Underestimating the challenges surrounding real estate transactions could leave buyers and sellers alike in compromising situations in Towson.

Real estate transactions can be complex, as buyers or sellers might struggle with dense language in contracts, confusing contingencies, and other issues. For example, if a buyer walks away from a sale without a valid reason in Towson, they might lose their earnest money deposit. Because of the complexities involved in transactions and the importance of protecting your interests, our lawyers can write and review your contract to ensure your needs are met. If a dispute arises, we can help you navigate the matter through mediation or arbitration if your real estate contract requires a specific alternative dispute resolution.

Call our Towson, MD real estate lawyers at (410) 305-9287 to get help with your case from the Heyman Law Firm.

Complexities of Real Estate Transactions in Towson, MD

Purchasing or selling property is a very complicated process, and it is important that you have someone in your corner who appreciates the complexity of your situation and can operate with your interests in mind.

For example, real estate contracts are often riddled with contingencies and conditions one party has to meet for the sale to proceed. When writing and reviewing these contracts, our real estate attorneys can ensure sellers make promises they can keep, or buyers identify changes they want sellers to make.

The buyer can commence inspections once a seller accepts an offer and a building is under contract. This part of a purchasing contract is designed to protect the buyer, giving them a valid excuse to walk away from a transaction without losing money. Getting all necessary inspections done during this time is of the utmost importance.

Title issues could make a real estate transaction even more complex, especially if a seller has liens against the property they are trying to sell. Unraveling these issues before purchasing a property will be crucial to protecting your interests and funds as a buyer in Towson.

Risks of Letting Real Estate Transactions Fall Through in Towson, MD

Real estate transactions are also emotionally complex. For example, the seller might have a change of heart or the buyer might decide they no longer want the property. Even when real estate transactions fall through for seemingly valid reasons, there are risks involved in allowing this to happen.

If a real estate transaction falls through, the seller could lose potential revenue from the sale. Furthermore, either party might have contractual obligations they still need to complete, even if they no longer want to participate in the transaction.

For example, if a buyer backs out of a transaction without a valid reason stipulated as a contingency in the real estate contract, they might lose their earnest money deposit.

Comparatively, if the seller backs out of a transaction without a valid reason, the buyer can get their earnest money back and possibly sue the seller for a breach of contract.

Generally speaking, it benefits buyers and sellers to attempt to resolve real estate disputes as allowing transactions to fall through entirely could result in problems for everyone involved.

Getting Earnest Money Back Following a Real Estate Dispute in Townson, MD

If you gave a seller an earnest money deposit after making an offer on a property and a dispute arose, stopping the sale, you may be able to get that earnest money back in Townson.

The good faith deposit you give a seller in Townson will be put into an escrow account until the sale is finalized. During the escrow period, you should get all necessary inspections to alert you to any problems that could alter your decision to purchase the property.

To get earnest money back, you must show that the seller violated a contingency in the purchasing agreement. For example, if an inspection found significant damage to the building’s foundation, that would likely be a fair reason to change your mind about purchasing a property. In such situations, buyers can typically get earnest money back in Townson. However, if the seller refuses to return the earnest money, our lawyers can help you take them to court.

Writing Real Estate Contracts in Anticipation of Disputes in Towson, MD

Real estate transactions might be unpredictable, and it is important to approach them with solely your best interests in mind. Our attorneys can do just that when writing and reviewing real estate contracts for buyers or sellers in Towson.

Whether you are the buyer or the seller in the transaction, it is crucial that you include contingencies that could benefit you in the event of a dispute. For example, real estate contracts sometimes require parties to enter into arbitration if a dispute arises. During arbitration, a third-party arbitrator will hear the case and make a binding decision. Agreeing to arbitration in a real estate contract before a problem actually arises could leave you in a difficult situation if the arbitrator sides against you.

So, depending on your unique situation, our real estate lawyers might suggest including or excluding an arbitration contingency in your contract in Towson.

Not engaging in arbitration does not mean you must litigate your case in court, as there may be an option for mediation. Mediation is less formal than arbitration but also uses an unbiased third party to facilitate conversations and negotiations.

Other common contingencies in real estate contracts include financing, appraisal, inspection, and title contingencies. For example, suppose you make an offer on a property and the buyer accepts it. Then, when you get the building appraised, the appraisal is far lower than the offer you made. If you included an appraisal contingency in the contract, you might be able to get your earnest money back and walk away from the sale without breaching the contract.

Call Our Real Estate Attorneys in Towson, MD Today

Call the Heyman Law Firm at (410) 305-9287 for help with your case from our real estate lawyers.