While the vast majority of real estate transactions go off without a hitch, occasionally there has to be more formal intervention between the two (or more) sides involved. Real estate disputes can arise for a variety of reasons, including disagreements between realtors and homebuyers, misunderstandings between buyers and sellers and even arguments between brokers and agents. Mediation and the homebuying process sometimes go hand in hand.
Arbitration Clauses in Real Estate Agreements
Whenever you purchase real estate, you sign many different papers that agree to many different things. One of the many papers that some people sign is a mandatory arbitration agreement. This means that, if there is a dispute about the transaction, like the buyer believing the seller did not properly disclose an issue with the property, arbitration must be used as an alternative to a traditional court case. Instead of taking things in front of a judge, you will work with an arbitrator to resolve things.
Mediation and the Homebuying Process
In other cases, and sometimes preferable to arbitration, is mediation. Mediation and the homebuying process can become intertwined when there is a problem during the real estate transaction. In many cases, communication and negotiation can resolve disputes. During mediation and the homebuying process, both parties will use a trained third party to resolve things. Mediators do not render legally-binding decisions or pass any formal judgment on the situation. Instead, they work to open lines of communication, identify what the core issues are and bring everyone into an agreement on what should be done.
In general, mediation offers many benefits that arbitration does not. It is typically simpler, faster and less expensive than traditional litigation. It also is not adversarial, as both parties have worked together to reach an outcome. In court, the judge will render a decision that typically defines a “winner” and a “loser.” Mediation merely works to make a bad situation into a good, or better, situation for both of the parties involved. Mediation can be used with any parties involved in a real estate transaction, including home inspectors, homebuyers, home sellers, brokers, builders and real estate agents.
Get Help with Real Estate Mediation in Maryland with Lebovitz Law
If you are searching to determine whether or not a problem with your new home is a latent defect or get assistance with mediation and the homebuying process, Lebovitz Law can help. To learn more about how we can assist you, please contact us today.