Common Myths About Mediation Debunked

Mediation is an effective and often underutilized tool for resolving real estate disputes, but misconceptions about the process can lead to misunderstandings and hesitation. Here, we debunk some of the most common myths about mediation.

Myth #1: Mediation Is the Same as Litigation. Many people confuse mediation with litigation, assuming that it is a formal legal proceeding. In reality, mediation is an informal process where a neutral third party facilitates discussions to help disputing parties reach a mutually agreeable settlement. Unlike litigation, mediation does not involve a judge making a final decision and the parties are in control of the outcome.

Myth #2: Mediation Takes Too Long. Mediation is typically much faster than litigation. While lawsuits can take many months or years, most mediations can be scheduled quickly and are resolved in a single mediation session, depending on the complexity of the dispute.

Myth #3: Mediation Is Only for Minor Disputes. There is a misconception that mediation is only suitable for small disagreements. In fact, mediation can be used to resolve a wide range of real estate disputes, including high-stakes commission disputes, contractual disagreements, and complex buyer-seller conflicts. Even contentious issues can often be resolved efficiently and effectively through mediation.

Myth #4: Mediation Means Giving Up Your Legal Rights. Some worry that participating in mediation means they forfeit their legal rights. In fact, mediation is a non-binding process unless both parties voluntarily agree to a settlement. If mediation does not lead to a resolution, parties still have the option to pursue arbitration or litigation.

Myth #5: The Mediator Will Decide the Outcome. Unlike an arbitrator or judge, a mediator does not impose a decision on the parties. Instead, the mediator facilitates productive communication and helps parties explore possible solutions. The final agreement is entirely in the hands of the disputing parties.

Myth #6: Mediation Is Too Expensive. Mediation is often significantly less expensive than litigation. Court cases involve attorney fees, court costs, and prolonged expenses. Mediation, on the other hand, is generally a cost-effective alternative that reduces both financial and emotional strain.

Myth #7: Mediation Won’t Work if There’s a Lot of Conflict. Even in high-conflict situations, mediation can be an effective tool for resolution. Skilled mediators are trained to manage difficult conversations, de-escalate tensions, narrow the issues and guide parties toward productive solutions.

Mediation is a powerful tool for resolving real estate disputes efficiently and amicably. By understanding and dispelling these common myths, disputing parties can take advantage of the benefits mediation has to offer. Whether you are a buyer, seller, REALTOR®, landlord or tenant, mediation can provide a cost-effective and constructive path to resolving your dispute.

Discover a better way to overcome real estate disputes at the C.A.R. Real Estate Mediation Center for Consumers. Visit www.consumermediation.org or call (213) 739-8376 to learn how our mediators can facilitate your dispute resolution with expertise and care.

< Back to Overview