Frequently Asked Questions About Real Estate Mediation
Answers for buyers, sellers, agents, brokers, and attorneys considering real estate mediation in Western Pennsylvania.
Your Real Estate Mediaton Questions, Answered
Real Estate Mediation Cost and Coverage
How much does mediation cost with Real Estate Mediation Service?
A single hour with an independent mediator could cost $500 alone. Real Estate Mediation Service, through its exclusive contract with the non-profit Realtors Association of Metropolitan Pittsburgh (RAMP), keeps fees capped and predictable based on the amount in dispute, not on how long the mediation takes:
Dispute Amount | Total Fee | Fee per party |
|---|---|---|
Less than $4,000 | $400 | $200 |
$4,000 to $8,999 | $700 | $350 |
$9,000 or more | $1000 | $500 |
Both parties pay equal shares, and if mediation does not take place, your fee is refunded in full.
Is mediation cheaper than going to court?
Litigation typically involves attorney fees plus court costs, and those can add up to tens of thousands of dollars as a case continues. Real Estate Mediation Service uses a flat, capped fee for pre-litigation cases, so you know the total cost before you begin. For many buyers and sellers, this makes mediation a far more cost-effective way to work through a dispute before it reaches litigation.
What is mediation?
Mediation is a confidential process where a neutral third party, the mediator, helps both sides of a dispute work toward an agreement. The mediator does not decide who is right, assign fault, or issue orders. Both parties keep control of the outcome throughout the process. For a closer look at how mediation works, visit our Mediation page.
Is mediation worth it for my situation?
If you are dealing with a real estate dispute such as a hand money disagreement, a disclosure issue, or a contract dispute, mediation gives you a private, lower-cost way to work toward an agreement before turning to litigation. Learn more about when mediation makes sense on our Mediation page.
May I use Real Estate Mediation Service if there was no mediation clause in my sales agreement?
Yes. Real Estate Mediation Service accepts cases even when the sales agreement does not include a mediation clause. Learn more about Paragraph 27 and when mediation is required on our Paragraph 27 page.
The Real Estate Mediation Process
How do I start the mediation process?
Submitting a mediation request takes just a few minutes. Complete the request form, and Real Estate Mediation Service will review your case and follow up with next steps.
How long does it take to get scheduled?
You will hear from us promptly after submitting your request, and mediation is usually scheduled within a few weeks. Exact timing depends on when your request comes in and the availability of both parties.
How long does the full mediation process take to complete?
Most real estate mediations are completed within a few hours. There is no time limit on your pre-litigation mediation, so the process takes as long as your case needs. The flat fee stays the same regardless of how long it takes.
What happens if one party refuses to mediate?
This depends on whether your sales agreement includes Paragraph 27, the clause in the standard Pennsylvania Association of REALTORS® agreement of sale that requires mediation before litigation in most cases.
If your agreement includes Paragraph 27 and one party refuses to mediate despite that requirement, this may affect their position under the contract. Real Estate Mediation Service can help clarify next steps in this situation.
If your agreement does not include a mediation clause, mediation is voluntary. If one party declines to participate, the remaining path is typically litigation, which can take months or years and cost tens of thousands of dollars in legal fees and costs.
Learn more about Paragraph 27 on our Paragraph 27 page.
Can other people attend the mediation, such as an attorney, agent, or broker?
Yes. You are welcome to bring an attorney, your real estate agent or broker, or a family member for support. What matters most is that both parties to the sales agreement are present, since they are the ones who can reach an agreement.
Your Right and the Real Estate Mediation Agreement
Is a mediation agreement binding?
If both parties reach an agreement, it is documented in a written Mediation Agreement, which is binding.
Is the mediation process confidential?
Yes. The mediation process is confidential. What is discussed during mediation generally cannot be used later in litigation, which allows both sides to speak openly while working toward an agreement.
Are my legal rights preserved if we don't reach an agreement?
Yes. If mediation does not result in an agreement, you keep the right to pursue your case through litigation. Mediation is designed to give you a chance to work through your dispute privately first, without giving up any of your legal options.
What is the Home Buyers/Sellers Dispute Resolution System (Paragraph 27)?
Paragraph 27 of the standard Pennsylvania Association of REALTORS® agreement of sale requires mediation before litigation in most cases. Learn more about how this works and what it means for your transaction on our Paragraph 27 page.
