Paragraph 17 · Attorney’s Fees and Costs
Paragraph 17 treats mediation and litigation differently. Understanding who initially pays—and when one party may recover fees from the other—can materially affect how buyers and sellers evaluate a dispute.
Paragraph 17 does not simply say that the losing side always pays every expense. It establishes one allocation for mediation and a different prevailing-party provision for litigation permitted by the contract.
That distinction matters before a party assumes that attorney’s fees will automatically be reimbursed—or that the cost of pursuing a dispute carries no personal financial risk.
The two cost structures
For mediation permitted by the contract, Paragraph 17 separates the mediator’s fee from each party’s individual professional expenses.
When litigation is permitted by the contract, Paragraph 17 provides a potential shift of costs and fees between the parties.
A common misconception
During mediation, each party is responsible for their own attorney’s fees and related expenses, even when that party believes the facts and contract strongly support their position.
The prevailing-party language applies to litigation permitted by the contract. Determining who prevailed, which expenses are recoverable and what attorney’s fees are reasonable can itself require legal analysis or a court determination.
Important: A negotiated settlement can also address fees and costs differently if the parties agree. The language of the final settlement matters.
Three terms worth understanding
The charge for the neutral mediator’s services. Paragraph 17 says the parties split this fee equally.
The party legally recognized as having prevailed in permitted litigation. The answer may be less obvious when results are mixed.
The contract does not promise reimbursement of every dollar billed. Reasonableness is evaluated through the applicable legal process.
The paragraph expressly survives closing or termination of the contract. That means its fee-and-cost provisions can remain relevant when a covered dispute continues or arises after the transaction has closed or the contract has ended. Whether it applies to a particular claim should be evaluated by a qualified attorney.
Before costs escalate
These are practical preparation steps and are not a substitute for legal advice.
Review Paragraphs 16 and 17 with the complete signed agreement.
Identify the result you need—not merely the position you want to defend.
Discuss expected fees, costs and possible fee-shifting with counsel.
Compare a certain negotiated result with the risk and cost of litigation.
Ensure any settlement clearly addresses funds, claims, fees and releases.
Review the complete series
When a contract question requires legal advice
Some disagreements cannot be resolved through brokerage guidance alone. Questions involving contract interpretation, default, escrow disputes, mediation, litigation, HOA matters or estate planning should be reviewed by a qualified Florida attorney.
DW&Co. Real Estate has developed a trusted working relationship with BCN Law Firm in Clermont, including Wade Boyette, Ken Costello and Heath Nailos. BCN assists Central Florida clients across a range of legal matters, including real estate, civil disputes, HOA concerns, estate planning, wills and trusts.
BCN Law Firm is an independent law firm. DW&Co. Real Estate has no ownership interest, referral-fee arrangement or other financial incentive connected to this recommendation. Consumers are free to select any attorney or law firm of their choosing. DW&Co. Real Estate does not provide legal advice.
