A dispute develops
The parties disagree about the contract, a breach, enforcement, interpretation or entitlement to the deposit.
Paragraph 16 · Dispute Resolution
When a contract disagreement becomes a dispute.
Paragraph 16 establishes a pathway for unresolved claims involving the contract, its breach, enforcement or interpretation—from an opportunity to resolve conflicting escrow demands through mediation and, when necessary, court.
A dispute is broader than an escrow disagreement.
Paragraph 16 applies to unresolved controversies, claims and other matters between the buyer and seller arising from the contract or involving its breach, enforcement or interpretation.
Escrow is a frequent source of conflict, but the paragraph also reaches broader disagreements about what the contract requires and which party may enforce a contractual remedy.
The contract pathway
From disagreement to resolution.
The exact path depends on the nature of the dispute, the parties’ actions and whether the dispute is resolved at an earlier stage.
Direct resolution
For conflicting deposit demands, the contract gives the buyer and seller 10 days to try to resolve the dispute.
Mediation
If the dispute is not resolved, the parties attempt an amicable settlement with a qualified neutral mediator.
Court action
A dispute not settled through the Paragraph 16 process may proceed in the appropriate court.
10Days to attempt resolution
A commonly misunderstood deadline
The 10-day provision has a specific trigger.
Paragraph 16(a) gives the buyer and seller 10 days after conflicting demands for the deposit are made to attempt to resolve that deposit dispute. If they do not resolve it, the contract directs the parties to mediation under Paragraph 16(b).
Important: This should not be described as a universal 10-day waiting period for every contract dispute. The language specifically connects the 10-day period to conflicting demands for the deposit.
Understanding mediation
A structured opportunity to settle—not a trial.
The mediator helps the parties explore resolution but does not replace the parties’ decision-making or automatically impose a result.
What Paragraph 16 requires
The buyer and seller attempt to settle covered disputes amicably through mediation under the applicable Florida mediation framework.
- The mediator must be certified or experienced in the real estate industry.
- The process is designed to give both sides an opportunity to negotiate.
- A settlement is reached only when the parties agree to acceptable terms.
What mediation does not guarantee
Mediation creates a forum for settlement, but it does not guarantee that the dispute will end there.
- The mediator does not simply decide who receives the deposit.
- A party is not required to accept an unacceptable settlement proposal.
- An unresolved dispute may still proceed to the appropriate court.
The exception
Injunctive relief may be sought before mediation.
Paragraph 16 permits a party to seek injunctive relief without first completing the mediation requirement. Injunctive relief is a specialized court remedy intended to prevent or require certain conduct when monetary relief alone may not adequately address the situation. Whether it is available is a legal question for a qualified attorney—not a broker determination.
When a dispute begins
Protect the record before positions harden.
These are practical preparation steps and are not a substitute for legal advice.
Preserve the contract
Gather every rider, addendum, amendment and signed notice.
Build the timeline
Record dates, deadlines, delivery methods and responses.
Save communications
Keep relevant emails, texts, receipts and escrow demands.
Avoid escalation
Keep communications factual and avoid unsupported legal conclusions.
Contact counsel
Ask a Florida real estate attorney to evaluate strategy and remedies.
Continue the series
Understand the provisions surrounding Paragraph 16.
When a contract question requires legal advice
Trusted legal guidance in Central Florida.
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.
Visit BCN Law Firm
Independent trusted vendor
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.