California real estate professionals like you may sometimes get into disputes. Whether it is with a client or someone else, disputes are harrowing. Even professionals find these situations stressful.
There are different ways to handle disputes. Some methods are better suited to certain situations than others. Mediation and arbitration are two of these methods.
How do mediation and arbitration help save relations?
The Balance discusses mediation and arbitration for real estate. There are other methods of handling disputes as well, such as litigation. But litigation is often expensive and time-consuming. It involves all parties going to court. In the end, you may also end up burning bridges that could have come in handy in the future.
There are better ways to go about this that do not involve burning bridges. Many entrepreneurs like yourself prefer to maintain peace and relations. Arbitration and mediation are two ways of doing that. They both involve negotiations outside of court. This saves time and money.
Primary differences between mediation and arbitration
So what are the primary differences? With arbitration, an arbitrator hears evidence from all involved parties. From that, they make a decision on what you should do. Mediation is a more flexible process. It relies on all parties working together to come to a conclusion that everyone can accept. At the end, you walk away with a written agreement. But this agreement is not legally binding.
In other words, arbitration does not rely on the disputing parties as much as the arbitrator. In mediation, the parties share an equal amount of responsibility. The mediator is often there just to keep things running in a smooth way.