In appraisal arbitration, parties to a real estate contract often settle their differences by relying on two or more knowledgeable appraisers.
Most real estate transactions are based on the concept of market value, or market rent. Most 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 classified as types of alternative dispute resolution and 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 such as leases, stipulate resolution through an arbitration or mediation process rather than going to court. These options provide a timely solution at less cost. When matters are complex arbitration involves lawyers acting for both parties in presenting evidence and argument. In some disputes such as a lease renewal, a landlord and tenant may appear of their own behalf. 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.
Kent-Macpherson’s diverse team includes individuals who are trained and experienced in arbitration, mediation and appraisal. We pride ourselves on our professionalism and competency in these matters and can offer our services in any capacity relating to these alternative dispute resolution options.