The Basics of Property Dispute Mediation

Mediation, Real Estate Laws

property dispute mediationIf you find yourself in the middle of a real estate or boundary dispute, you need to learn about your state’s (or your home’s state) real estate laws and regulations. These real estate laws can be difficult to navigate and shouldn’t be attempted without the consultation of a professional.

When seeking to resolve a property dispute, invested parties have three general options:

  1. Negotiation
  2. Arbitration
  3. Mediation

A settlement reached by both parties without the help of a neutral third-party is considered a negotiation. Many real estate agents and brokers negotiate to solve issues that arise during the home buying and selling process. For instance, the National Association of Realtors recommends doing a walk-through and inspection of a home before completing the purchase. If a homeowner accidentally puts a hole in the wall while moving out and the buyer sees it during the final walk-through, the real estate agent may offer to pay for the repairs to keep the buyer from pursuing further action.

Arbitration is considered the most common avenue chosen for settling real estate disputes. This requires a third party to come and make a final settlement decision that both parties must adhere to. Each state has strict regulations regarding proper foreclosure as well as opportunities to pay before the property is sold. If a homeowner feels that they haven’t received proper opportunities to pay the bank, they can pursue arbitration.

Mediation is an ideal way to resolve a dispute that can’t be settled between two parties who refuse to pursue arbitration. Property dispute mediation entails a neutral third party stepping in to help those involved come to a mutual agreement. A mediator doesn’t make an ultimate decision for the settlement, but instead helps guide the feuding parties to a compromise that satisfies both. This method can be pursued as a last-ditch effort before seeking arbitration.

Mediation is the perfect way to solve breaches of contract. A real estate purchase contract outlines the timeline of the home buying and selling process, including a closing date. If either parties fall outside of that timeline and a dispute arises, property dispute mediation can remedy the situation.

Property dispute mediation is an avenue that many homeowners and real estate agents choose when an issue arises. While the causes of disputes vary from breech of contract to eviction, mediation allows both sides to be heard, making it a popular choice for those hoping to find a solution without getting a real estate lawyer involved.

Quick Look: How to Settle a Real Estate Dispute

Real Estate Laws

real estate disputeWhile there are many factors that contribute to a successful settlement of a real estate dispute, educating yourself on the fundamentals of settling such a dispute can help prepare you. When it comes to real estate law, there are common causes of dispute, such as:

  • Foreclosure: Out of every 200 homes, one will be foreclosed upon. Foreclosure is strictly regulated by each state, requiring proper notices and opportunities to pay before the property is sold in a foreclosure sale. It is recommended that you seek the assistance of a real estate lawyer as soon as you are threatened with foreclosure.

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  • Breach of contract: When you’ve become a party included in a purchase contract, the length of time the process takes will be outlined in your real estate contract. A closing date should be specified. For most cases, this can be between four and 10 weeks, though it varies from state to state. If a party has breached such a contract, this may be enough cause for a dispute.

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  • Eviction: After being evicted or threatened with eviction, some tenants may feel that they’ve been wronged by the landlord or vice versa. If the dispute escalates to a court setting, the case will be heard within 20 days (on average) after a request for a trial is filed.

After recognizing the real estate dispute, involved parties have options for settling the issues at hand. The method of resolution chosen will be based on the circumstances and it should be based on the individual case. The different types of resolution include:
 

  • Negotiation is the direct bargaining between two involved parties. This is used as an attempt to resolve a dispute without involving any third parties. An example of this would be if a buyer found damage to the property that was incurred by the owner after moving out. A real estate broker or agent may offer to fix the damage out of their own pocket to avoid getting the seller involved.

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  • Mediation requires a neutral third-party to help both parties come to a mutual agreement. A mediator does not make a final decision, but instead helps others make a decision together.

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  • Arbitration comes in handy when neither party can come to an agreement. This means a third-party will come in to hear both sides of the case and then make a decision on their own. In a binding arbitration agreement, the final decision must be followed and enforced.

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    While educating yourself on the basics of real estate disputes and settlements is a great first step in solving an issue, seeking the consultation of a real estate lawyer is the best way to make an informed decision about an avenue of resolution to pursue.

    3 Possible Ways To Stop the Foreclosure Process on Your Home

    Foreclosure

    foreclosure processIf you’re facing a possible foreclosure on your home, you’re probably very stressed out and worried about a lot of complicated problems — from the daily tasks like getting dinner on the table, to the long-term possibilities of not having a home anymore. Your best option is to contact a real estate attorney with experience handling the foreclosure process. In the meantime, however, here are a few possible ways that you may be able to stop the foreclosure process on your home:

    • Bankruptcy: Filing for bankruptcy is a pretty drastic measure to take if you’re faced with foreclosure, but it’s sometimes the best option if you’re dealing with a lot of debt to multiple lenders. It will hurt your overall credit score for quite a while but you’ll likely receive an automatic stay on your home until the court can decide how to proceed with your case.

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    • Loan Modifications: In the state of California there’s something called a Homeowner Bill of Rights, and this means that loan servicers must either grant or deny a first-lien loss mitigation application before the foreclosure process begins. This prohibits a practice called dual tracking, which is when the lender proceeds with a foreclosure even as a loss mitigation application is pending. This isn’t a long-term fix, but it can give you some time to make a plan while still living under your own roof.

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    • File a Lawsuit: If your lender isn’t processing the foreclosure while abiding by all state and federal regulations, you may be able to file a lawsuit to stop the foreclosure of your home. In this case, you’ll need to prove that the foreclosure is not valid and therefore shouldn’t take place because the lender is at fault. The specific reasons might include the lender’s violation of the Homeowner Bill of Rights, the lender neglecting to follow all steps in the foreclosure process, or the lender making a grievous error which has affected you.

    It’s very important to understand that, if you’re facing a possible foreclosure, you don’t have to face it alone. It’s estimated that around one in every 200 homes is foreclosed upon (and this was even cut in half to one in every 96 homes back in 2013). Considering that the average Californian home costs around $393,000, you’re dealing with some pretty heavy financial stuff — and turning to a real estate lawyer for help is always a good idea.

    Boundary Disputes 101: What You Need To Know

    Real Estate Laws, Residential

    boundary disputeBoundary disputes are some of the most common problems in real estate law today, and if you’ve encountered a boundary dispute with your neighbor, it’s important to realize that you’re definitely not alone! The best way to approach any boundary dispute is to contact a real estate attorney and discuss the problem at hand, along with possible solutions.

    With that in mind, here’s a quick guide about what you should expect during a boundary dispute with your neighbor:

    • Most homebuyers (around 77%) have inspections done on a home before purchasing it in order to identify any necessary repairs — and also to clarify things like boundaries between properties. If you’ve encountered a boundary dispute after purchasing a new home, the problem might really be as simple as a misunderstanding or miscommunication of where one property ends and another begins. It’s important to make sure that you have records of any inspections done prior to the dispute.

    • Many homeowners turn to real estate lawyers who also serve as negotiators/mediators and will work out a solution without taking the case to court (which can be very expensive and time-consuming). You may also consider calling a land surveyor to make an unbiased report on the disputed boundary line.

    • There are few more drastic ways to approach the problem as well, but it’s important to understand that these may not end well unless you have a strong case. You can sue your neighbor for trespassing on your property, for example, but you might end up living next to your enemy after the whole process is over (and no one would be happy in that situation).

    • It’s common for two neighbors to get along well until the issue of property improvements is at stake. Similar to California’s Statute of Frauds regarding three types of contracts, you’ll need to receive official approval (usually in the form of a paper permit) to make certain improvements to your property before beginning construction. Without the prior approval, your neighbors will likely be able to take legal action against you if they decide they aren’t pleased with your new home improvement project (and vice versa).

    All in all, you’ll want to make sure that you consider your options before taking a boundary dispute to court. Many real estate lawyers can negotiate a settlement for these disputes which please both parties involved. It’s estimated that around 95% of cases can be handled outside of the courtroom, and a good real estate law firm will be able to help you navigate the process — even if it ends up involving court.

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