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Real Estate Conflict Happens! Mediation Can Cure it!

By
Real Estate Agent with United Real Estate Dallas TREC# 0544069

Mediation is an effective way to resolve real estate related disputes. 

Wearing a mediator hat, I have mediated disagreements that  run the gamut, from two sided disputes to complex issues involving multiple parties and legal counsel.

  • Homeowner association disputes are legendary, with homeowners accused of violating by-laws and HOAs accused of overstepping their bounds.
  • Neighbors are frequently at odds. One neighbor constantly drives on the adjacent driveway of the next door neighbor. A fence is built over a property line and the neighbor refuses to move the fence.  A neighbor's tree is trimmed, or cut down, by an adjacent neighbor, without permission. Neighbors and/or builders violate neighborhood covenants or building codes. Let your imagination run wild. I know you can think of many more types of disagreements involving neighbors and neighborhoods.
  • Buyer and Buyer's Agent take liberties during the option period and damage the Seller's property. The Buyer exercises the unrestricted right to terminate. The Seller refuses to release the earnest money to the Buyer due to the anticipated cost to repair damage to their property.
  • Buyers make a final walk though their dream home before the property is vacated.  After closing, they discover that an area rug concealed significant undisclosed damage to the hardwood floor.
  • The Buyer discovers after closing that there is an issue not disclosed by the Seller and not discovered during the inspection.

  • The Buyer is purchasing a triplex.  At the closing table, the Buyer's agent receives a call that all 3 HVAC systems have just gone out.

Mediation skills are useful in every day life and invaluable tools for Realtors.  

The mediation process is designed to be non-adversarial. It is important to note that the mediator, a third party neutral, does not decide the outcome of a dispute. Through mediator facilitated negotiation, discussion, and brain storming, the disputants are empowered to seek resolution acceptable to all parties. Successful mediation of any conflict depends upon the participants' willingness to settle their differences with a solution that is acceptable to all parties involved in the dispute. Disputes are frequently resolved in one session, saving the disputants from an emotionally draining and costly lawsuit. 

In Texas, we are fortunate that Buyers and Sellers may agree to settle any transaction related disputes through the mediation process.

Trained mediators come from many walks of life. Texas mediators can be located by contacting the Texas Mediator Credentialing Association and the Texas Association of Mediators. All parties to a dispute need to agree on the selected mediator.  Look for a mediator with advanced experience and training. 

Additional Information

 

Posted by

 Sharon Parisi,  Realtor®

Helping Dallas area buyers and sellers meet their real estate needs

214-450-3742

Sharon@sharonparisi.com

United Real Estate

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

It seems like it would be a good way to go. I fortunately have not had anything come up after closing that needed addressing to this extent.

May 14, 2012 04:58 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Chuck, your comment was the catalyst for me to make clear to readers that I served as the mediator for the disputes mentioned. Thanks for your comment. I'm glad to hear that you have not had any disputes come up!

May 14, 2012 05:36 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

So far I've escaped mediation and I hope to stay the course.  I realize mediation can, does and probably will happen to us of us at anytime for various things that are out of our control.  When and if my time rolls around I'm glad to know there is someone there to wear the mediators hat!

 

May 14, 2012 09:49 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

John, I have faith that you will stay the course and escape the mediation process!

May 14, 2012 12:04 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Sharon,

Well said.  Mediation definitely is the best way to try and resolve a dispute.  Sometimes just saying I'm sorry could solve the problem.

May 16, 2012 11:26 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Richard, you are right, an apology goes a long way.

May 17, 2012 03:43 PM
ASHEVILLE REALTY REFERRAL RESOURCE 828-776-0779
REAL ESTATE REFERRAL NETWORK - Asheville, NC
CONTACT janeAnne365@gmail.com

Hi Sharon...

Here's a big SUGGEST for this post. I love the idea of a non-adversarial approach to resolving disputes...it seems as if we can lead the way to a better understanding of the power of civility...and we sure could use a lot more of that during any time when people take sides and are n to listening to understand the others.

May 18, 2012 03:55 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

janeAnne, thanks for your suggest!

May 18, 2012 04:35 AM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Inevitably these things do happen. Mediation (as stated above) is a good vehicle to have everyone resolve the issue and move forward.

May 19, 2012 09:47 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Robert, you are right, mediation is about finding a way to move forward in a way that works for all parties.

May 19, 2012 01:20 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Sharon - in California, our purchase agreement states that mediation is the first step in conflict or dispute resolution.   Arbitration comes into play if both parties agree to this clause(with some exceptions).   It's best to resolve it amicably.  Good post.   

May 26, 2012 01:12 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Many businesses are realizing that mediation is a good first step. California Realtors are fortunate to have mediation as the first step in resolving conflict.

May 26, 2012 03:03 PM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Sharon:

I believe in mediation, and have seen it locally put out several fires, that could of escalated into arbitration. I bet you are kept busy. It seem when the market got slow, that is when real estate agents, buyer and sellers started getting litigious.

May 26, 2012 10:58 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

The good news is that lending an ear to both sides of a conflict can generally keep people out of court, or keep them from returning to court.

May 27, 2012 05:11 AM
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging Consultations that Sell Portland Homes"

Hi Sharon ~ Real estate transactions can certainly lead to disputes and disagreements, but I'm sure with your wise counsel all parties reached agreement.  It seems that more often lately, we're seeing mediation as the first suggested method of resolution.

Jun 02, 2012 04:31 PM