Real estate disputes can arise from various issues including property boundaries, contract disagreements, landlord-tenant conflicts or issues with property conditions, among others. Resolving these disputes quickly and efficiently is in the best interest of all parties. If you can tamp down the heat prior to escalation, you can save yourself time and money by avoiding expensive litigation.  

Common Alternative Dispute Resolution Methods 

In residential and commercial real estate transactions, there can be plenty of areas to disagree on. Some are minor and can be negotiated away, but others can lead to greater tension. If a conflict arises between parties, there are a few alternative dispute resolution (ADR) methods to try prior to litigation. They include: 

  • Negotiation: This is seen as the least formal type of ADR and can be effective in situations where the disagreements are minor and both parties are willing to compromise. During negotiation, the parties discuss the issue and attempt to reach a mutual agreement without involving a formal third party.
  • Mediation: When mediation is used, a neutral third party (i.e., the mediator) helps disputing parties communicate and negotiate. You can think of it as a moderated negotiation. The mediator does not make decisions but rather facilitates the discussion. Mediation can be effective when parties need a nudge of assistance in communication and reaching a resolution. It’s often less adversarial and more collaborative than going to court.
  • Arbitration: Another ADR method is arbitration. Arbitration also involves a neutral third party (i.e., the arbitrator) who listens to both sides and makes a binding decision. The process is more formal than mediation and less formal than litigation. It can be useful when parties prefer a private and expedited resolution without going to court. Oftentimes, arbitration can be mandated by contract clauses.

 When these alternative dispute resolution methods don’t work, the issue often heads to court. If you have concerns that a potential real estate issue could bubble up or are in the midst of a dispute now, get in touch with a real estate attorney right away. Our team at the Law Offices of Alex D. Sirulnik, P.A. represents international and domestic clients with all of their real estate and business law needs. Contact us to schedule a free consultation.