Mediation, arbitration and beyond
Standard real estate contracts require buyers and sellers who pursue disputes to take them to mediation, said June Barlow, vice president and general counsel of the California Assn. of Realtors.
“In meditation, you have a third party, a neutral person who helps the parties themselves come to an agreement,” she said.
For the record:
12:00 a.m. Dec. 10, 2005 For The Record
Los Angeles Times Saturday December 10, 2005 Home Edition Main News Part A Page 2 National Desk 3 inches; 129 words Type of Material: Correction
Real Estate disputes -- An article in Sunday’s Real Estate section about the use of mediation and arbitration to resolve disputes between buyers and sellers said the standard California Assn. of Realtors sales contract required home buyers and sellers who pursued disputes to take them to mediation. It failed to mention that any matters within the jurisdiction of a Probate, Small Claims or Bankruptcy court are excluded from mediation. The article also said that those who bypassed arbitration could hire a lawyer to take their claim to the appropriate court or, if the dispute was for less than $5,000, they could pursue it themselves in Small Claims Court. A dispute of any amount can be pursued in Small Claims Court; however, the most that can be awarded is $5,000.
For The Record
Los Angeles Times Sunday December 11, 2005 Home Edition Real Estate Part K Page 6 Features Desk 3 inches; 116 words Type of Material: Correction
Mediation -- A Dec. 4 article titled “Mediation, Arbitration and Beyond” stated that the standard California Assn. of Realtors sales contract requires home buyers and sellers who pursue disputes to take them to mediation. It failed to mention that excluded from mediation are any matters within the jurisdiction of a Probate, Small Claims or Bankruptcy court. The article also stated that those who bypass arbitration can hire a lawyer to take their claim to the appropriate court or, if the dispute is for less than $5,000, they can pursue it themselves in Small Claims Court. A dispute of any amount can be pursued in Small Claims Court; however, the most that can be awarded is $5,000.
Either side can initiate the mediation. Organizations offering such services include local chambers of commerce, the Los Angeles County Bar Assn. and the Los Angeles City Attorney’s Dispute Resolution Program.
The goal, Barlow said, is to resolve the problem “in a way that makes both parties feel good.”
If mediation fails to settle the conflict, some buyers and sellers can take the matter to arbitration. This is also in the standard contract, Barlow said, but both parties have to agree to it in advance by initialing that clause.
When buyers and sellers resort to arbitration, they give up their right to a jury trial, she said. Typically, both parties must agree on an arbitrator selected from such services as the American Arbitration Assn. or the organization called JAMS. The arbitrator settles the dispute.
Those who bypass arbitration can hire a lawyer to take their claim to the appropriate court or, if the dispute is for less than $5,000, they can pursue it themselves in Small Claims Court.
