Have The Contract State That Disputes Should Be Settled With Mediation | Over the years I’ve developed an amazing agreement and it’s what we call our standard purchase and sale agreement.
This standard purchase and sale agreement is amazing because it takes care of profits. It’s got profit centers in there. It negotiates a lot of your transaction for you without each point having to be negotiated by you. And it’s also got a lot of protection in there too.
The purchase and sale agreement, it’s three pages long and it actually goes through, one of the things it does is collect up all the money together on one page so you don’t have to hunt through the document to actually find out what the money looks like.
Another thing it does is it actually puts you in a position to deal with issues before they occur. We’ve got a clause in here. Number 11, it’s called “Default and Attorney’s fees”. Now, if buyer defaults on this agreement, all deposits will be retained by the seller as full settlement of any claim where upon buyer and seller will be re relieved of all obligations under this agreement.
If seller defaults under this agreement, the buyer may seek specific performance or elect to receive the return of buyer’s bonder deposits without thereby waiving any action for damages resulting from seller’s breach. If seller refuses to sell for any reason other than those outlined here in seller and buyer herewith agree to resolve this dispute through binding arbitration with all costs of such arbitration being borne by the losing party. What we’re doing is, and there’s some other words in here, but what’s important is that we’re solving a problem before it occurs.
Because if the seller refused to sell to you for any reason; you may have already spent a bunch of money on getting ready for that closing. You may have ordered a title search. You may have paid for a title binder. You may have done inspections on the property; you may have spent some money getting utilities turned on. There are things that you are faced with when you’re trying to close a transaction, you got to protect yourself. If they refuse to close, you’ve got an out, and by the way, they’re going to initial that particular clause to make sure
that they have agreed to mediation and binding arbitration.