Real Estate Litigation: Deals Gone 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 cannot agree, the matter moves from transactional practice to litigation. I 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, you must follow the notice and cure provisions 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 to 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. A lower standard than fraud: no intent to deceive is required.
• Violation of the Disclosure Act: Failure to provide the required disclosure form, or providing materially incomplete/inaccurate information. A seller who willfully or negligently violates the Act is liable for the buyer's actual damages (68 Pa.C.S. § 7311); the sale itself is not invalidated by a disclosure violation, and an action for those damages must be commenced within two years after final settlement. Rescission, where available, is a separate equitable remedy that generally rests on a common law fraud claim rather than the Act.

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. It 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 will not save them.

Statute of Limitations

Fraud claims: 2 years from discovery (not from the sale date). This matters because many defects do not manifest until months or years after closing. The discovery rule can extend the filing period, but you must act promptly once you find the defect. Property damage claims: 2 years under 42 Pa.C.S. § 5524(7).

Legal and factual content on this page was last verified: Sep. 2026. If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.