how does mediation work in real estate

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Most realestate contracts now include terms that require mediation occur before the parties can initiate an action in court. Before bringing suit or before proceeding to arbitration,the buyer and the seller will agree upon a mediator to help them reach a settlement.

People also ask


  • Can a real estate contract be settled by mediation?

  • In fact, many real estate contracts, including those published by C.A.R., now require the parties to mediate many disputes that might arise between them. Mediation is the first phase between the parties. Arbitration is an opt-in or opt-out, where the parties agree, approve, or deny.

  • How does mediation work?

  • In mediation, the parties to the dispute are assisted by a neutral third person called a mediator. The mediator is not empowered to impose a decision on the parties; instead the mediator facilitates discussions and negotiation between the parties with the goal of assisting them in reaching a mutually acceptable settlement of their dispute.

  • What happens if mediation does not resolve a dispute?

  • While mediation is highly successful, in the event mediation does not resolve a dispute, the parties are free to pursue any other system of dispute resolution available to them. For example, if the parties entered into an arbitration agreement, they could pursue arbitration.

  • What is the difference between arbitration and mediation?

  • Arbitration is an opt-in or opt-out, where the parties agree, approve, or deny. Mediation is the term used to describe a relatively informal form of dispute resolution that occurs outside of the court system. In mediation, the parties to the dispute are assisted by a neutral third person called a mediator.

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