Real estate has long been regarded as one of the best investments anyone can make, but it can be complex. It’s not a traditional instrument, like an interest-earning savings account or a security like a bond, and developers must put a lot of time and work into real estate before it turns a profit. Real estate developers in California should be aware of the litigation that can arise from their activities.

Restrictions on development

In California, zoning is an issue that all developers need to be aware of. Common zoning distinctions include residential, commercial and recreational. Developers must abide by a community’s zoning restrictions, or they risk expensive fines and protracted court battles.

Some developers don’t just build new property; they may be redeveloping or adding onto an existing site. In California, there are restrictions on how much historic buildings can be modified. For example, sites like the Southwestern Museum are desirable because of their pasts. However, the historic nature of a building also makes it difficult to repurpose it without violating state codes.

Logistical issues

Real estate development tends to involve a lot of different contractors and subcontractors in addition to the developers. There is also often financing from outside lenders like banks or private investors. Usually, the nature of these relationships is formalized in contracts outlining the rights and responsibilities of each party. Even so, it’s not uncommon for disputes to arise.

When real estate disputes become a reality, developers may want to seek help from experienced counsel. Attorneys who understand the nuances of contracts and business litigation may be able to help their clients get the results they deserve in the courtroom. Developers might look for lawyers with a track record of successfully resolving claims and having claims dismissed.