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.
Many 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.