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The Best Way to Resolve Real Estate and Construction Disputes

By Paul M. Lurie and Stanley Sklar

When was the last time someone involved in a real estate or construction business dispute told you enthusiastically how cost effective the court system was in resolving that dispute? Or that the judge or the jury charged with resolving the dispute fully understood the relevant underlying issues? Chances are you have never heard such praise for traditional litigation-based dispute resolution. But there is hope. For parties to real estate transactions and those involved in construction projects, alternative dispute resolution methods, including binding arbitration and non-binding mediation, offer proven and successful alternatives to an often inefficient and expensive court system. As this article illustrates, alternative dispute resolution requires utilizing trained, experienced, and cost-conscious mediators or arbitrators who are much better at resolving real estate disputes than are the inefficient and often ineffective courts.

Unfortunately, disputes are common among parties to real estate transactions and construction contracts. This article 1) identifies likely subjects of such disputes; 2) describes the disadvantages inherent in utilizing traditional litigation-based dispute resolution; 3) explains many of the myths surrounding mediation and arbitration; and 4) concludes by suggesting that non-binding mediation and/or binding arbitration often ensures that parties have a more efficient and satisfactory outcome.

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