To avoid going to court for a buyer-seller dispute, those dealing with complicated real estate issues can seek help from our lawyers in Maryland.

Buyers and sellers alike typically want to resolve real estate disputes without going to court in Maryland and may do so through informal negotiations, mediation, or arbitration. When real estate contracts include arbitration clauses, disputes must be settled through arbitration, and the results are binding. Our lawyers can help you resolve various buyer-seller disputes without going to court, including disputes about the disclosure of latent defects and who gets the earnest money if a sale falls through. To avoid common buyer-seller disputes, our lawyers can write helpful contingencies into the contract from the onset of the transaction, protecting you from the get-go.

For a free case review from the Heyman Law Firm’s Maryland real estate transactions and disputes lawyers, call us today at (410) 305-9287.

How to Resolve Buyer-Seller Disputes without Going to Court in Maryland

Going to court over real estate disputes between buyers and sellers is often unnecessary in Maryland. Our lawyers can help you resolve disputes through mediation or another alternative dispute resolution method instead of going straight to court.

Resolving Disputes Through Negotiations and Mediation

Mediation is an alternative dispute resolution method involving an unbiased third party who facilitates conversations between buyers, sellers, and their lawyers. It is much less formal than trials, and the outcomes are only binding when both parties sign an agreement. The mediator cannot make a decision and impose it on the buyer and seller involved.

Mediation gives both parties an opportunity to resolve the issue at hand in a neutral setting. Before mediation, our real estate transactions and disputes lawyers may be able to settle the problem by negotiating with the other party and their counsel. When both parties want to avoid further legal proceedings, informal negotiations may suffice.

Resolving Disputes Through Arbitration

Some real estate contracts include arbitration clauses, requiring both parties to resolve disputes out of court with an arbitrator, erasing the option for mediation. Arbitration is more akin to a trial than mediation but is still not as formal as going to court.

With arbitration, there is a third-party arbitrator who listens to both parties’ evidence and arguments and then makes a decision. This decision is binding, meaning whatever the arbitrator decides typically goes. If the real estate contract does not have an arbitration clause, skipping over mediation in favor of arbitration may not be the best course. If mediation is unsuccessful, you could then proceed with arbitration or resolve the matter in court.

Types of Buyer-Seller Disputes We Can Resolve without Going to Court in Maryland

Our lawyers can help you resolve various buyer-seller disputes without going to court, including issues for failure to disclose latent defects and disagreements about what happens to the escrow funds if a transaction fails.

Failure to Disclose Latent Defects

After entering escrow, buyers get the necessary inspections, which could unearth undisclosed defects. When this happens, there is an issue with the existing purchasing contract, and buyers may want more seller concessions or a reduction in purchasing price to cover costs associated with the undisclosed defect.

Failure to disclose is a serious issue, one most sellers cannot move on from easily. Md. Code, Real Prop. Art., § 10-702 governs the disclosure of latent defects, and showing the seller you are aware of these laws may be enough to convince them to resolve the matter out of court, possibly without lengthy negotiations or mediation. Latent defects refer to defects buyers could not reasonably have discovered through careful visual inspection and would pose a direct danger to their health and safety.

Deposit Disagreements

When real estate transactions do not go through, there may be disagreements about what happens with the earnest money. If the buyer backs out of the sale without a valid reason, the seller typically gets to keep the earnest money. Whichever side of the transaction you are on, our lawyers can review the real estate contract carefully to determine your right to escrow funds.

If you are the buyer and want your earnest money back, you might have a fair reason to walk away from the sale, especially if the seller breached the real estate contract in any way. For example, if the inspection showed structural issues, you should be able to get your earnest money back. Mediation can typically settle these disputes quickly, especially when you allow our lawyers to help write your real estate contract from the get-go to ensure you are protected in case the sale falls through.

Avoiding Common Buyer-Seller Disputes and Going to Court in Maryland

Writing specific contingencies into contracts can protect buyers and sellers alike, which is why our lawyers will include appropriate stipulations in your contract to safeguard you in case issues arise during the transaction.

Contingencies can justify your reasons for walking away from the sale, protecting you in case a dispute arises. For example, it is commonplace to include inspection contingencies, which let buyers change their minds if an inspection turns up issues like considerable structural damage, mold, or other health or safety concerns. Because the contingency exists, the buyer should also get their earnest money back. If the seller refuses to return the earnest money, our lawyers can show that the real estate contract stipulates the return of earnest money based on the results of the inspection, resolving the matter there.

By anticipating common buyer-seller disputes in Maryland and including contingencies to address them from the get-go, our lawyers can help you avoid disputes and court altogether. If a separate problem arises, we can help you address it quickly through negotiations or mediation.

Call Our Lawyers in Maryland to Discuss Your Case Today

For a free case assessment from the Heyman Law Firm’s Maryland real estate transactions and disputes lawyers, call (410) 305-9287.