Can ADR approaches work for real estate disputes?

On Behalf of | Jun 26, 2024 | Mediation |

Alternative Dispute Resolution (ADR) approaches allow those who are involved in disputes to potentially reach a resolution to their issues while avoiding the costs, stress and “winner-take-all” risk of litigation. When utilized thoughtfully in informed and supported ways, ADR approaches can be highly effective in resolving a variety of concerns, including real estate disputes. 

Ultimately, these methods – including mediation and arbitration – offer several advantages over traditional litigation, making them a viable option for many parties involved in real estate conflicts.

Why ADR is worth considering

There are numerous reasons why it may be to your benefit to consider an ADR approach if you’re navigating a real estate dispute. Litigation is the best approach under certain circumstances, but many disputes can be resolved more amicably. 

For example, ADR allows those involved to have more control over the process and outcome than they would in a litigation scenario. In mediation, the parties work collaboratively to reach a solution that works for both sides. In arbitration, while the arbitrator makes the final decision, the parties can agree on the rules and procedures to be followed, making the process more flexible than traditional litigation.

Additionally, ADR methods are generally more cost-effective than litigation. Court cases can be expensive due to legal fees, court costs and prolonged timelines. Mediation and arbitration typically involve fewer procedural steps, resulting in lower costs for the parties.

Real estate disputes resolved through ADR are often settled more quickly than those that go through the court system. Litigation can take months or even years, while mediation and arbitration can be scheduled and concluded in a matter of weeks or months.

ADR proceedings are private and confidential, unlike court cases which are public. This privacy can be particularly important in real estate disputes where sensitive financial or personal information might be involved.

Finally, real estate transactions often involve parties in ongoing relationships. ADR methods, especially mediation, are less adversarial than litigation and can help preserve and even improve these relationships by fostering cooperative problem-solving.

For all of these reasons and more, you may want to consider ADR before committing to a dispute resolution approach for your real estate matter, one way or the other.