Professionals who are committed to a high standard of conduct will occasionally have honest business disputes. In certain circumstances, these disputes are handled through an extensive, time consuming arbitration hearing in front of a panel who decides the final resolution. In these situations, there is usually a winner and a loser – rarely two winners.
However, there is an alternative that not only is more amicable, but allows the involved individuals to voluntarily resolve a business dispute that is mutually agreeable and is quicker and easier.
What is mediation... simply, put, mediation is a structured negotiation facilitated by a neutral third person called a “mediation officer”. The mediation officer assists the parties in a dispute to arrive at a mutually agreeable settlement, but does not have the authority to impose a decision on the parties.
By choosing to mediate rather than arbitrate, disputes are resolved in a more informal, relaxed and agreeable environment. Mediation involves sitting around a table discussing the dispute rather than facing each other across the table in front of a panel. In addition, the mediation process involves fewer people and is less demanding upon persons involved. Ultimately, parties to a successful mediation can leave the proceeding satisfied knowing they took part in the decision process and agreed to a reasonable resolution. In fact, the success rate of mediation programs range from 50 – 90 percent of all disputes and everyone walks away a winner.
The key to a successful mediation is a competent and caring mediation officer. A mediator must be intelligent, informed and highly knowledgeable about real estate practices as well as articulate, courteous and diplomatic. They must have a reputation for integrity and fairness beyond reproach and know the principles of due process and procuring cause. Mediation officers cannot be related by blood or marriage to any of the parties, be a business associate of any of the parties, or be a party in or witness to any other pending case that involves these agents. RealSource has professionally trained mediation officers available.
Mediation is an orderly series of events established by a mediator and agreed to by the parties. The typical process includes:
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Parites present facts.
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Parties express feelings.
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Mediator encourages discussion.
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Mediator may talk one-on-one to parties.
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Offers are invited from the parties.
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If parties are not progressing, the mediator may offer a resolution.
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Often success results when parties face up to the possibilites for resolution through mediation rather than arbitration.
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Success often results, when parties are presented with the consequences or arbitration.
Mediation is purely voluntary. No one has to use it, but that is what makes it attractive. It can be quicker, easier and more amicable than arbitration and still resolve a business dispute in which everyone involved wins. A REALTOR® can withdraw from the mediation at any time before the parties reach agreement. However, once the parties have signed an agreement, the matter cannot be the subject of a later arbitration.
How is mediation initiated…..a request for arbitration, by the Principal (Designated REALTOR®) of the office, must first be filed. The request will then be sent to the Grievance Committee for a determination of whether the dispute is properly arbitrable. If the Grievance Committee determines that the dispute is arbitrable, the parties will be notified and will be offered mediation to settle the dispute.