Mediation
Mediation is a voluntary dispute resolution process where a neutral third party helps buyers, sellers, or other parties involved in a real estate transaction reach a mutually acceptable agreement. The mediator facilitates communication but doesn't impose a binding decision unless both parties agree.
Example
“The buyer and seller agreed to mediation when they couldn't resolve the dispute over who should pay for the damaged hardwood floors discovered after closing.”
Memory Tip
MEDIATION puts a neutral person in the MIDDLE of your dispute - think of a referee mediating between arguing players.
Why It Matters
Mediation offers a faster, less expensive alternative to litigation for resolving real estate disputes while preserving relationships between parties. Many real estate contracts require mediation before parties can pursue legal action.
Common Misconception
Mediation results are not automatically binding like arbitration—parties must voluntarily agree to the proposed resolution for it to be enforceable.
In Practice
When buyers and sellers disagree about who should pay for $8,000 in roof repairs discovered during inspection, they attend mediation where they agree to split the cost rather than risk losing the deal entirely. Both parties sign the mediated agreement making it binding.
Etymology
From Latin 'mediatus' (placed in the middle), describing a process where a neutral person stands between disputing parties to help them reach agreement without going to court.
Common Misspellings
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