Mediation
Disputes often arise when a tenant and landlord cannot agree on the condition in which a property should be returned at the end of a lease.
ADR offers two primary methods for resolving disputes: arbitration (including Expert Determination) and mediation, which is becoming increasingly common.
When facing potential end of lease dilapidation disputes, the Dilapidations Protocol strongly recommends that parties consider mediation as the primary form of Alternative Dispute Resolution (ADR). This approach is an effective way to resolve disputes in a commercial property setting and can help avoid costly litigation. By consulting with licensed solicitors or accredited mediators, landlords and tenants can receive expert advice on how to properly navigate negotiations and reach a resolution that meets the needs of both parties.
Mediation is a collaborative process that focuses on resolving disputes without the need for litigation. It offers an effective alternative to traditional legal proceedings, allowing parties to come together and work towards a mutually beneficial resolution. Most mediations are efficiently arranged within a month, typically lasting just one day. Each side shares the cost of the mediator's fee and any professionals they choose to have present, ensuring fairness in the process.
When facing potential dilapidation disputes, it is crucial to consider mediation as a form of 'assisted negotiations'. The mediator is there to assist with the resolution of any property-related dispute, especially when it comes to dilapidations.
A skilled mediator (often a barrister) works closely with the parties involved, both collectively and in individual sessions. They assist in navigating through disputes related to dilapidations, property issues, tenant claims, and commercial leases. By providing expert guidance and facilitating discussions, they help in achieving a mutually acceptable resolution for their tenancy agreements while avoiding the potential drawbacks of litigation such as prolonged legal battles, high costs, and uncertainties.
In particular, it should be noted that in mediations:
- Everything discussed remains confidential
- More than 85% settle on the day, or shortly thereafter
- To reject, or ignore, an offer for mediation risks a sanction on costs in court even if you ‘win’