Breach of Purchase Agreement Disputes

Breach of purchase agreement disputes occur when one party fails to fulfill their obligations as outlined in the purchase agreement for a property. This can include failing to complete the purchase on time, refusing to transfer ownership, or failing to disclose important information about the property.

Common Causes

  • Non-payment or delayed payment by the buyer.
  • Failure to meet deadlines for inspections or due diligence.
  • Discovery of undisclosed defects or issues with the property.
  • Seller refusing to vacate the property after the sale has been finalized.
  • Disagreements over the interpretation of contract terms or conditions.

Property Inspection Disputes

Property inspection disputes arise when there are disagreements between the buyer and seller regarding the results of property inspections. These disputes often revolve around the condition of the property and the extent of any necessary repairs or renovations.

Common Causes

  • Discrepancies between the condition of the property as described by the seller and its actual condition.
  • Disagreements over the severity of issues identified during inspections.
  • Failure to disclose known defects or problems with the property.
  • Disputes over who is responsible for covering the cost of repairs or addressing issues identified during inspections.

Earnest Money Disputes

Earnest money disputes arise when there is a disagreement over the handling or return of earnest money in a property transaction. Earnest money is a deposit made by the buyer to demonstrate their serious intention to purchase the property.

Common Causes

  • Buyer backing out of the purchase for reasons not covered by contingencies in the purchase agreement.
  • Seller refusing to return earnest money despite the buyer being within their rights to cancel the contract.
  • Disputes over the interpretation of contingencies related to the release or forfeiture of earnest money.
  • Failure to follow proper procedures for handling earnest money in accordance with state or local laws.


What is property purchase mediation?

Property purchase mediation is a process in which a neutral third party helps buyers and sellers resolve disputes related to the purchase of a property.

How does property purchase mediation work?

  • The mediator facilitates communication between the parties to identify the underlying issues causing the dispute.
  • The mediator helps the parties explore possible solutions and negotiate a resolution that is acceptable to both sides.
  • If an agreement is reached, the terms are documented in writing and signed by both parties.

When should I consider property purchase mediation?

  • When negotiations between the buyer and seller have reached an impasse.
  • When there are disputes over the terms of the purchase agreement or the condition of the property.
  • When both parties are willing to work towards a mutually satisfactory resolution without resorting to litigation.

How long does property purchase mediation take?

The duration of property purchase mediation can vary depending on the complexity of the dispute and the willingness of the parties to cooperate. Some mediations can be resolved in a single session, while others may require multiple sessions over several weeks or months.

Is property purchase mediation legally binding?

Property purchase mediation results in a legally binding agreement if both parties voluntarily agree to the terms. Once the agreement is signed, it becomes enforceable in court.

What are the benefits of property purchase mediation?

  • Faster resolution compared to litigation.
  • Cost-effective alternative to going to court.
  • Allows parties to maintain control over the outcome of the dispute.
  • Preserves relationships between buyers and sellers, which can be important in real estate transactions.

Can I hire an attorney to represent me during property purchase mediation?

While parties are not required to have legal representation during mediation, they have the option to consult with attorneys for advice and guidance throughout the process.

What happens if mediation is unsuccessful?

If mediation is unsuccessful, parties may choose to pursue other avenues for resolving their dispute, such as arbitration or litigation in court.

How do I find a qualified property purchase mediator?

You can search for qualified property purchase mediators through local mediation organizations, legal directories, or by asking for recommendations from real estate professionals.