The contract is the most important part of a real estate transaction so it s critical that you pay particular attention to all of its clauses before signing it. Most lawsuits that are filed in real estate cases could be prevented with well-written contracts. Lawsuits brought by buyers usually deal with non-disclosure issues. To avoid the costs and frustration of litigation, many buyers in today s market desire to have arbitration clauses inserted into contracts.
Sellers usually prefer to leave arbitration clauses out of contracts.
The rationale behind this is that lawsuits are expensive, so the seller assumes that a buyer wouldn t risk the cost of a lawsuit. Arbitration on the other hand, is considerably less expensive, so it would be worth the buyers time and money to pursue that as a dispute resolution process. Contracts are a complex but necessary component of a real estate transaction that you ll want to have done by a real estate lawyer. For more information about what you should have in your contract, contact a real estate lawyer in your area.