You may reach closing day and expect the hard part to be over. Then a dispute may arise over repairs, disclosures or earnest money. Many Kentucky purchase agreements use forms from the Greater Louisville Association of Realtors (GLAR), a regional real estate association that provides standard contract templates.
These agreements often include a mediation clause that may require mediation before a more formal dispute process begins. That first step may help you address the matter without moving straight into a courtroom fight.
Understanding the GLAR mediation clause
The GLAR clause may cover disputes tied to the purchase agreement, the property’s condition or statements made during the transaction. It may apply when the claim exceeds Kentucky’s small claims limits. This clause often serves as an early dispute step before the parties move into a more formal process.
During mediation, a neutral mediator guides the discussion and encourages both sides to explore possible settlement terms. The mediator does not issue a decision, assign fault or decide who should prevail.
Resolving disputes through mediation
Mediation may give you a chance to address the conflict early and take part in the discussion. You may use mediation to:
- Explain the dispute clearly
- Review possible settlement terms
- Address costs earlier
- Avoid a longer fight
If you reach a signed agreement during mediation, the dispute may end at that point without moving into a formal proceeding. If discussions do not produce a resolution, the purchase agreement may direct the matter to binding arbitration rather than a traditional court case, depending on the terms written in the contract.
Considering mediation before pursuing a formal dispute
If a dispute arises after signing your purchase agreement, review the mediation clause in the contract before taking further action. The clause may outline when mediation applies and what steps the parties may need to follow. Gathering documents tied to the transaction, such as the purchase agreement, inspection reports or written communications, may also help you prepare for that discussion.
If questions remain about the clause or the dispute process, you may wish to speak with a real estate attorney who handles Kentucky contract conflicts. Early guidance may help you evaluate mediation and consider what direction to take next.