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The PWAR Mediation Solution

Mediation – A “Winning” Alternative
Mediation – General Information
Ready to Mediate

Mediation – A “Winning” Alternative

Despite the best efforts of well-intentioned REALTORS , disagreements still occur. While less formal, faster, and less expensive than litigation, arbitration is not without cost in both time and money on the part of the parties. Substantial board/association human and financial resources are also consumed in providing this service to members. There is an alternative to arbitration, albeit one that is available only where all parties to a dispute voluntarily agree to use it - mediation.

Mediation is a service provided by every board/association of REALTORS . Unlike arbitration, in which the parties present their cases to a panel of arbitrators whose decision is final and binding, mediation brings the disputing parties together in an atmosphere conducive to dialogue and conciliation, encouraging them to work together to reach a mutually acceptable resolution. Experience has shown that 80% or more of the disputes that otherwise would be arbitrated can be resolved faster and more efficiently through mediation. This is a significant savings in time and expense for both the parties and for boards and associations. Mediation can also be a positive experience for those who participate because, rather than a "winner" and a "loser" being determined by a panel of arbitrators, in mediation the parties work together, guided by a mediator, to fashion their own solution. Mediation is frequently a "win-win" situation for everyone.

Boards/associations generally have one or more mediation officers who act as facilitators/intermediaries. These  are typically REALTORS  who are experienced and adept in dispute resolution techniques. While mediators often have personal "styles", their primary objective is to help each party appreciate the position of the other party, then to move them forward toward an amicable resolution.

Detailed information about mediation is in the National Association's Code of Ethics and Arbitration Manual. Specific information about the procedures for initiating mediation can be obtained from local boards/associations of REALTORS .

Mediation can be initiated in a number of ways. While there is no reason why two REALTORS  with a disagreement cannot simply ask the local board/association to provide a mediator, in many instances mediation begins with the filing of a formal arbitration request. In some areas, requests for arbitration are automatically reviewed by the grievance committee and, after a determination is made that an arbitrable dispute exists, the disputing parties are invited to participate in mediation.

In other areas, filing a formal arbitration request automatically triggers a request to the parties asking whether they would like to attempt mediation. If the parties agree to mediate their dispute, the grievance committee is not called on to consider whether an arbitrable dispute exists unless a party subsequently withdraws from the mediation process, or mediation proves unsuccessful. And, where mediation is offered prior to initial review of an arbitration request by the grievance committee (to determine whether an arbitrable dispute actually exists), if any of the parties initially refused to participate in mediation, mediation will be offered to the parties again following the grievance committee's review if an arbitrable dispute actually exists. This "second chance" approach is based on the premise that mediation is preferable to arbitration, not only from the parties' standpoint but from that of the board/association, and acknowledges that some parties may not choose to mediate unless it is clear that an arbitration hearing is the undeniable alternative. Offering a second chance to participate in mediation ultimately benefits the parties and the board/association.

A mediation session is fundamentally simple. The mediation officer uses various techniques to encourage the parties to explore, understand, and appreciate each other's position. The most desirable solution is one crafted by the parties themselves through cooperative effort. When the parties reach agreement, they are encouraged to put it in writing and sign it. If the parties are unable to reach a mutually acceptable solution, the mediator can recommend a solution. The mediator's recommendation can be made orally or in writing, though a written proposal that the parties can subsequently consider is preferred. The parties then have up to forty-eight hours to consider the mediator's recommendation and decide whether they will agree to it. If either party does not agree with the mediator's recommendation, the mediation process is over and the arbitration process proceeds (assuming arbitration has been requested).

The fact that at times mediation does not produce the desired result does not diminish its value to REALTORS  and to boards/associations. There will be instances when REALTORS  mediate in good faith but, for one reason or another, are simply unable to reach a joint agreement or accept the solution proposed by the mediator. In such cases, the alternative is a decision imposed on the parties by a panel of arbitrators after an arbitration hearing. While this may be the only answer, a mutually-fashioned, mutually agreed upon solution to disagreements between REALTORS  is the preferred outcome.

Mediation – General Information

As an alternative to arbitration, mediation is an option offered to resolve a dispute arising out of a real estate transaction.

 Mediation is designed to reduce the time and expense of arbitration and to permit amicable resolutions of disputes involving Association members, clients and customers.

Mediation is voluntary.  No party may be compelled to participate.  Mediation will proceed only if all parties to the dispute voluntarily consent to mediation and sign and return to the Northern Virginia Association of REALTORS®, the Mediation Consent form.  Mediation may be terminated by any party at any time and for any reason prior to the acceptance and signing by all Parties of a Mediation Resolution Agreement.

If any party withdraws from the mediation at any point, any discussions, comments or determinations reached through mediation will not be introduced as evidence nor be considered in any manner by an Arbitration Hearing Panel.  Furthermore the Association Mediation Officer will not be required to testify before an Arbitration Hearing Panel.

 If you wish to mediate, the Consent to Mediate form must be signed and returned to the Association  If the complainant has agreed to mediate and the respondent also wishes to, the respondent must return the signed Consent to Mediate form to the Association within 15 days from date of this mailing.  Failure of respondent to do so shall be deemed to be an election not to mediate and the dispute will proceed to arbitration.  The parties must submit the “Request And Agreement to Arbitrate” form and the “Response and Agreement to Arbitrate” Form (whichever is applicable) and a $500 filing fee with their Consent to Mediate form.  NVAR procedures require that the Grievance Committee review the request (and response, if requested by the Grievance Committee) to determine whether an arbitrable matter exists before proceeding with mediation.  Once determined arbitrable by the Committee, the Association Mediation Officer shall designate a date, time and place for the mediation.  Each party will receive at least 10 days prior notice of the designated date, time and place.

Either party may file a written request for disqualification of the Mediation Officer.

 Mediation is an informal, no cost, non-structured process.  The parties can agree to a mutual resolution of the dispute at any time during the mediation process.  If they do not, however, the Association Mediation Officer will make a recommendation after a thorough discussion of the dispute.  If either of the parties objects to or rejects the proposed resolution, the mediation process will be deemed concluded with no force and effect on any party and the dispute shall then proceed to arbitration.

 The “Request and Agreement to Arbitrate” form or the “Response and Agreement to Arbitrate” form (whichever is applicable) and the $500 filing fee must be returned with the Consent to Mediate form if you wish to mediate.

Ready to Mediate

Please download and complete the following forms:

Please send completed forms to:

PWAR
9213 Center Street
Manassas, VA 20110


Prince William Association of REALTORS®, Inc.
9213 Center Street, Manassas, VA 20110
Phone: 703-368-8177 • Fax: 703-368-8977 • E-mail: info@pwar.com
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