After a buyer and seller reach consensus on the purchase of a property through a fully executed purchase agreement, a property inspection occurs, an appraisal report is completed and the day of closing finally occurs and the new homeowners get the keys to their house and everyone lives happily ever after, right?

What happens when one of the parties doesn’t hold up their end of the deal or issues with the home arise after the closing of the property? If the parties used a REALTOR® member of the Greater Lansing Association of REALTORS®, they have the added benefit of mediation services through the Association. During the purchase of a property, buyers and sellers agree in writing to submit all disputes arising from the transaction to mediation with the Greater Lansing Association of REALTORS®.

Mediation is a means of resolving disputes out of court that arise during or after the completion of a real estate transaction. This process helps to settle the differences between buyers and sellers. Working toward dispute resolution through mediation can improve understanding between real estate professionals and their clients, and provide an alternative to burdensome and costly legal procedures.

Dispute resolution programs, such as mediation through the Greater Lansing Association of REALTORS®, are important today as parties and the court system alike try to take cases out of the traditional legal system and solve disputes quickly and cost-efficiently. Mediation is a serious effort to design workable and fair alternatives to traditional civil litigation. A mediator is a trained, impartial third-party, whose only function is to help the disputing parties reach a written mediation settlement agreement.

While the agreement to submit disputes to mediation is binding when signed, the parties retain their right to pursue other legal remedies if mediation is unsuccessful. Parties are not bound to agreements reached during the mediation conference unless they sign a written mediation settlement agreement. If the mediation is successful the parties sign a written mediation settlement agreement by which they are both legally bound by its terms and cannot subsequently arbitrate or litigate the now-resolved dispute except to enforce the agreement.

If the mediation is unsuccessful, sellers and buyers may then proceed with arbitration or litigation.

With few exceptions, almost any real estate dispute can be mediated under the program. Exceptions include 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®.

If a consumer, either a home buyer or a home seller has an issue with their REALTOR®, they can file a grievance complaint or arbitration request with the Greater Lansing Association of REALTORS®. A committee of third party volunteers would review the case to determine if the REALTOR® violated the REALTOR® Code of Ethics or whether the issues are arbitrable under the Code of Ethics and Standards of Practice of the National Association of REALTORS®. If it is determined there was a violation, the case will 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 the Greater Lansing Association of REALTORS® or visit www.lansingrealestate.com for more information.