When it comes to buying or selling real estate, it is important for both parties to be on the same page. That`s why contracts often include a mediation clause, which requires the parties involved to attempt to resolve any disputes through mediation before taking the matter to court.
So, what exactly does a mediation clause entail? Essentially, it states that if a disagreement arises during the process of buying or selling a property, both parties agree to try to resolve the issue through mediation first. Mediation is a process in which a neutral third party helps facilitate a resolution between the two parties. This can be a quicker, less expensive, and less stressful alternative to going to court.
There are several advantages to including a mediation clause in a real estate contract. First and foremost, it provides a way to resolve disputes that is less adversarial than going to court. This can help maintain a positive relationship between the parties involved, which can be important if they need to work together in the future.
Mediation can also be faster and less expensive than going to court. In some cases, a dispute can be resolved in just a few mediation sessions, while going to court can take months or even years. This can save both parties a lot of time and money.
Another advantage of including a mediation clause in a real estate contract is that it can help ensure that both parties are on the same page from the beginning. By agreeing to attempt mediation before going to court, both parties are acknowledging that they are willing to work together to resolve any issues that may arise. This can be reassuring for both parties, as it can help build trust and confidence in the transaction.
So, if you are buying or selling real estate, make sure your contract includes a mediation clause. It can help protect your interests, save you time and money, and ensure that the transaction proceeds smoothly.