Mediation and arbitration have become extremely popular in the world of today. All types of disputes, from real estate to divorce can be resolved through mediation. Besides, mediation tends to resolve disputes faster and for a lower cost as compared to any type of litigation. Money disputes, costs for repairs, inspection and repair issues are just some of the real estate disputes which might arise. There might be a claim of misrepresentation regarding the condition of the fixtures, appliances, and the property in general. There is no denying that mediation is less expensive and more effective. Make sure to choose a reputable mediator such as Knoxville Real Estate Mediation for the best results.
Escrow is closed rather smoothly in the majority of real estate transactions and clients seem to be happy with the results. But, there is always a likelihood of buyer/ seller disputes occurring. Some of the most common real estate disputes include misrepresentation claims and non-disclosure. General breach of contract and specific performance claims are also common. Moreover, litigating such disputes is time consuming and costly. It will cost you thousands of dollars to resolve claims and can easily take up to two years or more for a dispute that could have been resolved for much less through mediation. Mediation is a non-adversarial process wherein the disputing parties come together to discuss the dispute with a neutral third party in order to reach a resolution.
How Long Does Mediation Take & What Is the Cost?
When it comes to real estate disputes or any other disputes, the most common question that comes into people’s minds is just how long the mediation process is for and what the cost is. Normally, mediation is completed just a few months. The mediation process requires the parties to the conflict to meet with one another for a few hours for a certain period of time in order to reach a mutual agreement. On the other hand, arbitration is a more lengthy process as the parties have to agree to the decision made by the arbitrator unlike in mediation where both the parties are free to either accept the resolution or seek any other option. The cost of mediation is usually split between the parties. Typically, the mediator charges the parties on an hourly rate. However, you can be rest assured knowing that mediation costs significantly less than litigation.
When to Hire a Real Estate Mediator?
A real estate mediator is an experienced professional who has the expertise needed to resolve even the toughest of disputes. If you are not sure about when to hire a real estate mediator, then the following examples will give you an idea.
- When You Want To Decide the Outcome
If you and the other party agree to decide the outcome together, then mediation is the best option. Mediation has been designed to encourage both parties to come together and see an eye-for-an-eye. As both the parties have control of the outcome, there is less animosity and a better resolution is achieved. Unlike in a courtroom where the judge or jury gets to decide the outcome, in mediation you have greater control. If you looking for more control, then mediation is just what you need.
- Focus on Mutually Beneficial Agreement
A great thing about real estate mediation is the fact that the focus is not on winning but rather on reaching a mutually beneficial agreement. Both parties discuss their interests and needs in front of a neutral party to ensure that their side of the story is heard in a safe space. Mediation is the perfect option for reaching a mutually beneficial resolution. It has been designed to make to take unique interests and needs into account.
- When You Are On Good Terms with the Other Party
If you and the other party are already on good terms, then there is no need to pursue litigation. In order to maintain your relationship with the other party and reach an amicable resolution together, mediation is your best option. Since both parties get to address the underlying issues in a neutral setting, they get to work together to reach an agreement that is most beneficial for them. This results in a better outcome. Moreover, you get to keep your relationship with the other party. Real estate mediation is common among family members, business partners, and neighbors as they have to resolve the dispute cooperatively. Whereas, going to court would result in increased hostility and severed ties.
- Short on Time
Another situation where mediation is the best option is where you and the other party are short on time. This is especially true for investors who hold properties in different parts of the country and do not have the time to stay for a long time in order to reach an outcome. Mediation offers quick results. It is ideal for anyone on the go.
- When You Want To Be Heard
In many real estate disputes, one just wants to be heard. Mediation is a great platform to address your feelings. Both parties are encouraged to share their story during the mediation sessions which helps ensure that emotions are acknowledged. Thus, both parties can move towards reaching a settlement. Besides, people report a much higher rate of satisfaction in mediation.
- Greater Flexibility
It can be tough to attend court proceedings, especially if you have a difficult job and need to spend time with family. If you are looking for greater flexibility, then real estate mediation is the perfection. You can schedule the meetings according to your time commitments. As mediation is more flexible, you do not get to miss any of the meetings as it is crucial to reaching an amicable resolution.
Finally, when it comes to a real estate dispute, sometimes it is important to keep things private. Mediation offers confidentiality unlike litigation. Whatever is said during the mediation sessions cannot be used against you in court as the mediator is bound by law to keep things confidential.