Any disagreement when dealing with property can lead to huge delays in scheduling and can result in enormous unplanned costs. It creates a feeling of uncertainty for everyone involved and unnecessary stress during what is already a complex and stressful process. But resolving property disputes using mediation can help to preserve relationships for all parties and reduce stress and worry.
What does a property dispute involve?
Property law encapsulates so many different tasks and requirements, and a dispute can range from issues, including:
- over the transfer and protection of property interests
- boundary arguments
- intellectual property matters
- arguments between tenants and landlords
- the death of property owners
- dissolution of partnerships and relationship breakdowns
Both domestic and commercial property ownership can result in disputes, as well as issues with local authorities (unique property disputes for a specific place), agricultural disputes and everything in between.
There’s no such thing as a standard property dispute and resolving them may involve numerous people and steps. But when something goes wrong in the property industry, resolution via the courts can be incredibly expensive and complicated for everyone. Mediation is one of the most effective ways to resolve a dispute, keeping the courts out of the picture and resolving issues before tribunals and litigation are needed.
What is mediation and how does the process work?
Courts are often discouraged if clients have not attempted to resolve a property matter before commencing litigation, so it’s always worth trying alternative methods of resolution before taking the matter to court. Mediation is the process of both parties coming together with an impartial mediator to help the parties reach an agreement. But mediators don’t impose the outcome in one direction or another. Rather, they facilitate the mediation and help everyone involved to reach a satisfactory resolution.
“A key benefit of mediation is that it is not as formal and drawn out as the arbitration or litigation process, rendering it less expensive for the parties”, explains a leading solicitor firm. “Following a successful mediation, a settlement agreement is drafted which includes the terms of compromise made between the parties”. Ultimately, mediation is a way for all parties involved in a dispute to find a way out of the conflict that avoids court action and results in a binding decision to resolve the issue, all managed via a neutral third party.
Mediation is a confidential and informal process, enabling all parties to sit together and discuss the problem from all sides. While this sometimes looks like a meeting with everyone present, in reality it’s usually the case that the mediator will sit with each party separately and act as the intermediary. They’ll be part of separate discussions, hearing the situation from both perspectives, so they can then help each person or team reach a settlement.
The benefits of mediation to solve property disputes
Settling a property dispute through mediation is often cheaper, faster and calmer than doing so through the courts. There are several reasons why, in the event of a dispute, parties should consider mediation before other routes.
One key benefit is greater control over the situation. Mediators work with both parties to find a solution, but they’re not forced into a situation they’re not happy with, since there’s no binding decision made until an agreement is reached. This also results in reduced costs, because the cost of settling disputes in court can be potentially expensive and unpredictable. Since mediation is cheaper and quicker, the costs are typically far less than taking the dispute to trial.
Mediation is often used for its ability to preserve relationships between parties and prevent added pressure from worsening the argument. It’s a way to ensure effective communication without the stress of a litigation battle, and a negotiated settlement at the end of the process that works for everyone.
The process of resolving a dispute in court has the potential to be a public process, but settling out of court via mediation preserves the confidentiality of the dispute. Both parties can also rely on support from trained, neutral meditation firms that will guide parties through the process to make it as stress-free and efficient as possible.
How can property professionals utilise mediation more?
Mediation offers many benefits for those involved in a property dispute, and it can be utilised more in the industry to prevent these arguments reaching the litigation stage. One way this can be achieved is by using it for negotiating leases if those involved have reached an impasse in terms of a new lease or renewing an existing lease. Mediation will help the parties reach a successful income more efficiently.
Another example is with anti-social behaviour disputes in multi-occupancy housing, preventing an injunction being brought to the situation or even an eviction. It’s a way that landlords can save money while also helping residents retain their residencies and keeping all parties happy in their homes. Mediation could also be used online if face-to-face meetings aren’t practical or in keeping with deadlines.
In some areas of law, mediation is compulsory, but at the time of this writing, there is no such legal requirement in property law. Jurisdictions in Scottish courts don’t impose fines in the event of failure to engage in mediation while some courts elsewhere in the UK may do if it’s deemed that the matter could have been resolved in another way. However, there are increasing calls for mediation to be made mandatory, in part because of the benefits it offers but also because many of the cases that reach the courts could have been prevented through early mediation.
Mediation is a great way to reach a decision about a property outside of a court, whether it’s for tenants and landlords, landowners and agricultural developers, residential property owners or others. With a neutral party on hand to facilitate a calm discussion, enabling everyone to have their say, both parties in dispute can reach an agreement that suits them without having to get the courts involved.
