Buying or selling a home is often an emotional and stressful process, not to mention one of the most expensive investments a person will ever make. With so much at stake, it’s no surprise that problems can arise, even after closing.

However, if both parties are willing to cooperate, there may be a way to resolve issues amicably. Thankfully, if local buyers and sellers choose to work with a REALTOR^® member of The Greater Lansing Association of REALTORS® GLAR they have the benefit of mediation services through the Association. During the purchase process, both parties agree in writing to first submit all transactional disputes to mediation.

Dispute resolution programs, such as mediation through GLAR, are the preferred first step because in most circumstances, the dispute can be resolved more quickly and at a much lower cost than through litigation of any type.

Mediation is a process in which a neutral party – the mediator – helps buyers and sellers reach a settlement to their dispute by opening the lines of communication, identifying the parties’ needs, and then finding a workable and fair solution to address those needs.

There are many benefits to trying mediation over more involved and costly methods. In mediation, the focus is on each parties’ interests, it’s a much more informal process, and it can help maintain relationships that may otherwise grow hostile in a lengthy court case. Mediation is a relatively quick process -- it typically only takes one meeting to either achieve mutual agreement or decide that the dispute must escalate. And, unlike most court cases which are matters of public record, most mediations are completely confidential.

Almost any real estate dispute can be handled through mediation. Inspection and repair issues, earnest money disputes, and claims of misrepresentation about the condition of a property, appliances, or fixtures are all common examples of when this resolution method can be effective.

However, there are some exceptions. Disputes involving complex legal issues, alleged criminal conduct, alleged violations of state license laws or regulations, and alleged violations of the Code of Ethics and Standards of Practice of the National Association of REALTORS^® (NAR) are all situations in which mediation would not be appropriate. In cases like these, arbitration or litigation would likely be necessary.

If mediation is successful, the parties sign a written mediation settlement agreement by which they are legally bound and cannot subsequently arbitrate or litigate the dispute except to enforce the agreement. If mediation is unsuccessful, the parties may proceed with arbitration or litigation.

If a buyer or seller has an issue with their REALTOR^®, he/she can file a grievance complaint or arbitration request with GLAR. A committee of third-party volunteers would review the case to determine if the REALTOR^® violated the Code of Ethics or whether the issues are arbitrable under the NAR Code of Ethics and Standards of Practice. If it is determined there may have been a violation, the case would be heard in front of a professional standards panel.

If you have any questions about filing mediation against a buyer or seller or filing a grievance against a REALTOR^®, please contact GLAR or visit www.lansingrealestate.com for more information.