Real estate transactions often involve large sums of money. In some cases, one party or another may feel that some wrong occurred somewhere along the line and this may eventually result in a dispute.
Fortunately for everyone, disputes do not need to get solved in a court through litigation. Other, alternative methods of dispute resolution exist that can provide just as much support and aid to the parties involved.
Arbitrators vs. judges
FINRA discusses both mediation and arbitration as options to avoid court. Arbitration in particular serves as a favorite for many real estate owners.
An arbitrator serves a role similar to that of a judge. They listen to all parties present their sides of an argument. Then, they make a ruling decision based on what they heard. This ruling decision holds legally binding power, meaning all parties must oblige.
However, it holds the benefit of avoiding court, meaning all parties save time and money. On top of that, they do not have to worry about their personal business being leaked to the public via public court records.
How mediation works
Mediation offers an option for those who feel like dealing with their issue in a more hands-on way. The mediator cannot make a legal ruling like an arbitrator or judge. They will oversee all discussions about how to resolve the issue, though.
They can help parties talk through their difficulties, as well as offer unique opinions and advice from their neutral, third-party perspective.
In either option, it can allow all parties to maintain their business relations with one another as well, which serves as an invaluable benefit for many.
