Top 5 Common Property Litigation Disputes and How to Resolve Them

Property disputes can be stressful and time-consuming, often arising from issues relating to boundaries, responsibility for repairs, or rent arrears. Understanding common property conflicts and knowing how to resolve them is essential for protecting your rights and investments.

Many people encounter property disputes at some point, making it vital to recognise strategies for preventing escalation. Below is a guide to five most frequent types of property litigation, along with practical resolution strategies.

Disagreements regarding the ownership, possession, or use of commercial or residential property can lead to significant emotional and financial strain. As experienced property litigation solicitors, we understand the challenges these disputes present and emphasise the importance of having a clear resolution approach.

1. Rent arrears

Rent arrears arise when Tenants fail to pay rent as required by their Lease or tenancy agreement. This can result in financial difficulties for Landlords, particularly if the arrears persist. To address this issue, Landlords have several legal options available, but these remedies must be handled with care to avoid further complications.

Legal implications and challenges:

When dealing with commercial rent arrears, Landlords can pursue remedies such as forfeiture, Commercial Rent Arrears Recovery, and Insolvency Proceedings, 

In residential cases, the Landlord can issue County Court Proceedings, seek to recover possession or issue bankruptcy proceedings. 

However, these processes come with significant legal challenges. For example, forfeiture and possession proceedings require strict adherence to legal protocols, including serving valid notices and filing court applications. 

Enforcement can be complex, especially if Tenants resist by filing appeals or applying for stays of execution. Additionally, in commercial cases, winding-up proceedings can result in the closure of the Tenant’s business, further complicating matters.

Guidance:

To resolve rent arrears disputes effectively, Landlords should act swiftly and follow all legal steps meticulously. Early communication with Tenants is advisable, as it can often lead to a resolution without resorting to costly legal action. 

Mediation or negotiation may help preserve the Landlord-Tenant relationship while addressing the arrears. 

If legal action is necessary, it is essential to ensure that all proceedings are handled properly to minimise risks and achieve the desired outcome efficiently.

2. Dilapidations disputes 

Dilapidations disputes commonly arise when a Tenant has not met the repair obligations set out in their Lease. Landlords typically make dilapidation claims at the end of a tenancy, though these claims can also occur during the Lease term if the Tenant has not kept the property in the agreed-upon condition. 

Most disputes over dilapidations stem from disagreements between Landlords and Tenants regarding the scope of necessary repairs and the cost of bringing the property back to its original condition. Landlords will often serve Tenants with a Schedule of Dilapidations, detailing the disrepair and associated costs, which can lead to disputes if Tenants challenge the expenses claimed. 

Legal implications and challenges: 

In dilapidation cases, Lease terms are critical. Both parties must have a clear understanding of their repair obligations as set out in the Lease. Accurate documentation of the property’s condition at the start of the tenancy can help resolve any disputes more efficiently. 

Guidance: 

To avoid costly legal proceedings, Landlords should ensure they maintain detailed records of the property’s condition from the start of the Lease. In the event of a dilapidation dispute, both parties must follow the established Dilapidations Protocol, which governs how such claims should be managed. 

Engaging a solicitor and surveyor early in the process can ensure that the Protocol is properly followed and help bring disputes to a quicker resolution.

3. Service charge disputes

Service charge disputes commonly occur between Landlords and Tenants (or Leaseholders) over the costs of maintaining and managing a property. Leaseholders are typically required to pay these charges, outlined in their Lease agreements.

Disputes often arise when Tenants feel the charges are excessive, unjustified, or lack transparency. Key triggers include disagreements over the necessity or quality of work, perceived overcharging, or the failure of Landlords to consult Tenants on major works, as legally required.

In some instances, Tenants may withhold payment, leading Landlords or management companies to pursue recovery of the outstanding amounts. This process, however, can be both time-consuming and costly for everyone involved.

Legal implications and challenges:

Service charge disputes often involve complex legal issues due to differing interpretations of Lease agreements and statutory protections. The Landlord and Tenant Act 1985 requires that service charge costs be reasonable, and that Landlords or management companies provide transparency, including necessary documentation on how charges are calculated.

Failure to comply with these requirements can escalate disputes, particularly when Tenants are dissatisfied with the services provided or feel overcharged. These legal nuances make resolving disputes challenging, as both parties may interpret the Lease and law differently.

Guidance:

To resolve disputes efficiently, alternative dispute resolution methods like mediation can help avoid costly legal battles and foster constructive dialogue. Landlords and management companies must adhere to the Landlord and Tenant Act 1985 by ensuring charges are reasonable and transparent. An independent audit may also clarify disputed charges.

If negotiations fail, seeking early legal advice is crucial to ensure Lease terms are properly understood and followed, leading to quicker and less stressful resolutions for both parties.

4. Deposit disputes

Deposit disputes commonly arise at the end of a residential tenancy agreement when Landlords and Tenants disagree over the return of a security deposit. These conflicts can stem from various issues related to the condition of the property, financial obligations, and compliance with the terms of the tenancy agreement. 

Legal implications and challenges:

Under the Housing Act 2004, Landlords are required to secure a Tenant’s deposit in a government-authorised Tenancy Deposit Scheme (TDS). Non-compliance can hinder Landlords from issuing a valid Section 21 notice for eviction and may result in penalties, including compensation to the Tenant of up to three times the deposit amount. A Tenant can be awarded additional compensation if there are multiple breaches

Further, Landlords must provide Tenants with specific information regarding the deposit protection, including details about the TDS, the process for deposit release, and dispute resolution procedures. 

The TDS offers a free dispute resolution service to address disagreements over deposit returns, providing a faster and more cost-effective alternative to court proceedings.

Tenants have the right to contest deductions they consider unjustified. They can utilise the TDS dispute resolution service or pursue legal action if necessary.

Delays in resolving disputes can hinder the return of deposits, placing financial strain on Tenants who may need the funds for new rental arrangements.

Guidance 

Maintain comprehensive records of the property’s condition before and after the tenancy, including inventory reports and photographs. This documentation is vital for addressing damage-related disputes.

Additionally, foster open lines of communication with the Tenant to address any issues directly and work towards an amicable resolution before escalating the matter. However, if a mutual agreement cannot be achieved, engage the TDS’s free dispute resolution service. This service can facilitate conflict resolution without resorting to court.

If the dispute is particularly complex or if there is uncertainty about rights and obligations under the tenancy agreement and relevant laws, consider obtaining legal advice.

Ensure that any Deposit is protected in a government authorised TDS scheme and serve the prescribed information relating to the deposit in accordance with the rules.

5. Boundary disputes

Boundary disputes occur between neighbouring property owners regarding the precise location of the boundary line that separates their properties. These disagreements can arise from various factors, including unclear property deeds, physical changes to the land, and misunderstandings between neighbours. Such disputes are common in English law and can be stressful, time-consuming, and costly to resolve.

Legal implications and challenges:

The primary legal issue is identifying the exact legal boundary between properties, often requiring a review of property deeds and historical maps.

A neighbour may claim ownership of disputed land through adverse possession, which occurs when someone occupies land without permission for a legally defined period. This claim can complicate dispute resolution.

Under the Access to Neighbouring Land Act 1992, property owners may need to access adjacent land for maintenance or repairs. Disputes can arise if access is denied, potentially requiring legal intervention.

Resolving boundary disputes can be expensive and time-consuming, often involving legal fees, surveyor costs, and court proceedings.

Guidance: 

Begin by examining property deeds, maps, and any other legal documents that define the boundary to clarify your position. Retaining a professional surveyor can accurately determine the boundary line and provide supporting evidence.

Engaging in direct negotiation or mediation with your neighbour can lead to a mutually acceptable resolution without legal action. If an amicable resolution is not possible, legal action may be necessary, such as applying to the court for a boundary declaration or seeking an injunction to prevent further encroachment.

If a neighbour asserts a claim of adverse possession, seek legal advice to understand the implications and the process for defending against or asserting such a claim.

Taking action

To protect your rights and investments, it is essential to address property disputes promptly and strategically. By utilising the approaches outlined in this guide—such as early negotiations, mediation, and seeking legal advice—you can resolve conflicts efficiently and avoid unnecessary stress and costs. Taking proactive steps now can help ensure a fair and timely outcome.