Arbitration & Mediation
Arbitration and mediation are methods of dispute resolution often preferred to traditional litigation as they are less expensive and time consuming. With arbitration and mediation, private matters stay that way. In Las Vegas, dispute discussions occur before a decision-maker instead of a public court of law.
With arbitration, parties in a dispute try to come to an agreement outside of court. The parties designate an arbitrator to preside over their discussion. The arbitrator decides the outcome of the case based upon the evidence presented, acting as both judge and jury. Parties typically agree to abide by the rules of the American Arbitration Association or a similar organization.
There are two types of real estate arbitration: binding and non-binding.
- Binding arbitration means the winning party can take the losing party to court and obtain a judgment upon the arbitrator’s award if they do not abide by the terms of the arbitration decision.
- Non-binding arbitration means that parties are not obligated to comply with the arbitrator’s decision,and may continue to pursue the matter in a court of law.
In real estate mediation a third-party mediator facilitates a discussion between the parties to reach a consensus and, ultimately, a mutually agreed upon resolution. Mediation is a less formal forum than arbitration; the mediator does not actively participate in the decision-making process, but simply tries to persuade the parties to agree. As mediation does not bind the parties to a decision, if either party is not satisfied with the result of their discussions, the matter may progress to civil action. In many cases, mediation is a procedure required by contract before any litigation may be commenced. Whether it is required or voluntary, mediation can be very beneficial if a mutual resolution is at all possible.