My buyer client asked me to explain the Mediation Paragraph in the One to Four Family Residential Contract (Resale) before she submits an offer on the form. Does agreeing to this paragraph mean she can’t sue the seller if he breaches the contract?

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  • My buyer client asked me to explain the Mediation Paragraph in the One to Four Family Residential Contract (Resale) before she submits an offer on the form. Does agreeing to this paragraph mean she can’t sue the seller if he breaches the contract?

If a contract-related issue arises that can’t be resolved through informal discussion, the parties must submit to a mutually acceptable mediation service or provider and pay the cost for mediation equally.

TREC recently revised its contracts to change the requirement to mediate from optional to mandatory. Buyers and sellers must now attempt to resolve any contract-related dispute through mediation before going through the court system.

Source: TAR

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