Subscribe to Answers
I'm in the middle of one right now over commission owed me. Won't comment on it until after I'm done.
Debe Maxwell, CRS
I had a buyer who had gotten through the entire Due Diligence and the sellers decided that they didn't want to sell! My clients had spent a good deal of money in the way of a deposit, appraisal, inspections, Title/attorney and survey fees.
I had an attorney write a letter to the sellers and they reimbursed my buyers for all expenses, including the attorney fee for his intervention.
As it turned out, the buyers wound up with a better home and are happy as two peas in a pod in home #2!!
St. George, UT
Haven't had one yet and don't plan on it!
If a dispute arises, I would encourage the parties to settle it. If they cannot come to an agreement immediately, then seek legal counsel from an Attorney.
Property line. Arbitration
People trying to renegotiate hours before closing. Deal fell through!
You should let attorneys handle it.
Seana, mine never get to the point where they could really be called a "dispute". Negotiating minor differences is a crucial skill - avoid disputes in the first place.
Seana it wasn't my transaction but rather another agent I knew. The agent put a deal into escrow and thought his investor was buying one house when in fact they closed on another home down the street. Totally wrong address, legal descriptiong etc. The house they thought they bought was totally remodeled. The one they actually bought needed about 30K of work. Talk about a screw up.
Seana Johnson A lender decided not to fund my buyer at the closing table after underwriting was approved. This lender had us come to the closing table on three different occasions. There were no issues with my well-qualified buyer. My buyer got very frustrated and decided to walk.
The worst cases are those that fail to reach settlement.
I fortunately have not had a contract dispute to deal with but if I did my broker would be involved as would, potentially, mediation and arbitration, depending on the issue. I did have a dispute around non-disclosure by a seller that was resolved between buyer, seller and listing agent
I really don't dwell on the negatives, it's just another brick in the wall.
Since I am a builder's rep so it would go to our legal department, I personally have not had this experience!
Good luck with your studies
Personal property versus a fixture! Each party has a different opinion. If you think it is going to be a problem put it in writing in the contract!
Probably best asked of miscreant Buyer Agents for some of our Short Sale listings!
Have not had any such disputes.
Not going there, will be focusing on the positive.
Contract delays that don't close on time cause problems especially if interest rates are rising. If the seller is reason for the delay the buyer may ask that they pay the interest rate increase penalty or lock extension.
There was a typo instead of $395,000 it read $95,000 and the buyer insisted to buy at 95k ad not the 395k price. It went to court where the judge ruled against the buyer and tolld her to be ashamed of herself for trying to take advanatge where all other communication said 395k.
Arbitration which we won, but after many sleepness nights and lots of weight loss. Avoid this at all cost!
This year my worst expedience with real estate transaction contract dispute centered around the heirs coming to agreement on the value of the pots, pans and table settings. One came up with $42,000 while the other was willing to pay to have the place cleaned out.
They did the American thing and each called in their attorney's. Buyer bailed out at the first mention of attorney.
The court appointed a trustee assigned the sale to another real estate professional.
Each paid $60,000 in legal fees and turned simple into a real mess.
My investment added up to a total loss.
When there is an impasse, its serious and things breakdown. The cure? Give in some and the other will too. Of course the best way is preventative