Know How to Explain the Mediation Clause in Your Real Estate Contract to Buyer and Sellers

You're about to close the deal, and up pops the paperwork full of fancy legalese on mediation. Do you have the selling tips you need to break it down for your clients without losing the sale?

Dealing with disputes

Real estate disagreements come in all shapes, from the sobering to the stupid. Mediation is just one way of dealing with them in the rare instance they should arise.

Why mediation?

Society is growing increasingly litigious, at great monetary, time, and emotional expense to the parties involved – not to mention the economy. Mediation offers a popular alternative, rising in frequency of use due to its unique ability to reduce these tolls.

Baby steps

Mediation is the first step toward dispute resolution. More informal than arbitration, it occurs outside the court system, involving a neutral third party – the mediator – whose goal is to assist parties in the dispute in reaching a mutually acceptable settlement to the dispute.

Leave your debate skills at the door

Mediation is a non-adversarial process. There are no arguments or cases made to the mediator as there would be in a court case or arbitration. Instead, the mediator guides both parties to a mutually satisfactory solution. Compromises and trade-offs are encouraged, and after a settlement is reached, an agreement is signed by parties involved.

Paying your fair share

When it comes to mediation costs, it is typical for parties to equally divide fees, which typically include an initial filing/processing fee and hourly fees for the dispute resolution itself. There are also many free or nominal cost available by local government agencies as well.

Not the only egg in the basket

Should mediation be unsuccessful, you are not contractually bound. Dispute resolution via arbitration or litigation can still be pursued.

To view the original article, visit the Properties Online blog.