How can you resolve disputes between the buyer and seller's attorney during a closing?

Closing a real estate deal can be a stressful and complex process, especially when disputes arise between the buyer and seller's attorneys. These disputes can delay or derail the transaction, costing both parties time and money. How can you resolve these conflicts and ensure a smooth closing? Here are some tips and strategies to help you.

1 Understand the source of the dispute

The first step to resolving a dispute is to identify the root cause and the interests of each party. Some common sources of dispute include title issues, inspection findings, contract terms, financing contingencies, and closing costs. You should communicate clearly and respectfully with the other attorney and try to understand their perspective and concerns. You should also review the contract and any relevant documents to verify the facts and obligations of each party.

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Anna J. Niemann

Committed dispute resolution services. #AnnaMediates
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This is key to resolution, and requires that the lawyers involved be reminded to focus on the primary interests and needs of their clients, and not on winning or losing. Both sides will have their own priorities, whether it be cost or closing date or completing another transaction as a condition precedent. Understanding those priorities and employing them to craft an agreement that honors each side is essential to closing the deal.

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2 Negotiate in good faith

Once you have identified the source of the dispute, you should try to negotiate a mutually acceptable solution with the other attorney. You should approach the negotiation in good faith, meaning that you are willing to cooperate and compromise, rather than being adversarial or unreasonable. You should also focus on the interests and goals of each party, rather than their positions or demands. For example, if the dispute is about a repair request, you could explore different options such as reducing the price, sharing the cost, or extending the closing date.

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Paul Durante

Vice President Residential Lending- NMLS 165795 | Strategic Sales Executive | Expert in Consultative Sales | Financial Services | Private Banking | High Net Worth Client Management
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To resolve disputes between buyer and seller attorneys during a closing: 1. Encourage open communication. 2. Mediation by a neutral party. 3. Review the contract terms. 4. Seek legal consultation if necessary. 5. Use an escrow account for funds. 6. Promote negotiation and compromise. 7. Draft contract amendments. 8. Involve clients if needed. 9. Legal recourse as a last option. 10. Involve the title company for guidance. 11. Request time extensions if delays occur. 12. Document all discussions and agreements. 13. Maintain professionalism and calm. 14. Establish an escalation protocol within your organization. These steps facilitate dispute resolution for a successful closing.

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3 Use a mediator or arbitrator

If you cannot reach an agreement through direct negotiation, you may consider using a third-party mediator or arbitrator to help you resolve the dispute. A mediator is a neutral person who facilitates the communication and negotiation between the parties, but does not impose a decision. An arbitrator is a neutral person who hears the arguments and evidence from both parties, and then makes a binding or non-binding decision. You should consult with your client and the contract before choosing either option, as they may have different costs, benefits, and implications.

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4 Escalate to a higher authority

Another option to resolve a dispute is to escalate it to a higher authority, such as a supervisor, a broker, or a court. This option may be necessary if the other attorney is unresponsive, unethical, or violates the contract. However, this option may also be costly, time-consuming, and risky, as you may lose control over the outcome and damage the relationship with the other party. Therefore, you should only use this option as a last resort, and after exhausting all other alternatives.

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5 Document everything

Regardless of how you resolve a dispute, you should always document everything in writing. This includes any communications, agreements, amendments, waivers, releases, or notices that are relevant to the dispute. You should also keep copies of all the documents and evidence that support your position and claims. Documenting everything will help you protect your rights and interests, prevent future disputes, and comply with the contract and the law.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you resolve disputes between the buyer and seller's attorney during a closing?

1

2

3

4

5

6

1 Understand the source of the dispute

2 Negotiate in good faith

3 Use a mediator or arbitrator

4 Escalate to a higher authority

5 Document everything

6 Here’s what else to consider

Real Estate

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How can you resolve disputes between the buyer and seller's attorney during a closing?

1

2

3

4

5

6

1 Understand the source of the dispute

2 Negotiate in good faith

3 Use a mediator or arbitrator

4 Escalate to a higher authority

5 Document everything

6 Here’s what else to consider

Real Estate

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