Home Selling in 02368>Question Details

Tb1965, Home Seller in 02368

My contract requires mediation - is there a way to skip this? Someone told me if I rejected every mediator it would recommended to go to small claims

Asked by Tb1965, 02368 Thu Mar 31, 2011

After inspection deadline the buyer terminated the contract based on inspection. I want the earnest money; she thinks she is entitled

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7
Please check the dates; this problem was SOLVED two years ago!
0 votes Thank Flag Link Sun Sep 1, 2013
TB, you really should be speaking to the broker for which your agent works. Are they the ones holding the escrow? In addition your R.E. attorney can advise you on if the buyer did indeed breach or just ( unfortunately ) utilize a valid clause in your contract.
0 votes Thank Flag Link Sun Sep 1, 2013
Ron,

Not after a deadline. I was the seller and did have an AGENT! I did sign the clause and did try to mediate the buyer a REALTOR refused as she knew if she waited me out she'd get her money back as the contracts say if there is no resolution in 120 days the money goes back to the buyer? Regardless if there is a dispute? that's BS. . I was forced to continue to pursue. the contracts are totally written for buyers with sufficient out clauses and ways for them to get recover earnest money while the sellers bend over backwards outlay money to make cosmetic repairs to make them happy and then they buyer can walk away? I don't think so. the contract was clear on when the buyer can revoke based on inspection by day X and she tried to cancel 4 days later - too bad! I just hate it had to be such a huge pursuit for me the seller.
0 votes Thank Flag Link Sun Aug 21, 2011
It really sounds like you are acting without an Agent:
You signed the Mediation clause, (no, it is part of the Contract, you can't skip it).
She terminated because of the INSPECTION CONTINGENCY, she can.

You need to find another Buyer.
0 votes Thank Flag Link Sun Aug 21, 2011
well I ended up taking her to small claims as she refused mediation and one. I encourage home sellers to understand the contract prior to selling your home. Your rights are limited and if I did not continue to pursue the buyer the money by default would have gone back to her. colorado real estate law needs to be improved.
0 votes Thank Flag Link Sun Aug 21, 2011
Tb,

In situations of this nature there is usually much more to the story than is being presented. Most contracts will spell out the steps in resolving conflicts over escrow money and spell out the necessary steps to resolve the issue.

It's unclear why small claims court would be preferred over mediation or arbitration? Since there is a process in place it may be beneficial to follow it as opposed to creating a whole new path.

Good luck,

Bill
0 votes Thank Flag Link Fri Apr 1, 2011
You should read the purchase agreement. There should be language in the purchase agreement that spells out what happens to the earnest money should the buyer not be able to complete the transaction.

I'm not an attorney but my pure guess is as the transaction wasn't completed, the arbitration agreement may not be valid. But it would depend on the verbiage of the arbitration agreement.

What advice has your agent given you in this situation? And have you talked to an attorney?
0 votes Thank Flag Link Thu Mar 31, 2011
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