How Does Real Estate Mediation Work in Florida?

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By Gary M. Landau, Esq.

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How Does Real Estate Mediation Work in Florida? | Call (954) 979-6566

No one wants to be involved in a real estate dispute. And most of the time, when a deal is struck between a seller and a buyer it closes smoothly. But once in a while, problems arise. Often, this happens when the buyer wants to back out of a deal but the seller wants them to go forward..

In this case, rather than sue in court–a lengthy and often expensive proposition–you may want to consider a real estate mediation.

Real estate mediation is a method of resolving conflicts with the help of a neutral third party. The Law Office of Gary M. Landau, P.A. has offered mediations for real estate disputes for many years, helping opposing parties come to mutually beneficial solutions.

Don’t simply search for “mediators near me” and choose someone without extensive experience in the process. Instead, read on to learn about real estate mediation in Florida, and contact our office if you find yourself in this situation.

What Is Real Estate Mediation?

Mediation is a form of conflict resolution that avoids the expense, delay, and hassle of litigation. It’s a method of alternative dispute resolution (ADR), along with arbitration.

Mediation is helpful for real estate conflicts where both parties to the contract cannot reach an agreement on their own.

Unlike an arbitrator, a mediator is not empowered to decide who is right and who is wrong, nor how the dispute should be resolved. The mediator’s role is to encourage all parties to consider mutually beneficial solutions and come to a resolution, which often turns out to be a compromise for everyone.

Many disputes are resolved by mediation. But if a mutually satisfying solution cannot be worked out, the parties can then take their matter to court.

Mediators are specially trained and certified by the court system. A mediator does not provide legal advice, business advice, or therapy. In Florida, mediators must adopt a set of ethical standards to act in this role.

Gary M. Landau has been a certified real estate mediator for more than a decade. He has helped conflicting parties resolve many disputes to everyone’s satisfaction.

Common Real Estate Disputes

Mediation can be helpful for a wide range of real estate disputes. Some common scenarios include:

    • Breaching contract terms
    • The desire not to close a deal despite having a binding contract
    • Sellers not disclosing defects or assessments they know about to the buyer
    • Sellers taking items out of the home that were supposed to remain, per the contract.

Real estate disputes can involve a significant amount of money. For example a buyer may have put down tens of thousands of dollars as a deposit that the seller is not releasing because of the dispute.

Or a buyer may feel that the seller owes them substantial money after they move in and discover a major defect they need to pay to fix that the seller was aware of but didn’t disclose.

Even when the dispute involves a lot of money, it can be wise to settle it with mediation.

Benefits of Real Estate Mediation

The primary benefit of real estate mediation is that all parties can settle their differences without having to sue.

Litigation can be expensive, because all parties need to pay attorneys, and there are court fees as well. Litigation is also time-consuming and stressful. Additionally, it relies on a judge or jury to make the final decision, rather than allowing all parties to have a say through mediation.

Real estate mediation is also faster than suing. This is especially important if a seller hopes to put their home back on the market while in a dispute with a buyer who has a contract but does not want to close on the home. During the time there is a contract with the buyer, the seller will have difficulty entering into a sales contract with another party.

In mediation, all parties must agree to a settlement before it is written down and signed by everyone. Once everyone has reached this agreement, all parties sign a legally binding document that becomes enforceable by the court.

Mediation is an effective, fast, and affordable process for resolving real estate disputes.

How Does Real Estate Mediation Work?

Real estate mediation follows these steps:

    1. The mediator meets all parties in one location and explains to each side what the process is and what the mediator’s role is, emphasizing that it is the parties that decide the resolution.
    2. During the attempt to reach a resolution through mediation, each party is kept in a separate room, with the mediator acting as the go-between. The mediator invites each party to talk about the dispute and describe their desired outcome.
    3. The mediator keeps information discussed by each party strictly confidential.

A mediation session ends in one of three ways:

    • With the mediator’s help, the parties decide how they will resolve the issues and sign an agreement that stipulates the resolution. This happens with many real estate disputes.
    • The mediator adjourns the session for the day so the parties can continue their mediation another time and hopefully come to a resolution..
    • The parties reach an impasse with no hope of a resolution, and the mediation ends. Often the parties’ next step in this case is litigation.

If the amount of money involved is especially significant, parties may bring an attorney to the mediation to help communicate their desires and to review a final agreement, although this is uncommon.

Like other forms of alternative dispute resolutions, mediation is increasing how disputing parties are resolving their issues. Compared to litigation, which can drag on for months or years, mediation is a much faster and lower-stress way to resolve important real estate disputes

Contact The Law Office of Gary M. Landau, P.A. for Real Estate Mediation

Gary M. Landau is a Florida State Supreme Court-certified mediator who has helped many parties quickly and easily resolve their real estate disputes through win-win mediation.

With more than 25 years of experience and countless satisfied clients, Gary M. Landau and his team are also uniquely positioned to help you with your probate and real estate needs in South Florida. Whether you’re ready to probate a loved one’s estate or to write your own will, or if you are purchasing a home, have inherited a home, or want a closing agent to handle title insurance and all documents for your closing or refinancing, the Law Office of Gary M. Landau is ready to work with you.

Contact the Law Office of Gary M. Landau today at 954-979-6566, or fill out our online form, to schedule your consultation at no cost.

Copyright © 2022. LAW OFFICE OF GARY M. LANDAU, P.A. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction.

LAW OFFICE OF GARY M. LANDAU, P.A.
7401 Wiles Road, Suite 204
Coral Springs, FL 33067
(954) 979-6566
https://garylandau.com/

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Frequently Asked Questions

A will is the simplest way to ensure that your funds, property and personal things will be distributed after your death the way you want them to. Even if you have very few assets, you will benefit from having a will. About half of all Americans die without a will (known in legal terminology as dying intestate). Without a will to indicate your wishes, the court steps in and distributes your property according to state law. A will ensures that your assets will be given to family members or other beneficiaries you designate.

 

Having a will is doubly important if you have young children. One section of the will allows you to designate a guardian for them in the event of your death. Without a will, the court will appoint a guardian for your children, who may not be the person you desire.

Many Florida residents have out-of-state wills, drawn up while they were still living among the hills of North Carolina or the hubbub of New York. If the will was valid according to your old state’s laws at the time you made it, it is still legal in Florida. However, if you are a Florida resident, you may benefit greatly by having a new will drawn up in Florida, because it will likely be more easily admitted to probate.

 

It is important to know that each state has its own requirements for what makes a will a legally binding document. For example, Florida doesn’t recognize handwritten wills that haven’t been witnessed (known as “holographic wills”), or oral wills not put into writing, even if other states okay them. There’s also the matter of Florida estate law. In this state, for example, your surviving spouse is entitled to 30 percent of your net probate estate, regardless of what you say in your will. The spouse may also have a “Homestead” interest in property you share here, even if you want your house to go to someone else. In fact, all real property owned in Florida will be subject to this state’s laws, even if you’re a snowbird maintaining a residence in the state where your will was drawn up. Other peculiarities also exist, which is why a Florida will could make things much easier for your heirs.

 

If you would like to have me review your current out-of-state will, I am happy to do so without charge. If it turns out to be in accordance with Florida state laws and procedures, you can continue to rely on it. If not, however, your heirs would rather you discover that now.

It is a good idea to re-read your will every few years to be sure it reflects up-to-date realities (you may not want to leave your heirloom to a niece you are no longer speaking to, nor have someone be named your child’s guardian if they have taken seriously ill since you drafted your will). It is especially important to reexamine your will if:

 

  • You have gotten married since it was last drafted;
  • You have made bequests to people who have fallen out of your favor or are no longer living (I recently updated the will of a man who had left everything to his first wife, who was long deceased), or you have not included people who are now dear to you;
  • You would like to change the person named as the personal representative of the estate. (Note: Florida law does not allow a nonresident of the state to serve in this position, unless it is an immediate family member or certain other relatives);
  • You have acquired pricey or sentimental items that are not accounted for in your will. Do note, though, that Florida law allows you to attach a separate personal property memorandum to your will, detailing who will get which specific items. This list can be changed whenever you want.

Perhaps I should answer this question with where not to store it: in a bank’s safety deposit box. Although it may seem logical to put this with your other important papers, it is often difficult for your heirs to gain access to the box once you die, since the box is sealed then and must be opened in the presence of a bank employee.

 

One good option is to leave your original will with the attorney who drafted it, making copies for your personal representative and other important relatives and letting them know who has the original. For my clients who prefer that I store their original will, I keep it in a fireproof will vault in my office, or in the vault in my bank.

 

As an alternative, you could store the will in a fireproof box or vault in your own home.

 

Wherever you store it, be sure to let your personal representative and other close relatives know where you have put it!

Probate is when the court oversees your assets and liabilities after your death. During probate, the court makes sure that your will is valid and acceptable; that all debts, bills, creditor’s claims, and taxes are paid from your estate’s assets; and that your remaining assets are distributed to your beneficiaries according to your will (or, if no will exists, by Florida law).

 

Probate usually does take longer than most beneficiaries would like. But in order to ensure that everyone with a right to a claim is included in the process, the court requires several steps. If the size and complexity of your estate are minimal, however, the entire process of probate can take as little as a few months. Larger estates that are subject to IRS estate taxes or those involving litigation on the part of creditors or heirs generally take longer, often one or more years.

 

To speed the process along for simple and small estates, the courts allow a shortened form of probate, known as “summary administration,” which requires much less paperwork and time.

A personal representative (PR) is a friend or relative, or an attorney or bank, who is put in charge of the estate until all matters regarding the probate are resolved. (In other states, this person is sometimes called an executor or administrator.) The job of the PR includes identifying all assets, searching for creditors and paying valid claims, filing required estate tax returns if the estate is large enough (the figure escalates over time, according to Congressional laws), coordinating with the probate court and attorneys, and overseeing the distribution of assets–all done under the guidance and assistance of a qualified attorney.

 

Serving as a PR is an important role, and such a person should be selected with care as to who is most willing and best able to serve in this position. By Florida law, your personal representative must be over 18 years of age, and be a blood relative, your spouse, the parent or child of your spouse, or a Florida resident.

Generally, no. If you co-own all property via such legal structures as “tenancy by the entirety” or by “joint tenancy with right of survivorship” the property immediately passed to you upon your spouse’s death. Proof of death is usually all that is needed to pass such jointly owned title for cars, stocks, and other personal property to the surviving spouse.

 

But if even one asset was held solely in the deceased person’s name, or any property is owned in the form of a “tenancy in common,” that estate will be required to go through probate. If the assets are limited, the shorter, simpler form of probate is generally all that is required.
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