There are several factors that need to be considered when purchasing or selling a piece of property. Among the elements that a business or individual needs to ponder are the asking price, how much they want to accept as a down payment and if they are hiring the correct real estate broker. However, many people do not consider what may happen when they have a dispute with their real estate broker.
Why Disputes Arise
There are a number of reasons why a dispute may arise with a real estate broker. First, the brokers who are involved in the transaction may disagree on their individual transaction commission. In addition, the seller may feel that they did not receive a fair amount for the sale of the property. Conversely, the purchaser may believe that they have to make a down payment that is higher than what they were expecting or were advised.
Dispute Process
If a company or person has a dispute that they need to resolve with their real estate broker, there are a number of ways to resolve the issue. First, the parties can simply discuss the issues and attempt to resolve their differences voluntarily. However, when the individuals cannot fix the problem among themselves, they can attempt to rectify the situation through the following means:
Mediation
In mediation, all parties meet with a neutral third party with the hopes of resolving any issues. Mediation is non-binding. In addition, Mediation also allows all parties to understand their rights and obligations and any associated costs. Real estate brokers, however, are not always required to participate in mediation.
Arbitration
Arbitration is a second way of trying to resolve a dispute. Arbitration is where all parties meet with a neutral arbitrator. All parties can present facts and evidence. In addition, all groups may have an attorney representing them. When the arbitrator renders a decision, it is usually binding (regardless of the verdict).
Litigation
Filing a lawsuit is the last option when all sides are unable to resolve their differences. A lawsuit can be very time intensive and costly. At the same time, the individuals involved will need to provide all applicable evidence and possibly give a deposition in regards to the issues.
Conclusion
When a party feels that they may have an issue with a real estate broker for any reason, it can be useful to speak with a business or real estate attorney. A lawyer can explain how to deal with the real estate broker and the best way to resolve any problems. In addition, the attorney can discuss what the individual or business may be liable for in a dispute as well as what they may potentially gain from resolving the issues.