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Staying Out of Court: Mediation and Arbitration for Real Estate Disputes

Posted by Melvin Monachan | Jul 15, 2019 | 0 Comments

There are a number of issues that fall under the realm of real estate disputes. They come in all shapes and sizes, broadly ranging from earnest money disputes to misrepresentation about the condition of a property. In search of resolution, many clients' instinctive reaction is to turn to the courts.

In recent years, American society has seen a drastic increase in litigation across the board. But what many realize once taking the plunge is that lawsuits are oftentimes the source of immense emotional and financial strain among participants, leaving them in worse shape than they were before heading to court. To curtail client dissatisfaction in real estate disputes, it's important clients realize that there are other alternatives to litigation for resolution.


Mediation is one such alternative that is swiftly growing in popularity. Mediation is an informal process in which a third party (a mediator) helps parties reach a settlement to their dispute by opening lines of communication, providing an objective evaluation of the case, identifying needs, and finding solutions to these needs. The ultimate goal of mediation sessions is for the mediator to assist the parties in achieving a mutually agreeable resolution. Clients have found that this option has drastically reduced the amount of time and money it takes to resolve their real estate disputes.


Arbitration is another effective alternative to litigation for dispute resolution. It's similar to mediation in some ways - there's a third party involved, it's an informal method, and the ultimate goal is to make a decision that satisfies both parties. But there are some major differences. For one, arbitration is an adversarial process. This means that both parties will be responsible for submitting evidence to a neutral third party (known as an arbitrator), much like the litigation process. Another notable difference is that an arbitrator has the authority to make a binding decision that can't be appealed by either party. Arbitration is a great option for people who are uneasy about the otherwise less structured nature of mediation sessions but also want to avoid the costs and time-consuming process of litigation.

Generally, mediation and arbitration sessions are conducted within a few months of the dispute arising. Mediation sessions usually last a few hours before achieving mutual agreement, while arbitration tends to be a bit more lengthy. Regardless, both almost always end up costing much less than litigation.

When Are Alternative Dispute Resolution Options Inappropriate?

If one party accuses the other of criminal conduct, then alternative dispute resolution is not recommended. Also, if the dispute involves elaborate property rights issues or other complex legalities, it would most likely be best to utilize litigation.

Contact Real Estate Attorney Melvin Monachan Today

Whether you want to pursue mediation, arbitration, or litigation to solve your real estate dispute, the Law Offices of Melvin Monachan, PLLC, has the tools to help you. We've aided people tied up in complex disputes overcome their issues with our expertise. Let us help you find a viable solution to your issues. Contact us by filling out an online contact form or give us a call at (516) 714-5763.

About the Author

Melvin Monachan

Melvin Monachan is the founder of The Law Office of Melvin Monachan, PLLC, a full service, real estate law firm representing individuals, investors and corporate entities in all aspects of real estate law. On the transactional side, Melvin represents purchasers and...


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