Real Estate Purchase Contract Disputes
A real estate purchase contract is an agreement that parties enter into that governs the sale or purchase of a property. Generally, a real estate purchase agreement defines the particulars of the transaction and guides how the purchase or sale will occur. It is crucial that you ensure your purchase agreement is carefully put together. Ensuring your real estate purchase contract is carefully put together can help prevent hurdles or disputes. Also, taking time to put together a real estate purchase contract carefully can prove beneficial if a dispute arises.Steps to Take Before Signing a Real Estate Purchase Contract
There are several things you can do before signing a real estate purchase contract to help reduce the occurrence of disputes. One of the most vital things to do before entering into a real estate purchase contract is to consult a qualified real estate attorney. Ensure you ask as many questions as possible to the attorney.
The following are some other steps you can take before getting into a real estate purchase agreement;
- Hiring an inspector to check whether the property is safe
- Hiring an appraiser to confirm the value of the home
- Reviewing the contract carefully
- Talking to neighbors to gather details regarding the property or area
Examples of Real Estate Purchase Agreement Disputes
Real estate purchase contract disputes occur after parties enter the agreement but before the sale or purchase is concluded. One common real estate purchase agreement dispute is a closing cost disagreement. This type of dispute involves the agreed-upon value of the property. Other disagreements frequently comprise the failure to complete a contingency.Resolving a Real Estate Purchase Contract Dispute
Often, the way a real estate purchase contract dispute should be resolved is specified in the agreement. Typically, disputes are sorted out through mediation, arbitration, or the court.
Mediation involves working with an impartial third party called a mediator. The role of a mediator is to guide the conflicting parties toward a resolution. A mediator does not make the final decision.
Arbitration involves working with an impartial third party called an arbitrator, but unlike the case with mediation, an arbitrator makes the final decision.Possible Solutions for Breach of Real Estate Purchase Agreements
If a seller fails to abide by the terms of a real estate purchase contract, they are in breach of the contract. If there is no alternative dispute resolution section in the contract, the following are some of the possible solutions for the breach that may be available to the purchaser;
- Filing a lawsuit against the seller to recover damages
- Terminating the agreement and asking for a refund of any deposited money and payment of costs incurred
If a purchaser is in the wrong, the seller may, among other things, sue the purchaser or terminate the agreement and keep the good-faith deposit.Contact Us for Legal Help
If you are looking for legal guidance before you sign a real estate purchase agreement or need help dealing with a real estate purchase contract dispute, contact our experienced attorneys at SAC Attorney LLP.