"Classic" Mediation:
This is the long-established NAR "assisted self-settlement" procedure where REALTOR® mediators are trained to act as a peacekeeper/facilitator/realist to assist the disputing parties in reaching their own self-settlement.
Mediators then help the parties write down their settlement on the NAR mediation form and the parties sign.
Because the parties arrived at the decision and often write a check at the end of the mediation, there are not many post successful mediation problems.
However, if a party breached the mediation agreement they signed, most judges would easily issue a declaratory judgment that would have the same authority as a lawsuit judgment.
Examples:
Brokerage v. Brokerage commission disputes (to avoid formal arbitration hearing)
Earnest money disputes between buyers and sellers (to avoid court)
Post-closing condition of property disputes between buyers and sellers and maybe REALTORS® (to avoid court)
Internal brokerage compensation disputes between BIC and an associated licensee or formerly associated licensee (rarely occurs)
"Ombudsman" Mediation aka Ethics Mediation
A relatively new NAR program where the mediator again participates as a peacekeeper/facilitator/realist to assist the disputing parties in reaching their own self-settlement regarding an NAR ethics dispute.
Mediators then help the parties write down their settlement on the NAR mediation form and the parties sign.
This program formalizes what many association executives have done informally over they years to settle ethics disputes without a full ethics hearing.
Ethics hearings involve about 30 members start to finish and about $2,000 of staff time and association resources. So, mediating an ethics dispute to avoid the formal ethics hearing benefits everyone.
Examples:
REALTOR® v. REALTOR® over issues with some NAR ethics articles 1 through 16
Member of public v. REALTOR® over issues with some NAR ethics articles 1 through 16
Settlements can involve money, apologies, admissions, agreement to take training, etc.
Court Mediation:
Court mediation operates outside the REALTOR® system. Court mediation typically involves trained lawyers who are certified to mediate disputes outside of civil court and family court.
Posted by : Byron King on 8/14/18 (This information is only accurate as of 8/14/18. You must contact SCR for updates and changes to this information after 8/14/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)