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What is mediation in a seller disclosure dispute?

Seller Disclosure Mediation is an informal process where all the parties are placed into rooms in the same building and a third party (the mediator) goes from room to room with settlement offers until a resolution can be reached or one of the parties ends the mediation.  This process is very effective at resolving disputes without the uncertainty and costs of going to trial.

Many courts now order mediation as part of the litigation process; however, it is not limited to after a case has been filed.  Pre-litigation mediation can be an effective means of resolving disputes before money has been spent on litigation.  Moreover, the most recent version of the real estate contract provided by Kansas City Regional Association of Realtors to local realtors includes a mandatory pre-litigation mediation clause.  As such, seller disclosure mediation is required for most real estate contract disputes in the Kansas City area.

Mediation is particularly useful in seller disclosure disputes because the costs of litigating a seller disclosure dispute can often represent a significant portion of the costs of repairing the defect.  As such, the economics may prevent the buyer from bringing the claim.  As such, seller disclosure mediation can often be a cost-effective means of ensuring that the buyer receives some financial consideration from the seller with regards to the defect.

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Real Estate Attorney who provides personalized legal services for real estate investors, developers, brokers and agents, contractors, homeowners, lenders, and others in the real estate industry.