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What are mediation and arbitration for real estate disputes?

Commercial real estate transactions are often very costly matters. Both sides of the matter have to ensure they are doing everything in accordance with the contract that is signed by them. When there are disputes or disagreements, finding a resolution becomes a priority.

For some disputes, using arbitration or mediation can help to come up with a solution faster and for a lower cost than going through court. If you are in a position where you need to come up with a resolution for a commercial real estate dispute, you should ensure you fully understand what's possible with arbitration and mediation.

What is arbitration?

Arbitration involves presenting your case to the arbitrator or arbitration board. This person or persons will listen to both sides and come up with a solution for the matter. In binding arbitration, you are bound by what's decided. This isn't the case if the matter is handled through nonbinding arbitration. The type of process should be decided before it is heard.

What is mediation?

During mediation, you and the other side work together to determine what is going to happen. This negotiating process is overseen by a mediator who works to keep everything on topic and the matter moving forward. If you and the other party can't come to a mutual agreement, you can have the case heard in court.

In arbitration and mediation, you can have your attorney present. This is a good idea, so you have someone to stand up for your interests. You might find it easier to work through everything with your lawyer present.

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