PRACTICE AREAS: Real Estate
Industry Specific Solutions

As the use of mediation has grown throughout society, its use in real estate matters has exploded. This is partially due to the incorporation of a mediation provision in the California Association of Realtor’s standard Deposit Receipt And Purchase Agreement. Other publishers of real estate forms have adopted similar mediation provisions. Additionally, legislation passed in 1993 has mandated that disputes concerning common interest developments (condominiums, co-ops, etc.) must first be submitted to mediation before litigation can be commenced (Civil Code section 1354(b)).

Real estate disputes differ from other disputes in that they usually involve more than two parties. For example, a dispute arising from the sale of property may involve multiple parties: the buyer, the seller, buyer’s real estate broker, seller’s real estate broker, the pest control inspector, the property inspector, the title or escrow company, and perhaps other inspectors or contractors. Real estate disputes also typically involve the attorneys for the disputants in addition to the parties.

Traditionally, real estate industry disputes rely on negotiation for solutions. If negotiation fails, litigation is often initiated. Mediation involves the skillful intervention of a third-party professional, like the Institute for Conflict Management’s numerous real estate panelists, to help resolve disputes that arise between two or more parties.