What is mediation in real estate?

What is mediation in real estate?


Mediation in real estate is a process that involves the intervention of a neutral third party to help resolve conflicts or disputes between parties involved in a real estate transaction. It is an alternative to litigation and can be a cost-effective and efficient way to resolve disagreements. In this article, we will explore the concept of mediation in real estate, its benefits, and how it works.

Understanding Mediation in Real Estate

Mediation is a voluntary and confidential process that allows parties involved in a real estate transaction to work towards a mutually acceptable resolution with the help of a trained mediator. The mediator acts as a facilitator, guiding the parties through the negotiation process and encouraging open communication.

Benefits of Mediation in Real Estate: Mediation offers several advantages over traditional litigation. Firstly, it allows the parties to maintain control over the outcome of the dispute, as they actively participate in the decision-making process. It also provides a more flexible and informal setting compared to a courtroom, which can help foster better communication and understanding between the parties. Additionally, mediation is often faster and less expensive than going to court, as it avoids lengthy legal proceedings.

The Mediation Process

The mediation process typically begins with the selection of a mediator who is experienced in real estate matters. The mediator should be neutral and impartial, ensuring that all parties are treated fairly. Once the mediator is chosen, a mediation session is scheduled.

During the mediation session, all parties involved in the dispute, including buyers, sellers, real estate agents, and attorneys, if applicable, gather to discuss the issues at hand. The mediator sets the ground rules for the session and ensures that each party has an opportunity to express their concerns and interests.

The mediator’s role is to facilitate communication between the parties, helping them identify common ground and explore potential solutions. The mediator does not make decisions or impose solutions but assists the parties in reaching a mutually acceptable agreement. The mediator may use various techniques, such as active listening, reframing issues, and brainstorming, to guide the negotiation process.

If an agreement is reached, it is typically documented in a written agreement or settlement agreement. This agreement is binding and enforceable, providing a clear resolution to the dispute. However, if the parties are unable to reach an agreement, they can still pursue other legal options, such as litigation.


Mediation in real estate is a valuable tool for resolving conflicts and disputes in a non-adversarial manner. It offers numerous benefits, including cost-effectiveness, efficiency, and the ability for parties to maintain control over the outcome. By working with a trained mediator, individuals involved in a real estate transaction can find mutually acceptable solutions and avoid the time and expense associated with litigation.


– National Association of Realtors: www.nar.realtor
– American Bar Association: www.americanbar.org