Reason 51 - Your Real Estate Agent Helps You Get the Way Out of Disputes

Most of the buying, selling, rent, and mortgage transactions over real estate properties are arranged by a broker or an agent. Human and imperfect, she/he is prone to lapses and errors on top of the shortcomings of a professional person. Thus, there is always a possibility that certain disputes or disagreements may arise between property owners and mortgage service providers, on the one hand, and renters, buyers, and loan recipients.

My advice: If a dispute occurs, take heart; don’t despair. There’s always a solution.
Traditionally, disputes between two or more parties are resolved in court. Nowadays, they are handled by mediator who helps to solve the problem quickly. Mediation is the process in which both parties attempt to resolve their dispute with the help of third party. The mediator is the third party, who stands neutral in the disputes, and is well trained to settle the disagreement. He hears both parties and does not give his opinion; he neither passes judgment nor takes legal action for solving.

He gives them opportunity to solve their dispute mutually. The parties may also want to solve the disputes by themselves and may come to an agreement following mediation. When parties reach an agreement, they sign an agreement outlining the terms of settlement. If parties are unable to settle their dispute, it will be given to arbitrator or it may continue as if mediation has not taken place.  

The dispute may arise either from a purchase or sale transaction over a property, or may be over mortgage lending. The prospective buyer will set an appointment with a realtor or the seller of the property. The prospective buyer has to make an appointment with the loan officer and during the meeting he will ask mortgage-related questions and will expectedly obtain a quotation as for how much the buyer will be spending. Often, based on trust and verbal assurances, no further verifications are made on the true income or creditworthiness of the buyer or loan applicant.

The pre-qualification letter somehow binds the loan provider to extending a loan for a home sale or purchase. There are clauses to agreements that are helpful to the loan provider. There are certain terms that relieve the mortgage company of any legal obligation. While homeowners into foreclosures, tenants are take on new risk as they take on rental properties. When parties to agreements felt they were taken advantage of, and when the other party fails to provide a satisfactory answer, a dispute may ensue.

Plenty of homes and condos are being offered for rent because owners could not sell these   properties or they never intended to be landlords at all. They reluctantly lease out the properties to raise money for mortgage payments. But, at the rate sub-prime loans are being reset and property values decline, owners remain unable to meet mortgage amortizations. Then foreclosure process sets in, tenants are forced out of the properties, and disputes and litigations follow.

Arbitration of disputes in the court is costly. Settlement via mediation preserves relationship and leaves so much to be desired.

Buy, Sell, Rent, Invest, In Singapore

Mindy Yong 杨雯诗

CEA Registration Number : R021232Z

Tel: (+65) 91002985
Fax: (+65) 64021826

mindy@mindyyong.com

KF Property Network Pte Ltd
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