DRS Mediation
Lansing Michigan Real Estate for Lansing Homes and other Real Estate Searches. 1400 REALTOR Members in the Greater Lansing Michigan area.DRS Mediation
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Homesellers/Homebuyers Dispute Resolution System (DRS)
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A fast, easy, and inexpensive alternative to litigation.
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Although a majority of real estate transactions
close without incident, there is a possibility that a problem or dispute will occur. When a dispute does arise, it is usually successfully resolved through the normal channels of communication and negotiation. Occasionally, a dispute arises which cannot be resolved through negotiation. In the past, when negotiations failed, parties took their case to Court. This can be an expensive and traumatic experience. Today, they are taking their disputes to Mediation.
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What is Mediation?
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Mediation is a process in which the disputing parties attempt to resolve their disagreements with the help of an impartial, trained third party - the Mediator. The Mediator does not offer opinions, pass judgement, or render legally binding decisions. The Mediator's only function is to help parties identify their differences and reach a disagreement on how to resolve them. When the disputing parties have reached and agreed upon a mutually acceptable solution, they sign a written agreement which outlines the terms of the settlement. Once the agreement is signed, the parties are legally bound to abide by its terms. If the parties cannot reach a mutually agreeable solution, they are free to arbitrate or litigate their dispute in Court as if the Mediation never took place. In addition to being easier, faster, and less expensive than litigation, Mediation is nonadversarial. Decisions rendered by an Arbitrator or Judge usually involve a winning party and a losing party. In Mediation, there are no losing parties because the parties have been part of the process and together have agreed on the terms of the settlement.
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Access to Service
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Access to Service DRS Mediation can be used by any of the parties to a real estate transaction in which the services of a REALTOR® have been obtained - Sellers, Buyers, Brokers, Builders, Home Inspectors, etc. With the exception of controversies that are subject to hearings under the REALTOR® Professional Standards procedures, almost any type of dispute that arises from the transaction can be mediated under the DRS Rules and Procedures. As an added benefit to all Buyers and Sellers, a $30 application fee will be charged if any party to the Mediation uses a Nonmember of the Greater Lansing Association of REALTORS®. This fee is in addition to the Mediator's fee.
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Rules and Procedures
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How, when, and by whom Mediation is initiated and conducted is covered under the DRS Rules and Procedures. The Rules and Procedures ensure fairness, uniformity, and expediency.
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Written Agreement to Mediate
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Parties who decide to submit potential disputes to Mediation sign a Property Listing contract, a Buy/Sell Agreement contract that contains a Mediation clause, or a Closing Agreement Form. The clause states, in part, that parties agree to submit any dispute or claim that arises from the transaction to Mediation under the DRS Rules and Procedures. Once the contract or addendum is signed by the parties, the parties must submit their disputes to Mediation.
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Initiating Mediation
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Any party can invoke DRS Mediation by submitting a written request to the DRS Mediation providers. The Mediation provider arranges, schedules, and conducts the Mediation conference. The Mediation conference should be held within 60 days from the date on which the Mediation provider receives a party's request to initiate Mediation. Usually the conference is scheduled within 30 days after the Mediation agreement has been signed by both parties. The typical conference lasts between one and three hours, depending on the complexity of the disagreement.
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Mediators
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DRS Mediators are experienced, qualified, and trained Mediators who have agreed to participate in the program. Parties in a Mediation select and agree on a Mediator in advance of the Mediation conference.
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Role of Attorney
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Although parties to the Mediation have the right to be represented by counsel, attorneys are not a party to the Mediation and do not participate in the Mediation conference. Attorneys may attend a Mediation solely to advise and counsel their Client. Parties should consult an attorney if they have any questions or concerns about Mediation or the DRS Mediation service. In the interest of fairness, however, a party who intends to be represented by counsel shall notify the Mediator and other parties of such intent at least ten (10) days in advance of the conference.
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Fees
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Fees for DRS Mediation services will be split equally between the parties to the Mediation. Mediation fees are at a rate of $30.00 per hour, per party, to be prorated on the basis of $7.50 per quarter hour, per party. For more information, please contact the Greater Lansing Association of REALTORS® at (517) 323-4090.
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Facts about Mediation
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Mediation is FASTER than litigation. A lawsuit can take anywhere from several months to years to be decided. As a rule, Mediation takes about 30 days from the time the Agreement to Mediate form is signed by both parties. Also, Mediation is LESS EXPENSIVE than litigation. Mediation is NONADVERSARIAL. Arbitration and litigation focus on disagreements between the parties and result in win-lose decisions imposed by one person - the Arbitrator or the Judge. Mediation, on the other hand, focuses on agreement between the parties and results in a win-win settlement reached and agreed upon by the parties themselves. Parties who agree to mediate RETAIN THE RIGHT TO PURSUE OTHER LEGAL REMEDIES. If parties cannot reach a mutually acceptable settlement during the Mediation conference, they are free to arbitrate their dispute as if Mediation never took place. Statistics show that MEDIATION IS SUCCESSFUL 80% to 90% of the time.
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