Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale

Texas Real Estate Mediation - Earnest Money Dispute

Mediation is a mandatory clause in the Texas Real Estate Contracts that are promulgated by the state of Texas. This means, a judge doesn't want to see a real estate transaction in his courtroom unless the parties have tried Real Estate Mediation Services first.

texas real estate mediation services - donna harrisMany issues within a real estate transaction can be mediated. For example, earnest money disputes. Earnest money is typically given to the title company to hold upon execution of the contract. The amount of earnest money is negotiable. It could be $500 or it could be $10,000 or more. It mainly depends on the price point. In my immediate market, approximately 1% of the contract price is becoming more of the norm.

Typical scenario: Buyer gives earnest money. Buyer has many ways out of the contract. Buyer takes one of the ways out, and claims earnest money. Seller moves on.

Mediation scenario: Buyer gives earnest money. Buyer has many ways out of the contract but allows all dates to expire. Buyer decides to terminate the contract outside any contract dates of contingencies. Buyer claims earnest money. Seller wants to claim earnest money. How do these parties move on when they both want the same thing?

Their agents cannot interpret the contract, and more brokers will say "lawyer up".  My Texas Real Estate Mediation Services can help both parties figure out a mutually agreeable way to move forward.  Contact me today for your free 10 minute consultation to see if Mediation is right for you.

Check out my website to see other examples of Texas Real Estate Mediation Services scenarios.

 

Donna Harris

TexasRealEstateMediationServices.com

donna@texasrealestatemediationservices.com

Comment balloon 2 commentsDonna Harris • July 14 2017 07:08PM
Texas Real Estate Mediation - Earnest Money Dispute
share
Mediation is a mandatory clause in the Texas Real Estate Contracts that are promulgated by the state of Texas. This means, a judge doesn't want to see a real estate transaction in his courtroom unless the parties have tried Real Estate Mediation… more
Texas Real Estate Mediation Services
share
With my long tenure in real estate, wearing many hats, I finally decided to take my Mediation and Ombudsman experience out on my own and created Texas Real Estate Mediation Services. The Texas contracts have a mandatory Mediation clause in every… more
Nominated for the Texas REALTOR Leadership Program
share
I have been a REALTOR for nearly 17 years. I've worn many hats within the Realtor community including Ombudsman, Mediator, and property tax Arbitrator. I also sit on the Professional Standards Committee for the Texas Assocaition of Realtors. After… more
Hello again…
share
It's been two years since I blogged. With Facebook and Social Media, I had decided blogging wasn't really worth my time anymore. Over the past two years, I've noticed less and less people contacting me to buy and sell because they weren't seeing.. more
Lake Pointe - Bee Cave Austin TX - Market Activity
share
Lake Pointe in Bee Cave Austin TX is one of my favorite neighborhoods. It's located in the highly regarded Lake Travis school district (LTISD) has an elementary school right in the neighborhood so kids can easily walk to and from school, and has a… more
PT50- Get Real with Realtors in the Business
share
Yesterday, I had the honor of being part of a Realtor panel for the Platinum Top 5 group at the Austin Board of Realtors. There were four different panels, about varying parts of the business. I was on the panel about Agent Courtesy… more
Senna Hills- 2014 YTD Market Report thru Oct 1
share
Senna Hills is a great community that's just West of Austin and feeds into the fabulous school district called Eanes ISD. For several years, I gave the Senna Hill's homeowners a hard time for over-pricing their properties. They always had this… more
5008 McIntyre Circle - Austin TX 78734 - For Sale - Travis Landing
share
I have a great new listing in Travis Landing, overlooking the main water basin of Lake Travis. It's the highest property in the area, and the views are worth $5, 000, 000 on their own, and you're in luck because the seller is offering this house for a… more
Inspections on a House for Sale are not about Pass & Fail
share
There is no such thing as a "Failed" inspection on a house. Nor is there an inspection that is considered a "Pass". Inspections are done for buyers who want to know more information about the house they are thinking about… more
Texas is Not Experiencing a Bubble- Gradual Appreciation
share
Is Texas going through a Real Estate Bubble? My personal opinion is no, we are not. Take a look at the below graph. What you see is the real estate pricing of property starting in 2007, when the experts say the recession "hit… more
Awesome Bathroom Picture in the MLS
share
This is an awesome bathroom picture. You know why? Despite the toothpaste being on the counter, and the bottom drawer being open, and the hairspray being out of place… oh and the agent standing in the middle of the mirror holding his… more
Mandatory Energy Audits - City of Austin TX
share
Back in June 2009, Austin TX implemented Mandatory Energy Audits for every sale if you fit the following criteria: Live in the City of Austin Use Austin Energy The house is more than 10 years old For the most part, this… more
Mediator for the Texas Association of Realtors
share
June of 2014 was a big change to our Texas residential real estate contracts. Mediation used to be an option that buyers and sellers could choose, but now it's mandatory. It used to be that if a suit went to court, the judge then had the option of… more
Lake Pointe Market Report - A Calming Summer Market
share
The Austin market went a little "funny" on us this Summer. Traditionally, Summer is a very busy time of year as people relocate to new places and they want to get settled in before the next school year starts. However, this Summer… more
12324 Paloma Blanca - Del Valle TX 78617 - for sale $145, 000
share
This is a cute little house in Del Valle TX, just SouthEast of Downtown Austin TX. Welcome home to the inviting front porch where you can meet and great your neighbors and just relax with a glass of iced tea or cup of coffee. … more
Donna Harris- Trained Texas Mediator
share
As of June 1, 2014, the Real Estate Residential sales contract now has mandatory mediation. Prior to June, Mediation was always an option for buyers and sellers. With so many cases in the courts, the Broker/Lawyer committee who creates the Texas… more
Contracts are Between Buyer and Seller. Don't Negotiate my Commission!
share
In a real estate transaction, the contract is between the buyer and the seller. The buyer's agent and seller's agent act as representatives for their clients. The agents help facilitate the transaction so both parties make it to closing. The… more
Does the Listing Agent Need to Disclose if There are Multiple Offers?
share
If there are multiple offers on a property, does the listing agent have to disclose this information? The Austin market, in many ways, is a very hot market. There are some people who would disagree, but those people are not currently in the… more
Ringling Brothers and Barnum & Bailey Circus - Frank Erwin Center
share
Ringling Brothers and Barnum & Bailey's Greatest Show on Earth came to Austin's Frank Erwin Center a few days ago. It was a great show! It was very different than the last two years, and that's good and bad. It's Good because it gets… more
Lakeway Pool - Last Day of Summer
share
Yesterday was the last day of Summer so we visited the Lakeway Pool for the last time this year. They don't stay open until Labor Day like some other areas. Yesterday was the last day for the kiddos. Alyssa waited all Summer to be tall enough… more