In an appraisal arbitration, parties to a real estate contract usually settle any disagreements by relying on two or more experienced appraisers. The majority of real estate transactions are centered on the concept of market value, or market rent. Generally, individuals believe that if they have arrived at a “market-based” conclusion, the deal is fair. When uncertainty arises, an independent and objective appraisal can assist across a wide range of scenarios in real estate disputes.
Arbitration and mediation are regarded as types of alternative dispute resolution. Both have emerged as a means to resolve real estate value disputes. The appropriate value of the property remains the primary concern.
If the parties cannot agree on the value or the rent for a property, many commercial contracts, demand resolution through an arbitration or mediation process rather than going to court. These options provide an effective solution at a lesser cost. When matters are complex, arbitration involves lawyers acting for both parties in presenting evidence and argument. At this stage, an Appraiser may be called as an expert witness or may be in the role of the Arbitrator. The Arbitrator acts as a judge, listening to evidence followed by structuring a fair and binding decision. In mediation, the Mediator is a neutral facilitator who assists with negotiations and working towards an acceptable outcome for all parties involved.
Our team at D.R. Coell includes trained individuals, experienced in arbitration, mediation and appraisal. We are proud to offer our expertise in any capacity relating to these alternative dispute resolution options.