BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
SMALL CLAIMS COURT MANUAL
CAR has produced an excellent Small Claims Court Assistance Manual for REALTORS® and Their Clients” which can be found at
http://www.car.org/legal/real-estate-resources-law/SmallClaimsCourt/ManualPDF/
Small Claims Court is designed for a quick resolution of matters where damages are $10,000.00 or less for individuals or $5,000.00 or less for entities.
This is a detailed guide for bringing and defending small claims court cases. It covers how to prepare and present a case for a variety of different real estate types of claims.
For example, there are sections on listing broker claims for commission; claims based on buyer cancelling the contract and disputes over deposits; brokers defending claims by buyers, etc.
There are sample opening statements, documents lists, even relevant case law to support the claim or the defense of a claim.
For example, in a failed real estate transaction where the Seller and Buyer cannot agree on the disposition of the deposit in escrow, if the amount is $10,000.00 or less, either of the parties can proceed directly to Small Claims Court, bypassing mediation and arbitration, even if they are a part of the contract. The arbitration clause contains an exemption for Small Claims actions.
Even if the amount in dispute is a bit above $10,000.00, the party may wish to proceed to Small Claims Court for the maximum $10,000.00, as opposed to hiring an attorney and netting less after paying the attorney’s fees. The complainant should consult with counsel if they need advice in this area.
All brokers, managers and agents who may be going to small claims court should review this manual for useful tips. This Manual can also be given to clients to assist them in bringing their case to court or in defending a claim against them.
This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2013 08/09/13