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Health & Fitness

St. Louis Real Estate Tip of the Week: Why Mediation is Best for Real Estate Disputes

Mediation is a very constructive and amicable means of resolving disputes because it is informal, fewer rules to follow, and the parties can control the process. Here are top reason to consider mediation vs. arbitration when so much is at stake.

Mediation is a very constructive and amicable means of resolving disputes because it is informal, fewer rules to follow, and the parties can control the process. To achieve the quick and cost effectiveness that you might be looking for, mediation has several other benefits over arbitration or litigation.

ONE: NEUTRAL MEDIATOR

Mediation is a non-binding voluntary settlement process in which a neutral third party (the mediator):

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1.    Facilitates communication and negotiation between the two parties. 

2.    Preserves relationships and can help build a positive framework for future interactions based upon mutual interest so similar problems can be resolved in the future. 

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3.    Poses no risk since no one can force a decision on him or her. 

4.    No authority to force a settlement on the parties. Instead, the mediator helps the parties try to reach a mutually agreeable settlement. 

5.    Does not disclose any information to the opposing side without consent.  If a settlement cannot be reached, the parties are free to pursue other legal remedies.

6.    Listens with empathy and will make certain that you are heard and your feelings are understood.  In the mediation session, it may be the first time that you will have the opportunity to explain your cause to an interested and neutral person.  To be heard and understood by someone with no stake in the matter is important to the parties agreeing to mediation.

7.    Parties have the opportunity to give a short and informal summary of their case.  This allows the party and the mediator an opportunity to gain an understanding of each side’s position.  The parties then separate into caucuses.  Once the parties are separated, the mediator typically moves back and forth several times between the caucuses.

8.    The mediator gains knowledge or facts that can help facilitate a settlement.  The mediator can explore many avenues to a solution that may not have been considered without the private caucuses.  The mediator is in a better position to understand the conflict and each party’s position, and to assist the parties to be more creative in resolving the conflict.

TWO: ENCOURAGES SETTLEMENT

The dynamics of mediation encourages settlement results in several ways:

1.    Mediation brings parties together face to face. 

2.    It educates and helps all sides come to a realistic understanding of the strengths and weaknesses of their positions. 

3.    It can bring about serious settlement negotiations early, often before suit is filed.

4.    Its flexible nature allows exploration of all possible avenues to reach settlement. 

5.    By promoting early settlement, mediation helps the parties avoid the cost of extended litigation. 

6.    Mediation allows the parties to control the outcome, rather than depending on another person(s) deciding their case for them.

THREE: QUICKER RESOLUTION

The projected time to schedule a hearing can be a few days or a few weeks versus a few months for other dispute resolution options.  A most important consideration is the relations of the parties. Time is shortened when both parties are cooperative, which ultimately leads to a less expensive and more positive outcome.

FOUR: WIN/WIN RESULTS.

The mediation goals focus on the future and maintaining relationships with win/win results. This is contrary to competitive hard bargaining between both parties’ attorneys with one party losing.  Mediation can be a transformative approach as the process can shift the disputant’s attitudes allowing them to find solutions rather than remaining polarized.

Even if mediation does not resolve the dispute, it is an effective way of narrowing areas of dispute, allowing the parties to express feelings and enabling future proceedings to be more efficient and focused.

I believe that mediation should be considered for all types of disputes.  I feel that it is the most efficient means for resolving conflict.  In regards to real estate related disputes, the CAR purchase contract, and the residential lease require that mediation occur prior to proceeding to other dispute resolution options.  The mediation process may require some fortitude to risk transformative change, but this risk is well worth it for the possibility of peace in this world for the disputing parties.

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Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years.  She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO   63122. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in negotiation and mediation. Taki can be reached at beverlytaki@kw.com or 314.677.6366.  Her website is beverlytakistlouis.com. Her blog is realestatestlou.com.

 

 






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