How Does Mediation Work for Florida Real Estate Contract Disputes?
Direct Answer
Florida real estate contract disputes are often mediated because many standard contracts require mediation before a lawsuit is filed.
Most standard Florida real estate contracts — including the FAR/BAR AS IS Residential Contract for Sale and Purchase — contain a mandatory mediation clause requiring the parties to mediate before filing suit. This clause is typically found in Paragraph 17 and requires mediation through a mutually agreed mediator or, if the parties cannot agree, through the American Arbitration Association (AAA) or a similar provider. The clause covers disputes arising from or relating to the contract, including inspection disputes, financing contingency disagreements, title issues, and post-closing claims. Failure to mediate before filing suit is a defense that can result in dismissal or a stay of the litigation. In commercial real estate disputes, the parties may also be subject to court-ordered mediation once litigation is filed under Rule 1.700. Mediators handling real estate disputes should understand Florida's disclosure requirements under $689.261, the Homeowners' Association Act ($720), and the Condominium Act ($718), as well as standard title insurance practices.