Mediation is Mandatory in TREC’s Earnest Money Contracts

March 01, 2019

TREC’s earnest money contracts have a paragraph that requires mediation if a contract-related issue arises that can’t be resolved through informal discussion. Paragraph 16 states that the parties must submit a dispute to a mutually acceptable mediation service or provider and pay the cost for mediation equally.

If a client asks you how to proceed with mediation, you can suggest the client perform internet research on local mediation resources. You also may want to carefully consider any requests from clients to take part in the mediation. Remember that the dispute is between the parties—not the agents or brokers. You may be able to provide documents or facts that your client needs for her mediation, but take care not to participate in any manner that could be construed as the unauthorized practice of law.

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