Mediation dispute of 'reasonable ' work repairs
My husband and I just canceled a contract to purchase real estate. The contract gave us time to do an inspection. It said we had 10 days to give the seller notice of things we wanted done. Actually, it said we could give him notice of "reasonable" items of work we want completed. Then, the seller had five days to respond. He responded and said he would not do all the work we wanted him to do. He said what we wanted was not "reasonable." We canceled the contract. Now, we received a notice from an alternative dispute company saying the seller wants to mediate the dispute. We did not initial the arbitration clause in the contract. Do we have to go? Do we need an attorney? It seems like a waste of time because we bought another house. A: If your real estate contract provided for you to mediate disputes with the seller arising out of the real estate contract, then not to be in breach requires you to attend mediation. I believe that whether the repairs or work items you requested were "reasonable" will be a topic of the mediation. The seller is upset because you canceled the contract and he may intend to sue you. If you did not sign the arbitration clause in the contract, but did sign the mediation clause, you are contractually bound to mediate, but not arbitrate your dispute. Most forms of residential real estate contracts provide for non-binding mediation to try to resolve conflicts before the parties litigate or arbitrate them. In a mediation proceeding, you do not have to have an attorney represent you. However, if you wish, you may do so. Some people are more comfortable with an attorney present. For others, cost is a big item and attorneys usually cost money. At the hearing, you and the seller shall discuss your contentions with the assistance of a mediator. You and the seller may even go into different rooms so the mediator can speak to you individually about what the other party is asking. The mediator is not an arbitrator or judge. The mediator's role is to try to facilitate the parties reaching an agreement, if possible. In your case, whether you were reasonable in defining the repairs and work items will be the major discussion point.