Quick Look: How to Settle a Real Estate Dispute

While 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.

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.

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.

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.

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.

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.

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