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Resolution Management FAQ
1. What is mediation?
Mediation is a cost effective alternative to litigation. In mediation two parties attend a conference facilitated by a trained neutral third party (the mediator) to work out a resolution to their issue. Mediation is:
- Less expensive than litigation. Typically the party requesting mediation pays a non-refundable administrative fee and the parties share the mediator fee. The cost to each party ranges from $250 - $550 for a three hour conference.
- Faster than litigation. Typically a mediation conference can be scheduled less than 30 days from the initial request.
- Less confrontational than litigation. In mediation, the parties are assisted by the mediation to reach a conclusion that is satisfactory to both.
2. Who are the mediators?
Mediators are individuals who have taken a certified mediator training class. Mediators in the Home Sellers/Home Buyers Dispute Resolution System (DRS) are REALTORS ®, Lawyers and other individuals with experience in real estate transactions. Each mediator must supply proof of training and a resume supporting their experience in real estate matters.
3. Won’t encouraging my client to elect mediation raise a red flag?
Mediation is like any other clause in the agreement of sale. There are choices to be made. Your role as an advocate for your client is to explain the choice and allow your client to make the final decision. Choosing mediation does not mean that a problem exists or will come up in the course of the transaction. Choosing mediation simply means that the parties have agreed to try mediation as an alternative to costly, time consuming, and often confrontational litigation.
4. What if my client does not want to give up their right to litigation?
The right to litigation is not relinquished just because the parties’ elect mediation. If successful, a resolution in mediation is binding on the parties. However, if unsuccessful, the parties are free to pursue any legal means available to them.
5. Where can the buyer or seller get more information on mediation?
Mediation is explained on the back of page 7 of the Agreement of Sale (A/S-R). There is also a tri-fold brochure available from the Association or you can encourage your client to call the association if they have questions?
6. How does a buyer or seller initiate mediation? Does it matter who makes the request?
Mediation can be initiated by either party. The forms can be requested by phone call to the Association 610-560-4800 or downloaded from the Association website at www.suburbanwestrealtors.com under Resolution Management/Buyer Seller Dispute.
7. Who can file a request for arbitration?
Real Estate commissions can only be paid by brokers; therefore, the request (and a response) must be filed by the broker. The REALTOR ® with a financial interest in the outcome has the right to participate in the hearing from beginning to end.
8. When can a request for arbitration be filed?
A request for arbitration must be filed within one hundred and eighty (180) days from the close of the transaction or within one hundred and eighty (180) days of when the requestor could have known the transaction close in the exercise of reasonable diligence.
9. How does a REALTOR ® initiate a request for arbitration?
Forms can be requested by phone call to the Association 610-560-4800 or downloaded from the Association website at www.suburbanwestrealtors.com under Resolution Management/Professional Standards.
10. Are there alternatives to arbitration?
Yes. Mediation is available as a first step alternative to Arbitration. If both parties agree, mediation can be conducted with the help of a professional standards committee member specifically trained in mediation.
11. Who can file an ethics complaint?
Anyone (member of the public or REALTOR ®) who can provide clear, strong and convincing proof to a hearing panel may file an ethics complaint.
12. When can an ethics complaint be filed?
An ethics complaint must be filed within one hundred and eighty (180) days of the date when the offense occurred or when the facts relating to it could have been known by the complainant in the exercise of reasonable diligence.
13. How does a member of the public or a REALTOR ® file an ethics complaint?
Forms can be requested by phone call to the Association 610-560-4800 or downloaded from the Association website at www.suburbanwestrealtors.com under Resolution Management/Professional Standards.
14. Are there alternatives to filing an ethics complaint?
Yes. The Association offers the Ombudsman program to members of the public and REALTORS ® who are having difficulty with a REALTOR ®. The Ombudsman program allows for a member of Association staff to facilitate communication between the parties when appropriate. In certain circumstances, the Ombudsman program may be utilized anonymously. That is, only the Ombudsman will know the identity of the person making the complaint.
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