating.
#4 The Dispute: Deposits
Deposit disputes often arise at the end of residential tenancies, usually over alleged damage, unpaid rent, or non-compliance with tenancy obligations.
Under the Housing Act 2004, landlords must protect a tenant’s deposit in a government-authorised Tenancy Deposit Scheme (TDS). Failure to do so can prevent the service of a valid Section 21 notice and may expose landlords to financial penalties.
The Remedy
Landlords are required to provide prescribed information explaining how the deposit is protected and how disputes will be resolved.
The TDS provides a free dispute resolution service, offering a quicker and more cost-effective alternative to court proceedings.
Tenants can challenge unjustified deductions either through the scheme or, if necessary, by legal action.
The Legal Process
Clear documentation is essential. Inventory reports, photographs and condition schedules at the start and end of the tenancy are central to resolving disputes.
If rights and obligations are unclear, early advice from a property litigation solicitor is advisable. It is essential to ensure deposits are correctly protected and prescribed information is provided in full.
#5 The Dispute: Boundaries
Boundary disputes arise when neighbouring owners disagree about the exact extent of their properties. These disputes can result from unclear title documents, changes to the land, or misunderstandings over time.
Resolving the dispute usually requires examination of title deeds, plans and historical evidence.
Claims of adverse possession can make matters more complicated, especially where land has been occupied without permission for a long time.
Disputes may also arise under the Access to Neighbouring Land Act 1992, where access is required for repairs or maintenance and is refused.
The Remedy
Early legal advice is important. A property litigation solicitor can review title documents and advise on your position. In many cases, a specialist surveyor will also be needed to establish the boundary.
The Legal Process
Negotiation or mediation can often resolve matters without court proceedings. If this is not possible, formal legal action may be needed, such as applications for boundary declarations or injunctions.
Claims involving adverse possession or disputed boundaries should be addressed promptly. Delay can weaken your position and limit available remedies.
Resolving Property Disputes with Orwins
Property disputes can have serious financial and practical consequences. Acting early is essential.
At Orwins, our property litigation solicitors provide direct, tailored advice for each dispute. We focus on proportionate resolution, whether through negotiation, mediation or court proceedings.
If you are facing a property dispute, contact Orwins to discuss your position confidentially and understand the options available to you.
