Rounding out our week of posting about legalities and liability – let’s talk about two more interesting topics: mediation and arbitration.
Let’s face it, from time to time, a buyer and seller will have a serious disagreement. Not too many years ago, the only way to settle a dispute was a lawsuit, but now there are ways to avoid one. Most real estate contracts used today have conflict resolution mechanisms in place that are private, cost effective and shorten the resolution process.
The first is an obligatory provision called mediation. Mediation is a little like marriage counseling. It’s a non-binding process where the buyer and seller retain a “mediator” to facilitate a resolution that allows the parties to obtain a mutually acceptable settlement without accessing blame or imposing guilt. The mediator can be any person who is acceptable to both parties and they act as a guide to a civilized and sensible solution that avoids a lawsuit or the next step – arbitration.
Arbitration is an optional, voluntary approach to resolving conflicts that must be separately agreed upon between the buyer and seller. It is a binding method of dispute resolution in which an arbitrator will listen to testimony, review supporting documentation and render a binding decision accessing guilt and damages. An arbitrator is often a retired superior court judge or an attorney trained in real estate arbitration. The arbitration is generally cheaper and faster than a lawsuit and it’s completely private. The arbiter’s decision is final and there is no appeal except in very rare circumstances.
Most people, with the possible exception of the trial lawyers, will agree that mediation and arbitration are superior to a lawsuit for resolving disputes between home buyers and home sellers regarding residential real estate.
Your agent will help you avoid such circumstances, but should they arise, rest assured that you do have options.
If you have enjoyed LivingWellinSanMateo – san mateo county real estate, please subscribe to our RSS feed.
Tags: first time home buyer, home buyer, home selling, san mateo county real estate, san mateo real estate
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
