Real estate transactions can be complex and involve a lot of different parties, including buyers, sellers, agents, lenders, and more. With so many different people involved, it’s not uncommon for disputes to arise during the transaction process. These disputes can range from disagreements about the purchase price or closing date to more serious issues like breaches of contract or fraud.
When disputes arise in real estate transactions, it can be tempting to immediately turn to litigation. However, litigation can be costly, time-consuming, and stressful for all parties involved. Fortunately, there is an alternative to litigation: commercial mediation.
Commercial mediation is a process where a neutral third-party mediator helps the parties in a dispute come to a mutually acceptable resolution. The mediator does not have the power to make a binding decision, but instead works with the parties to help them reach an agreement on their own terms.
Here are some steps you can take to use commercial mediation to resolve disputes in real estate transactions:
Choose a mediator
The first step in using commercial mediation is to choose a mediator. Look for someone, such as myself, who is experienced in real estate disputes and has a reputation for being fair, neutral, and impartial.
Agree on the terms of mediation
Before the mediation process can begin, all parties involved must agree to participate in mediation and agree on the terms of the process. This includes deciding on the location, timing, and duration of the mediation, as well as any fees associated with the process.
Prepare for mediation
Once the terms of mediation have been agreed upon, all parties involved should prepare for the mediation session. This may include gathering relevant documents and evidence, reviewing any relevant contracts or agreements, and preparing a list of potential solutions to the dispute.
Participate in mediation
During the mediation session, the mediator will work with the parties to help them come to a mutually acceptable resolution. This may involve discussing the issues at hand, identifying common ground, and brainstorming potential solutions.
Reach an agreement
If the parties are able to reach an agreement during mediation, the terms of the agreement should be put in writing and signed by all parties involved. This agreement will be binding and can be used to resolve the dispute.
Overall, commercial mediation can be an effective way to resolve disputes in real estate transactions. By choosing a neutral mediator and working together to find a mutually acceptable solution, all parties involved can avoid the stress, cost, and uncertainty of litigation.
For an experienced Mediator to help negotiate a resolution to your commercial dispute contact Ken Strongman. Here.
About the Author: As a professional Mediator and Arbitrator since 2004 Ken Strongman has years of experience and has successfully resolved disputes in the fields of Business/Commercial, Securities, Estates/Probate/Trusts, Real Estate, Intellectual Property, Construction Defects, Construction Contracts, Employment, and Environment. He is also a Mediator and Arbitrator for FINRA.
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