Top Reasons Buyers and Sellers End Up in Mediation

Buying or selling a home is one of the most significant financial transactions people experience. Emotions can run high. The timelines are tight. Despite everyone’s best efforts, sometimes deals hit a snag—and that’s where mediation can play a critical role.

Here are the most common reasons we see buyers and sellers end up in mediation:

Failure to Disclose Known Property Defects

One of the top causes of post-sale disputes is the buyer discovering issues with the property that they believe should have been disclosed. Some examples are past water damage, pest problems, unpermitted work, or foundation issues. Disputes often center around whether the seller knew—or should have known—about the problem.

In mediation, parties often resolve these disputes by reviewing disclosure forms, inspection reports, and negotiating repair costs or financial settlements.

Disagreements Over Repairs and Credits

After a home inspection, buyers may request that certain repairs be completed or credits be issued. Sellers, on the other hand, might resist additional expenses or disagree about the scope or urgency of the repairs. These negotiations can fall apart if expectations are not clearly communicated or agreed upon in writing.

Miscommunication is a common root cause of these disputes. Mediation gives both sides the opportunity to clarify what was said, expected, or promised—and to find a practical solution.

Deposit Disputes After a Deal Falls Through

When a sale is cancelled, either party may try to claim the buyer’s earnest money deposit. The contract typically outlines when a deposit can be retained or returned, but interpretation of the contract language and facts surrounding the cancellation often lead to disputes.

Mediation can provide a neutral space to examine timelines, contingencies, and contract terms—and help parties reach a fair agreement without resorting to court.

Missed Deadlines or Breach of Contract

Whether it’s a financing contingency, inspection timeline, or close of escrow, missed deadlines can quickly escalate into accusations of contract breach. In some cases, sellers may move forward with backup offers or buyers may back out entirely—leaving both sides frustrated.

Many of these disputes involve misunderstandings about what was required or when. Mediators can help both sides understand the timeline and work toward a resolution.

Choose Mediation for Real Estate Disputes

Disagreements during or after a home sale can be emotionally draining and costly. Mediation provides a confidential, efficient, and cost-effective way to resolve disputes without going to court. Best of all, it allows both buyers and sellers to have a say in the outcome.

Discover a better way to overcome real estate disputes at the C.A.R. Real Estate Mediation Center for Consumers. Visit www.consumermediation.org or call (213) 739-8376 to learn how our mediators can facilitate your dispute resolution with expertise and care.

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