Real estate development especially commercial real estate is not for the faint in heart. The industry comes with all sorts of things among them disputes which are now becoming common these days. Â These disputes have the ability to bring down the whole efforts of commercial real estate development if not well managed.
Simple things like construction defects to ownership can cause serious disputes in real estate capable of wrecking an investment. Â As real estate investor you need to watch out for the possible causes of some of these disputes and avoid them where necessary.
Mistakes like messing your property drainage system which results in environmental can be a source of a dispute between you and the state. Â This is why you need to try your level best to avoid some of these disputes. Â Here are some potential causes of real estate disputes management methods you can use whenever you are caught up in a real estate dispute.
The Use of Mediation
Mediation is a time tested dispute solving mechanism across the world. The method can still apply in real estate in case of a dispute. Â Mediation is simple and does not involve a lot of things like money and deep expertise like it is the case with other dispute solving mechanisms. The approach involves the use of a third party specifically someone who is not involved in the dispute in any way.
Mediation has its advantages and disadvantages which you must consider first before proceeding with it as a dispute resolution mechanism. One of its biggest benefits is the fact that it is cost effective and the other one is that mediation is very flexible compared to other dispute resolution mechanisms. Â However, just like any other dispute resolution mechanism mediation comes with its own downsides as well.
For instance, the use of mediation might fail to deliver an effective and long lasting solution to the dispute. Â In some cases, mediation can make a dispute much worse than it was in the first place making it one of the unreliable dispute resolution mechanisms.
Litigation as a Dispute Resolution Mechanism
Litigation is one of the most common and most preferred dispute resolution mechanisms there is. The method involves going to court in search of a preferred settlement. Compared to mediation, litigation is much better and reliable as it allows each party involved in a dispute to go for what they want and get a favourable ruling. Â With litigation, there is always a chance of either of the parties involved in the dispute getting what they want.
However, litigation comes with its own disadvantages as well which include high fees charged in court especially the dispute is so deep requiring the use of lawyers. Â In such a case, the parties in the dispute might have to pay a lot of money to get proper legal representation in court even without a guarantee on the success of their case.
Conclusion
Litigation and mediation remain two of the best commercial real estate dispute resolution mechanisms. These two disputes resolution mechanisms have their own good and bad sides and must be carefully considered first be application.
