A buyer submits an offer on a home in Stockton using the C.A.R. RPA with a mediation clause. After close of escrow, a dispute arises over undisclosed repairs. Under the C.A.R. RPA mediation provision, what happens if one party refuses to mediate before filing a lawsuit?
Correct Answer
D) The refusing party may not recover attorney fees even if they prevail in the lawsuit
Under the C.A.R. RPA mediation clause, a party who refuses to mediate before filing or responding to a lawsuit forfeits the right to recover attorney fees in the action, even if that party ultimately prevails. This creates a strong incentive to mediate disputes before litigating.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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