Mediation is an efficient and economical way to resolve business disputes between professionals, clients and customers. Real estate is no exception. There are many benefits to choosing mediation. Mediation can be quicker and a lot less stressful than litigation. It is a private and structured forum for all parties, including agents, brokers, buyers and sellers, to be heard and understood. Simply put, mediation is a negotiation facilitated by a third party trained to bring understanding and compromise to the dispute through various strategies, techniques and tactics.

I agree with the Utah Association of Realtors when they state that “in contract negotiations and binding agreements, disputes are bound to arise. Even realtors who are committed to high standards of conduct occasionally have honest business disputes with other professionals, clients, or customers.” The party requesting mediation should not be thought of as weak, negligent or incompetent, but rather intelligent and resourceful. Mediation is an effective tool to gain perspective, clarify misunderstanding, and put closure on a stressful situation.

In today’s real estate market most agreements and contracts contain a mediation clause that directs the parties to mediation should a dispute or disagreement arise from the contract. The clause usually says the parties “shall” mediate or the parties “may” mediate. If the contract states “shall” then the parties must mediate any dispute before they can pursue the claim in a court of law. If one party refuses to mediate then the other party can petition the court to enforce the mediation clause and the court will most likely compel the parties to mediate. If the contracts states “may” then the parties can pursue either mediation or litigation, although I would strongly recommend they try mediation.

Mediation is non-binding, meaning the parties are not bound to anything that happens in the mediation unless they agree in writing. Mediation is a safe forum that offers opportunity for resolution of burdening conflicts. From my experience real estate mediation is extremely effective and most of the time all parties leave with a resolution and a huge burden off their backs.

King Mediation specializes in real estate dispute resolution and would love to assist you in resolving your dispute. Please contact us to schedule your mediation with all necessary parties or to find out more about the mediation process.

For more information click on the links below to read two wonderful brochures on mediation provided by the Utah Association of REALTORS.