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The Basics of Property Dispute Mediation

property dispute mediationIf you find yourself in the middle of a real estate or boundary dispute, you need to learn about your state’s (or your home’s state) real estate laws and regulations. These real estate laws can be difficult to navigate and shouldn’t be attempted without the consultation of a professional.

When seeking to resolve a property dispute, invested parties have three general options:

  1. Negotiation
  2. Arbitration
  3. Mediation

A settlement reached by both parties without the help of a neutral third-party is considered a negotiation. Many real estate agents and brokers negotiate to solve issues that arise during the home buying and selling process. For instance, the National Association of Realtors recommends doing a walk-through and inspection of a home before completing the purchase. If a homeowner accidentally puts a hole in the wall while moving out and the buyer sees it during the final walk-through, the real estate agent may offer to pay for the repairs to keep the buyer from pursuing further action.

Arbitration is considered the most common avenue chosen for settling real estate disputes. This requires a third party to come and make a final settlement decision that both parties must adhere to. Each state has strict regulations regarding proper foreclosure as well as opportunities to pay before the property is sold. If a homeowner feels that they haven’t received proper opportunities to pay the bank, they can pursue arbitration.

Mediation is an ideal way to resolve a dispute that can’t be settled between two parties who refuse to pursue arbitration. Property dispute mediation entails a neutral third party stepping in to help those involved come to a mutual agreement. A mediator doesn’t make an ultimate decision for the settlement, but instead helps guide the feuding parties to a compromise that satisfies both. This method can be pursued as a last-ditch effort before seeking arbitration.

Mediation is the perfect way to solve breaches of contract. A real estate purchase contract outlines the timeline of the home buying and selling process, including a closing date. If either parties fall outside of that timeline and a dispute arises, property dispute mediation can remedy the situation.

Property dispute mediation is an avenue that many homeowners and real estate agents choose when an issue arises. While the causes of disputes vary from breech of contract to eviction, mediation allows both sides to be heard, making it a popular choice for those hoping to find a solution without getting a real estate lawyer involved.

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