3 Things You Should Know About Real Estate Mediation
As the alternative to going to court, real estate mediation resolves different problems. For instance, you bought a home and after a month or so later, grey water starts flowing back. You realize that this is a serious plumbing issue such as a blockage.
To resolve the problem, you hire a professional plumber. He discovers that indeed you have a blockage in your sewer system. That is not all. He also discovers that the septic system is in your neighbor’s property.
How do you avoid a lengthy litigation process when this happens? Hire a professional real estate mediator.
Read on and learn 3 things you should know about real estate mediation.
1. Is Mediation of Real Estate Disputes Appropriate in All Situations?
Actually, no. Property mediation helps to settle specific issues but not all. For instance, if one of the parties committed a criminal act, the best course of action would be litigation.
Let’s assume homeowners have disputes or ethical complaints against realtors. Such issues go through arbitration procedures as dictated by the NAR. A good example is where mediation is included in a written agreement.
For instance, the Residential Purchase Agreement. Also, if communication has broken down in real estate negotiations, start a mediation.
Here is what you need to do.
- Both parties have to select a professional mediator or mediation service
- Both parties can hire attorneys
- Both parties have to pay the mediation fee
Remember, mediation is for buyers, sellers, and real estate agents.
2. How Long Is the Mediation Process?
One of the parties can start a mediation. The process starts with the signing and submission of the Request for Mediation Form to the Real Estate Mediation Center. This form must have a copy of the executed contract that contains the mediation clause.
If the written agreement is not present, parties should submit a written request. They should also include their names, addresses and phone numbers plus the fee.
After paying the filing fee, meditation starts within a few months. The process itself takes a few hours for the parties to reach an agreement. As part of the real estate dispute resolution procedure, parties have to split costs.
Learn more about alternative dispute resolution and resolve your conflicts peacefully.
3. What If an Agreement Is Not Reached After Real Estate Mediation?
Well, in that case, both parties have to seek other avenues to resolve their dispute. What you need to know is that mediation is highly successful. Why? Its aim is not to ensure one party wins while the other loses.
The aim is to find a middle ground and ensure that the dispute is resolved amicably. Even if mediation does not help, it is an effective way of reaching future proceedings. Also, it helps to narrow the areas of dispute.
Remember, the mediator represents no side and cannot make decisions on parties’ behalf. Also, he or she has no power to enforce an agreement.
Why Litigate While You Can Seek Real Estate Mediation?
Unlike litigation, real estate mediation is not time-consuming. Also, it is not expensive which could lead to stressful situations. To ensure that you are able to reach an agreement, hire a professional mediator.
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