If you’re in the commercial real estate business long enough, you’re going to end up having some disputes with other parties. Whether that disagreement is with an easement holder, a tenant, another business or the local government, you want to put the dispute to bed quickly and cheaply. With that in mind, we want to take a closer look at three ways you can work to put an end to disputes in commercial real estate.
The First Step - Negotiation
The first step in any dispute resolution process is typically to reach out to the other party directly. Perhaps they are unaware that an issue exists, or they would be willing to adjust their habits to make your life a little easier. People tend to be quite receptive to change if you are level-headed and reasonable with your request.
If you can’t work out a plan simply by asking, you may have to sweeten the pot a little. You may be able to pay the other party to end the dispute. For instance, you may be able to buy out another party’s easement agreement so that you can bring an easement to an end. We understand that you may not want to buy out the other party, but this can be a quick way to get someone to agree to your terms, and it can end up being a lot less costly than the other options on this list.
The Next Step - Mediation
If negotiating with the other side on your own doesn’t work, it’s time to call in a professional. Mediation is a form of conflict resolution where an outsider is brought in to attempt to broker an agreement. The mediator does not have a vested interest in the situation and will hear the arguments from both sides. They’ll be able to understand what each side wants and where they may be willing to make concessions, and this outside perspective can oftentimes find a middleground that is amenable to both parties because they are more removed from the situation.
Nothing that is suggested during mediation is considered legally binding unless both sides agree, so while meditation can help to find a solution, the dispute will only be resolved if both parties can end up in agreement. Hiring a neutral mediator will be an expense, but it will not be as costly as litigation.
The Final Step - Litigation
The final step in resolving a commercial real estate dispute is by litigating the matter in court. Both sides will bring in lawyers to argue their case before a judge, who will issue a final ruling on the matter. This is the most costly option, and expenses will only add up if one party opts to appeal the decision and drag the legal process out longer. It’s preferred to settle the matter outside of court, but it can help to achieve your desired outcome if the other party is resistant to any requests or concessions you’ve proposed to put an end to the issue. Hiring competent and experienced legal counsel is imperative if you hope to win a dispute in court.
The team at Commercial Partners can help identify potential issues before they grow into a full blown dispute during the acquisition or sale of your latest commercial property. For more information, or for assistance buying or selling your commercial property, reach out to the team at Commercial Partners today at (612) 339-2470.