Real estate can get ugly. Contracts are violated, bills sit overdue, and information gets withheld. Most people think their only way out is through a nasty lawsuit. But fear not – there are alternatives to court! Today, we’ll discuss a fast, flexible, and effective option: real estate mediation.
But first, let’s dive into a few reasons why you might want to try some alternatives before filing that lawsuit.
Why not immediately go to court?
When someone wrongs us, it’s almost a reflex to ‘take them to court.’ We live in a lawsuit-happy society, and knockdown, winner-take-all battles in front of a judge are quite common. However, these conflicts are often expensive, lengthy, and extremely stressful.
You will likely need a hefty retainer to enlist the services of an attorney, and will pay additional costs if the case goes to trial. Quality attorneys often charge hundreds of dollars per hour, and other court fees add up fast. In the right situation, a great real estate attorney can be a lifesaver. But make sure you understand the costs!
The legal system can also move very slowly. While the folks involved are very hard workers (and generally do a great job), they deal with a huge volume of cases. It can take months to have your lawsuit decided.
Finally, there is a great deal of uncertainty and stress in a courtroom setting. When combined with the time and cost involved, it makes sense to investigate your other options.
What is Real Estate Mediation?
Real estate mediation is a collaborative process. Rather than fighting to determine a ‘winner,’ the parties sit down and try to create a mutually beneficial solution.
Having an experienced, neutral mediator present at these discussions is crucial. When you enlist the help of a quality professional, they will be highly trained in several skills, including negotiation, solution generation, and conflict resolution.
This person will guide the process, and help both sides explore both the root problems and potential solutions. The sessions may include break-outs, brainstorming, and offers delivered back and forth.
What Makes Real Estate Mediation Different than Court?
There are several key elements in this process. First, neither party is obligated to agree to any proposed solutions. So, if the mediation is not bearing fruit, you don’t have to accept the outcome.
Secondly, the options you generate can be much more creative. Most court judgments tend to center around money. While financial compensation is better than nothing, it often misses the heart of the matter. Real estate is complicated. Generally there are multiple issues at play, and a creative solution can leave both parties much happier.
A quality mediator will focus on interests rather than positions. By figuring out each side’s top concerns, they can often uncover a satisfactory solution for everyone. In many cases, this is much better than an all-or-nothing approach.
Third, it is not the mediator’s job to determine a ‘winner.’ In most cases, they will be highly impartial, and primarily interested in breaking down barriers to solutions. They should not ‘push’ for a resolution, but should allow the parties to decide if any of the proposed options will work.
Cost and Speed
Real estate mediation often yields much faster results than court proceedings. Even if a mediation requires multiple sessions, you can often resolve your issue in matter of days.
Many conflict-resolution services available at low- or no- cost. However, even if you have to pay for a quality mediator, it is likely that you will save a lot of money.
So before you file that lawsuit, consider real estate mediation to help work through your issues. You will thank yourself later.