While purchasing a home in California can be an exciting experience for some, oftentimes disputes in real estate transactions do occur both during and after closing. There are steps both buyers and sellers can take to attempt to avoid purchase contract disputes.
What Saftey Measures a Buyer Can Take Prior to a Real Estate Purchase?
A buyer can protect themselves by taking additional measures prior to the real estate purchase, including:
- Inspect the property;
- Hire an appraiser to verify the value of the property;
- Hire an inspector to inspect the home;
- Review the entire real estate contract carefully;
- Ask for additional information with repsect to the condition of the roof, plumbing, etc;
- Hire a property surveyor to survey the property;
- Interview neighbors to obtain information about the neighborhood
What is a Purchase Dispute?
To begin, let’s get familiar with disputes. A dispute is another word for disagreement. Questioning a lead or if a claim is true is a dispute. Disputes take place between two opposing parties regarding legal issues due to the fact that an agreement has not been concluded. Now that we know more about disputes, we can further our knowledge into an understanding of purchase and sale disputes.
What Are Contingencies in Real Estate Transactions?
Most real estate purchase and sale contracts have conditions, which the buyer must remove in writing and notify the escrow holder before the transaction becomes final. Inspection and/or financing contingencies are examples of contingencies. This process is known as deleting or waiving contingencies.
Breach of Contract in a Real Estate Transaction
A breach of contract takes place when the seller cancels the deal after the buyer has waived all contingencies. For example, a seller cannot back out of a property sale just because they don’t want to sell the property or because another offer to acquire the property appears to be greater than the original offer. In these cases, the buyer can attempt to enforce the purchase agreement.
If a buyer refuses to complete a transaction without reason, the seller can seek damages through mediation, arbitration, or via lawsuit. Damages are not always straightforward, and the seller has a responsibility to try to reduce losses by selling the property to another party.
Resolving a Dispute Amongst Buyer and Seller
Each situation between parties may be different. Attorney’s normally deal with dispute cases. It is in the attorney’s best interest for the legal process of litigation to go smoothly.
How Does Dispute Resolution System Work?
Dispute Resolution System (DRS) is used to solve disputes, hence in the name. DRS uses few methods without the interference of a third party. Steps to prevent and resolve such disputes come as follows:
- Negotiate- Configure a solution amongst strictly disputing parties and parties willing to settle for agreement, all without third-party involvement.
- Mediate- Third-party configures reasonable settlement with a decision to satisfy both parties directly included.
- Arbitrate- The dispute is resolved without showing up to court. This is a mutual agreement.
It will benefit both the buyer and seller to be able to mediate and arbitrate problems prior to a real estate transaction with a purchase contract agreement. By preventing future issues during the transaction process, transactions will be more organized and completed quickly.
Am I Making The Right Decision?
During a real estate transaction, things may get difficult to navigate during the process. Considering hiring an attorney will put you at ease. By doing so, navigating through documents, resolving disputes, and making intelligent decisions will work in your favor. The benefits of the transaction results will follow through in a blink of an eye.
Los Angeles Real Estate Attorney
If you or someone you know is in a real estate purchase or sale dispute we invite you to contact our office at (310) 943-1171 for a free consultation with a Los Angeles real estate attorney.