Mediating In A Real Estate Dispute

Mediation has become a popular alternative resolution process in various kinds of disputes. The main reason for this is because of the much faster turnaround time in possibly resolving a conflict between parties. This is, of course, in comparison with the litigation process. In this regard, it would be prudent to know some important aspects about its applicability and appropriateness in resolving real estate disputes. Contact us today for legal counsel.

How real estate dispute may emanate?

There are many reasons why a real estate dispute may emanate between parties. Some of the most common reasons are the following:

  • Violation in any of the provisions of the terms and conditions of the agreement between the lessee and the lessor;
  • Misinterpretation of facts;
  • Conflict between the vendor and the vendee regarding the price of a movable or immovable item in the property;
  • Misunderstanding on the easement rights, most especially among neighbours;
  • Nuisance caused by either or both parties; or
  • Possession or adverse possession of an immovable property.

Who are usually the disputing parties?

A real estate dispute or conflict may arise between the following parties:

  • Tenant and land lord (lessee and lessor);
  • Home Owner's Association and a member or members;
  • Buyer and seller of a property;
  • Broker and client;
  • Among brokers;
  • Among neighbours;
  • Contractor and a client.

Mediation Process in a Real Estate Dispute

Unlike other kinds of conflicts, which only involve at most two (2) parties, a real estate dispute may arise between multiple parties. It is in this light that some advocates of alternative dispute resolution think that mediation is among the most viable solution.

With that, it would be vital that the mediator is well versed and trained in different areas of a real estate business. Having lots of experience in the field would also help build the credibility of the mediator, and also when it comes to honing his or her wisdom, which is vital in making the entire process successful.

In terms of the process of mediation, the following steps or activities are usually undertaken:

  • Introduction of the mediator to the disputing parties.
  • Initial gathering of the interest of each party.
  • Explanation of the mediation process, which is done by the mediator.
  • Examination of the pertinent documents, assessing or fixing dates, place and list of participants who will be involved in the negotiation process.
  • Explanation of the rules of mediation, as well as the essence of confidentiality when it comes to the mediation process.
  • The mediator separately hears each side.
  • Dividing the issues into either agreeable or disputable.
  • Discussion of alternative solutions.
  • Discussion of the acceptance of the viable alternative solution.
  • The mediator encourages the parties to arrive at a mutual agreement or solution.
  • Finalize the solution.

What are the benefits of the mediation process?

Among the advantages of mediation over other alternative or mainstream dispute resolution include:

  • It is voluntary.
  • It is non-binding.
  • It is less painful.

Contact our Austin business & litigation attorneys today for legal advice regarding your real estate dispute.