The growing poor economic cycle for real estate, and growing consensus projections that the reduction in housing prices may last to the beginning of 2009, has resulted in a ever expediential increase for the need for Mediators and Arbitrators.
The Standard California Association of Realtors Sale and Purchase Contract for residential property calls for disputes to be first settled by Mediation, and if not resolved, then by Arbitration, usually ordered by the Superior Court, rather than wanting to hear the dispute in the form of a lawsuit.
To a much lesser degree this economic real estate slide also effects apartment transactions, and some commercial real estate transactions.
The reduction in prices in residential real estate has caused disputes to occur that did not manifest itself in a escalating price marketplace.
Some examples involve alleged non disclosure by the sellers of items that needed to be done after the closing by the buyer. These disputes range in dispute valued by Claimants of from $10,000 to 250,000.
Another dilemma caused by this current real estate market is the deposit given to purchase a home, and then for a number of reasons the buyer backs out of the transaction based upon contractual rights, or none at all, resulting in the seller not returning the deposit, and the buyer putting a hold on the disbursement of the deposit from escrow to the seller leaving the buyer and seller in a unresolved dispute.
These sale deposit disputes have ranged from $15,000 to $500,000.
The same type of dispute dilemmas are growing with Apartment transactions and to a smaller degree commercial buildings .
Non disclosure of defects can, and have been in the muti- million dollar range, and deposits in dispute from $100,000 to $500,000, or larger, as financing has become more difficult, causing a closer review of the buyers credit, and higher rates or fees charged by the lender thereby reducing the economic benefit of the cash flow available to the buyer.
In both above cases these type of disputes are growing and will ultimately be resolved either through Meditation, and or Arbitration.
Mediators and Arbitrators with years of varied experience in all fasts of real estate will benefit.
Some one else’s problem becomes an opportunity to expand ones practice.
CPR Speaks Blog California last week enacted a new law that prohibits employers from requiring job applicants, or any existing employee, to enter into pre-dispute arbitration agreements as a condition of...By CPR Institute CPR