Buying and selling real estate can be exciting, but it’s not uncommon for problems to arise during a transaction. It is frustrating when you think you have made a deal and it falls through, but a real estate lawyer in PA can help you make sense of it all and ensure your rights and interests are protected.
Common Issues with Real Estate Transactions
In a perfect world, every real estate transaction would go off without a hitch. Unfortunately, this is not always the case. Some common issues and disputes that may arise include:
- Failure to disclose
- Negative inspection reports
- Low appraisals
- Lending and financing issues
- Lack of negotiability
- Missed deadlines
- Poorly defined contingencies and disclosures
- Title issues
- Buyer’s remorse
These problems can affect the seller, buyer, realtor, broker, and banking or lending institutions. It is vital to understand the ins and outs of your real estate sales agreement and be aware of how to back out of a contract if a deal goes bad.
A Written Contract is a Must
It should go without saying that without a written contract, you could be left in the dust as a buyer or seller. Although verbal agreements are sometimes enforceable, it is much more difficult to hold someone accountable and protect our interests without a signed contract. To ensure the terms and contingencies in your real estate sales agreement are valid and legally enforceable, it is critical to have experienced real estate attorneys draft and review it.
Real Estate Attorneys Can Employ Effective Strategies for Resolving Disputes
A real estate transaction dispute can cause significant financial losses for buyers and sellers alike. Using a skilled attorney for contract review can help you avoid problems before they start. However, a good real estate lawyer will also know how to effectively develop negotiation strategies that help you find practical solutions. When a reasonable resolution cannot be reached, real estate litigation may be necessary.
Using Alternative Dispute Resolution (ADR) to Address Disputes
Mediation and arbitration are valuable conflict resolution methods that save you time and money by avoiding costly court battles. Mediation can be effective in resolving disputes involving residential real estate transactions, while commercial transactions may require arbitration.
There are some significant differences between these two ADR methods. In mediation, a neutral third party facilitates communication and negotiations between the parties in conflict but does not make any decisions about how a dispute should be resolved.
Arbitration can be legally binding or non-binding. After hearing all involved parties and reviewing documentation, an arbiter will issue a decision about how a dispute should be settled. In some cases, once issues are ironed out, parties may end up continuing on with their transaction.
Work with a Real Estate Attorney From the Beginning
Seasoned buyers and sellers may be overconfident and believe they can handle real estate transactions without the guidance of an attorney. Using real estate lawyer services from the get-go can help you avoid common pitfalls and if disputes do arise, your attorney will already be up to speed on the specifics of the situation.
Our real estate attorneys provide top-notch legal services you can trust. We help you understand each real estate transaction process step and protect your interests along the way.