Mediation vs. Arbitration

In arbitration, the parties are generally more concerned with testifying to the panel than talking through their dispute. Arbitration awards are generally an "all or nothing" proposition where one party is awarded money and the other is left with nothing. Feedback indicates that REALTORS® emerge from successful mediations with a higher level of satisfaction with the result than REALTORS® who participate in arbitration. Therefore, the Member Services Department urges you to consider mediation as an alternative when filing an arbitration request. If mediation is unable to resolve the dispute, the parties can proceed to an arbitration hearing without delay.

Mediation is optional before the case gets forwarded to the Grievance Committee for initial screening. However, once the Grievance Committee has reviewed the case and if it determines that the case is arbitrable and a mandatory arbitration, then the parties will have to attempt to resolve their business dispute via mediation before they can go to an arbitration hearing.