Risks of Property Ownership

Some common risks of property ownership include the following:

(1) Liability for violation of zoning ordinances.

(2) Liability for environmental hazard clean-up.

(3) Liability to others who are injured on the property.

(4) Liability to others who are injured by the property, such as an uphill landowner’s responsibility when his land slides onto a downhill landowner’s property.

(5) Liability to third parties pursuant to a contract, such as a responsibility to make mortgage payments to the lender.

(6) Liability to a purchaser when a problem occurs in transferring title, interest, or possession of the property sold.

(7) Failing to properly maintain property or knowingly creating a condition that causes injury to another’s person or property, which could be determined as negligence with liability for the resulting harms and injuries. To reduce exposure from this ownership risk, you have an affirmative obligation to maintain your property in such a way as to not cause harm or injury to others.

Despite the risks inherent in owning real property, most people agree on the value from real property ownership.

Case Studies: Risks of Property Ownership

Case Study 1: Zoning Violation Liability

Mr. Johnson purchased a property with plans to build a commercial structure. However, he unknowingly violated zoning ordinances, leading to legal repercussions. He faced liability for non-compliance with local regulations, resulting in additional expenses and potential delays in his construction project.

Case Study 2: Environmental Hazard Cleanup Liability

Ms. Roberts owned a property that was discovered to have contamination from a previous industrial operation. As the current property owner, she was held responsible for the environmental hazard cleanup. This unexpected liability not only imposed financial burdens but also required extensive legal procedures to ensure compliance with environmental regulations.

Case Study 3: Injury Liability to Others

Mr. Anderson had a swimming pool on his property and failed to implement proper safety measures. Unfortunately, a guest visiting his property suffered a severe injury due to negligence. Mr. Anderson faced liability for the injury and was legally obligated to compensate the injured party for medical expenses and damages. This case highlights the importance of maintaining a safe environment and taking precautions to prevent harm to others.