Disputes in California real estate transactions can arise from a variety of issues, ranging from earnest money deposit disagreements to undisclosed property defects. When these conflicts occur, the California Association of Realtors (CAR) Residential Purchase Agreement (RPA) provides an important step for resolution: mediation. This process, designed to avoid litigation, is not only efficient and cost-effective but also a prerequisite for recovering prevailing-party attorney’s fees in most disputes.
Here’s what you need to know about mediation, how it works, and why it’s an effective tool for resolving real estate disputes.
Why Mediation Is Required
Under the CAR RPA, buyers and sellers must attempt mediation before pursuing litigation or arbitration if they want to retain the right to recover attorney’s fees. Skipping this step or failing to engage in good faith …
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