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What Is Real Estate Litigation, and When Should You Take It to Court?

Practice Area:Real Estate
Jurisdiction:Washington, D.C.

In a property dispute, filing the case can be the leverage.

A notice of pendency stops the property from moving. Filed alongside a claim affecting title or possession, it appears in the record and effectively halts a sale or refinancing while the case runs. For a plaintiff, that is often worth more than the judgment — which is why the decision to file comes early, before the merits are fully developed.

It also carries exposure. A notice filed without a proper basis can result in liability, and courts will cancel one that does not belong.

Real property is treated as unique, so a buyer whose seller refuses to close can compel the sale rather than settle for damages measured against it.

On the seller's side, the deposit usually stays. New York enforces forfeiture of a contract deposit against a defaulting purchaser without requiring proof of actual loss.

And fees are not recoverable. New York follows the American Rule, so absent a contract or statute providing otherwise, a prevailing party absorbs its own legal costs. That calculation, more than the merits, determines whether a dispute is worth litigating or worth resolving.



1. What Real Estate Litigation Covers


Real estate litigation is the process of resolving property disputes through the court system. It differs from transactional real estate work such as drafting contracts or closing deals. When negotiations break down and the financial or legal stakes are too significant to leave unresolved, litigation is the appropriate path.

Not every disagreement requires a lawsuit. But competing ownership claims, a buyer who abandoned a signed contract, or a contractor who left a property uninhabitable are situations where courts need to decide. The sooner you understand where your dispute falls on this spectrum, the better positioned you are to act.



2. Types of Property Disputes New York Courts Resolve


New York courts handle property conflicts ranging from boundary disagreements between neighbors to contested closings involving significant sums. The type of dispute determines which court has jurisdiction, what evidence you will need, and how long the matter is likely to take. Not every case follows the same path, which is why identifying the specific category of your dispute matters from the start.


Boundary and Survey Disputes

Boundary disputes arise from outdated surveys, fence placements, and encroachments by neighboring structures. Courts weigh deed history, survey records, and expert testimony from licensed surveyors to reach a determination.

Title Defects and Ownership Claims

A title defect is any unresolved claim, lien, or irregularity that prevents clear ownership. Common problems include forged documents, undisclosed heirs, and errors carried through prior deeds. A quiet title action is the New York proceeding used to resolve competing ownership claims and establish a clean title in the public record.

Breach of Purchase and Sale Agreements

When a buyer or seller fails to fulfill their contractual obligations, the injured party may bring a breach of contract claim. Common scenarios include a buyer walking away without contractual justification, a seller withholding known defects, or a closing that collapses due to misrepresentation. Courts may award monetary damages or order specific performance, requiring the parties to complete the transaction.

Landlord-Tenant Disputes

Non-payment of rent, wrongful eviction claims, habitability violations, and security deposit disputes frequently require court intervention in New York. The Real Property Actions and Proceedings Law (RPAPL) governs eviction procedures under state law, and both landlords and tenants hold specific statutory rights. Our attorneys handle landlord-tenant matters across Housing Court and Supreme Court proceedings.

Construction Defects and Property Damage

When a contractor delivers substandard work, the property owner may pursue claims for repair costs, loss in property value, or consequential losses. Construction defect litigation typically requires expert testimony from engineers or architects to establish the scope and cause of the defect.

Dispute TypeCommon Legal Remedy
Boundary encroachmentInjunction, damages
Title defectQuiet title action
Contract breachSpecific performance, damages
Wrongful evictionDamages, injunctive relief
Construction defectCost of repair, loss of value

Boundary encroachment

  • Common Legal RemedyInjunction, damages

Title defect

  • Common Legal RemedyQuiet title action

Contract breach

  • Common Legal RemedySpecific performance, damages

Wrongful eviction

  • Common Legal RemedyDamages, injunctive relief

Construction defect

  • Common Legal RemedyCost of repair, loss of value

3. How Real Estate Litigation Works in New York


In New York, most contested real estate matters are heard in Supreme Court, the state's trial court of general jurisdiction. Landlord-tenant cases may go to Housing Court or Civil Court depending on the proceeding type and the amount at issue. The process follows a defined structure, but the timeline varies based on how complex the evidence is and whether the parties reach a settlement before trial.


Filing and Pre-Trial Steps

Litigation begins when the plaintiff files a complaint and serves it on the defendant. The defendant then has an opportunity to respond, and both sides enter the discovery phase.

Discovery, Motions, and Negotiation

During discovery, each party collects evidence through document requests, depositions, and interrogatories. Either party may file pretrial motions to narrow the issues before trial. Most cases settle during or after discovery, once the evidence gives both sides a clearer view of the risks involved.

Trial and Resolution

Cases that do not settle proceed to trial before a judge or jury. A judgment issues at the conclusion of trial, and either party may appeal. Most contested real estate cases in New York resolve within twelve to twenty-four months, though disputes involving complex title history or multiple parties may take longer.


4. When Alternative Dispute Resolution Is a Better Option


Court litigation is not always the right choice, and in some situations it is not even the first option available. Alternative dispute resolution, particularly mediation and arbitration, resolves many property conflicts faster and at lower cost. The right approach depends on the contract terms, the relationship between the parties, and how quickly the matter needs to be settled.

Mediation uses a neutral third party to facilitate negotiation. The process is non-binding, so either party can walk away if discussions reach an impasse. It works well when the parties want direct input into the outcome or need to preserve an ongoing business or property relationship.

Arbitration is more formal. An arbitrator hears both sides and issues a binding decision. Many commercial real estate contracts in New York include arbitration clauses requiring this process before a court case can be filed.



5. What Real Estate Litigation Costs and What You Can Recover


Cost is often the first concern when property owners consider legal action, and it is a fair one. Litigation expenses can accumulate throughout a case, and the remedies available depend on the specific type of claim and the facts involved.


Legal Fee Structures

Real estate litigation is billed on an hourly basis in most cases, though certain claims may qualify for a contingency arrangement depending on the nature of the dispute. Additional costs include court filing fees, expert witness fees, and deposition expenses.

Types of Recoverable Remedies

RemedyDescription
Compensatory damagesFinancial losses directly caused by the dispute
Consequential damagesIndirect losses flowing from the breach or wrongful act
Specific performanceCourt order requiring completion of a transaction
Injunctive reliefCourt order prohibiting or compelling a specific action
Attorney's feesRecoverable when a contract or applicable statute provides for them

Compensatory damages

  • DescriptionFinancial losses directly caused by the dispute

Consequential damages

  • DescriptionIndirect losses flowing from the breach or wrongful act

Specific performance

  • DescriptionCourt order requiring completion of a transaction

Injunctive relief

  • DescriptionCourt order prohibiting or compelling a specific action

Attorney's fees

  • DescriptionRecoverable when a contract or applicable statute provides for them

01 Jul, 2025


The information provided in this article is for general informational purposes only and does not constitute legal advice. Prior results do not guarantee a similar outcome. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
Certain informational content on this website may utilize technology-assisted drafting tools and is subject to attorney review.

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