When the time comes to buy or sell business property, it’s important that you have an understanding of sales agreements. These agreements outline all aspects of the sale, including the price point. The final version of a purchase and sale agreement can be quite complicated, which is why it’s vital to work with a business law attorney when buying or selling a property. You don’t want to just agree to any contract when purchasing property for your business. And the same goes when trying to sell your company’s property.
Items Included in a Sales Agreement
The majority of sales agreements will include the following items:
- Information regarding a mortgage
- Deposit amounts
- The price of the property
- Details about buyer default
- The condition of the property
- Details regarding repairs to the property
- The closing date
- Contingency and concession details
The final goal of a sales agreement is to protect both the buyer and the seller in the transaction. Guidance from an experienced attorney is vital because of the legal issues that can arise in the sale of a commercial property. The other party could decide to back out of the agreement, issues with the property itself could arise, or the closing could be delayed for various reasons. An attorney can help you understand these problems and find ways to resolve them so the agreement can move forward.
Causes of Sales Agreement Disputes
Sales agreement disputes are caused by any of the following issues:
- Breach of contract
- Failure to perform an action
- Co-owner disputes
- Issues with the property title
- Issues with property insurance
- Disputes over the property’s boundary
The Benefits of Mediation
There are various benefits of mediation when working to resolve sales agreement disputes, including confidentiality. Confidentiality is important in mediation because it allows the parties involved to speak freely about the dispute and what they want to achieve with a settlement. Whatever is discussed in mediation is not to be discussed publicly by either party, their attorney, or the mediator. The results of the mediation negotiations are also kept confidential, unlike the outcome of a trial or arbitration.
Mediation is a quicker dispute resolution method compared to arbitration and litigation because the parties involved determine the pace of negotiations. There’s no reliance on scheduling a trial date, depositions, procurement of expert witnesses, etc. Both parties simply sit down at their earliest convenience and begin discussing the issue at hand.
You are permitted, and welcomed, to have an attorney represent you during mediation. Just because you are not sitting in front of an arbitrator or a judge does not mean you shouldn’t have legal representation. Mediating a sales agreement dispute should never be done without the counsel of an attorney.
Mediation offers a simpler, quicker solution to menial disputes so that frivolous claims are not filed with the court. Some disputes can be resolved in just one day. Others might take a couple of days to resolve using multiple negotiating sessions. Either way, you can begin the mediation process immediately instead of having to wait months to years for a trial to begin.
Other benefits of mediation include the following:
- Both parties keep their right to enter into arbitration or litigation if mediation is unsuccessful
- Goodwill can be restored between both parties using mediation
- The result is non-binding
- The entire process and agreement can be flexible, which allows both parties to move beyond the letter of the law to reach a resolution
- It is less likely for either party to go to court to have the agreement enforced because the parties entered into the agreement willfully and not because of a decision made by an arbitrator
- The true interests of all parties involved are put on display, not just their position within the dispute
It is within your rights to include a provision in the sale agreement that requires the parties to resolve certain disputes that arise via the mediation process.
Speak with an Attorney Today
If you have encountered a sales agreement dispute during the sale of your business property, it is in your best interest to speak with an experienced business law attorney. The legal nuances of such a dispute can be difficult to understand, which could lead to more serious problems with the agreement. The most affordable option for resolving a sales agreement dispute is the mediation process. You control the pace and the outcome, it is confidential, and you can have your attorney present. Contact Shapiro Mediation Services in Massachusetts at (339) 298-7733 or fill out our contact form to schedule a consultation.