Real estate transactions can lead to various disputes between buyers and sellers, which our lawyers can help you address in Gaithersburg.

We can prevent disputes during property transactions by writing contracts with the appropriate contingencies and stipulations. This is particularly important when purchasing large commercial properties, as some property defects may only be found during inspection. Should an issue arise during the escrow period, whether with property defects or appraisals, we may settle it via mediation or arbitration. Mediation is less formal than arbitration, which is more like a trial, with an arbitrator who acts like a judge. These alternative dispute resolution methods can resolve various disputes, including those for breaches of contract. Common real estate contract breaches include failure to pay closing costs, failure to disclose property defects, and failure to uphold seller concessions.

Call the Heyman Law Firm’s real estate transaction and disputes attorneys at (410) 305-9287 for a free case review.

Using Contingencies to Avoid Real Estate Disputes in Gaithersburg, MD

Writing strong real estate contracts with the appropriate verbiage and contingencies that provide you and your interests in the sale. How we do this may vary depending on whether you are the buyer or the seller in the transaction, and our lawyers can write contracts that help prevent certain disputes from arising.

The real estate contract is binding once signed, meaning all parties agree to the contract’s content. Because of this, ensuring that the contract itself does not have any potential holes, hidden costs, or unfair stipulations from the other party that could leave you in a difficult situation is important. Once an offer is accepted, we can identify contingencies that would benefit you and write them into the contract.

In commercial real estate, buyers might find a variety of issues with the property or unknown defects that change their opinion of the property or the agreed-upon price. Because this is a risk, particularly with large properties like apartment complexes, we can write standard inspection contingencies into the contract that provide you a viable escape route should you change your mind about purchasing the property after finding defects during the escrow period.

Handling Real Estate Transaction Disputes without Going to Court in Gaithersburg, MD

We can use alternative dispute resolution methods to settle real estate transaction issues out of court, saving buyers and sellers valuable time and resources.

When arbitration clauses are written into contracts for real estate transactions, buyers and sellers must go through arbitration to settle disputes. Should that happen, a third-party arbitrator will listen to both sides and identify the solution. The arbitrator acts like a judge, and their decision is binding. Because of this, there is a risk to arbitration and the inclusion of a clause requiring it in contracts for real estate transactions.

Mediation is another option to settle disputes out of court. There is also a third party present during mediation, the mediator. Their role is to facilitate discussions with both sides to reach an agreement and resolve the dispute. During mediation or arbitration, our real estate transaction and disputes attorneys can argue your position and cite how the other party breached the contract or other valid reasons for raising a dispute. On top of latent property defects and other issues found during inspections, buyers might have reason to leave a sale for inaccurate appraisals and title issues.

Though they are both alternative dispute resolution methods, mediation and arbitration differ, so our lawyers may use various tactics while preparing arguments in either setting. For example, in mediation, the goal is to reach a solution that both parties can agree to, so we may focus on negotiating with the other party while leveraging evidence and documents that support your side. Because arbitration is more akin to a trial, it may proceed much like it, and we can prepare you for what that may entail.

If mediation is unsuccessful, the issue might proceed to arbitration if both parties agree or an arbitration clause is written into the contract.

Common Contract Breaches During Gaithersburg, MD Real Estate Transactions

Real estate agreements are, in fact, contracts, meaning, once signed, both parties must uphold their end of the deal. Failing to do so would be a breach of contract, which could threaten whether or not the property transaction goes through.

Buyers who fail to pay closing costs by the proper deadline risk breaching contracts. Late payments for failure to secure financing or any other reason could be a breach of contract, leaving the buyer vulnerable. In such situations, sellers may be able to leave the agreement with the buyer’s earnest money.

Often, the seller, not the buyer, breaches the contract, intentionally or unintentionally. The seller has more on the line, as they likely want to sell their property. Giving yourself a viable route to leave the agreement without breaching the contract is important, as that provides you with ample protection during the sale. For example, if the property does not pass inspection, and there is an inspection contingency in the contract, we can point to that as our reason for wanting out, and you could leave without breaching the contract. You would also get your earnest money back in this situation.

Continuing with that example, suppose the seller agreed to fix the problems found during the inspection but failed to do so. That failure would also be a breach of contract, which could amount to a dispute if the seller does not agree to return your earnest money and let you leave the arrangement. To regain earnest money in such situations, we can demonstrate the other party’s failure to uphold their part of the bargain as stipulated in the contract they signed and agreed to, whether during mediation, arbitration, or court.

Call Our Gaithersburg, MD Attorneys About Your Case

Call our real estate transaction and disputes attorneys at (410) 305-9287 to discuss your case for free with the Heyman Law Firm.