Mediation for Real Estate Partition Disputes

Partition of real estate means dividing common interests in the property. This can happen voluntarily, or the court can determine the outcome if the parties cannot reach an agreement. The main types of partition in real estate are partition by sale (selling the property and dividing the proceeds among co-owners) and partition in kind (physically dividing the property among co-owners). However, if co-owners cannot agree, going to court may not be the only option. One alternative to litigation is mediation. Mediation offers a structured, collaborative approach that can help resolve these disputes in a short time and at a cheaper cost. Below is more on mediating real estate partition disputes.

What is Mediation in Real Estate Partitioning?

Mediation is an alternative dispute resolution (ADR) method of resolving disputes, meaning this option does not involve going to court. Mediation can help resolve different disputes, including real estate partition disputes. Mediation involves the intervention of a neutral third party (the mediator). In a real estate partition dispute, the mediator’s role includes identifying each co-owners underlying needs and goals, offering knowledge about real estate laws and partition options, facilitating negotiations, and drafting a legally sound agreement if the parties reach an agreement. The mediator is not a judge and cannot impose a decision on the parties.

It is vital to note that the mediation is not inherently binding once parties reach an agreement. An agreement is only binding if the parties decide to enter into a legally binding contract or settlement agreement based on the negotiated terms. In other words, mediation is non-binding unless formalized. Mediation becomes binding only after the agreed terms are documented in a settlement agreement or contract and signed by the parties. Once formalization has happened, if a party fails to comply with the agreement, the other party(ies) can enforce it in court.

Benefits of Mediation

Mediation offers several advantages over going to court, including the following;

• Time-Saving: It can take months or even years to resolve a case in court. On the other hand, mediation can resolve disputes in just a few weeks.
• Cost-Effective: Mediation usually costs less than a court battle. It saves money on court expenses and legal fees.
• Control Over Outcome: Unlike a court case where parties have to wait on a judge to make the final ruling, mediation ensures parties have significant control over the outcome.
• Perseveration of Relationships: Mediation encourages parties to collaborate and reach an agreement, reducing hostility among involved parties. This can help preserve relationships.
• Flexibility: With mediation, parties can come up with creative agreements.
• Confidentiality: Mediation discussions are private, unlike court cases.

Limitations of Mediation

While mediation can be highly effective, it is not a suitable option for all cases. The following are some situations where mediation might not be appropriate;

• The case involves fraud or bad-faith actions by one of the parties
• There is a significant power imbalance between the parties
• The dispute involves complex legal matters

In such cases, court intervention may be necessary.

Contact Us for Legal Help

If you are dealing with a real estate partition dispute, contact our qualified San Francisco real estate attorneys at SAC Attorneys LLP for legal guidance.