Most Common Disputes After the Close of Escrow– Avoid Them

The most common disputes that arise between buyers and sellers after the close of escrow. Having personally dealt with all of these issues, I make it a priority to ensure that proper due diligence is performed on every transaction I'm involved in — whether I'm representing the buyer or the seller. Here's what you need to know.

Drainage Problems and Foundation Issues

This is one of the most frequent problems we see in the Bay Area, largely due to the age of many homes and inadequate preventative measures over the years. Last winter's heavy rains made this especially apparent, as many properties experienced significant water damage. Unfortunately, sellers often fail to fully disclose the extent of these issues, leaving buyers to discover the problems only after they've already moved in.

Lack of Permitting and Poor Construction

Unpermitted work is incredibly common, and it's one of the issues I see most often in my transactions. Many homeowners take on additions or conversions themselves — converting a garage into a living space, adding a bathroom, or building out an extra room — without pulling the proper permits or hiring a licensed contractor. When this work goes undisclosed, the new buyer inherits all of the liability that comes with it.

Easement and Boundary Disputes

Not every neighbor dispute is about noise or landscaping. Sometimes it comes down to who has access to what. Shared driveways, fence lines that don't align with property boundaries, and informal agreements between neighbors are all details that can go overlooked during a transaction. When a new buyer steps in, they may not be willing to honor those same arrangements — and that's when disputes arise.

The bottom line is this: working with the right agent makes all the difference. When selling, your agent should know how to properly disclose these issues. When buying, they should know exactly what to look for before you ever sign on the dotted line. The last thing anyone wants is to close on their dream home only to find themselves in a legal battle months later.