The SMDRA Real Estate Program has been designed to implement the mediation clause presently in Colorado real estate contracts to provide a solution for disputes between buyer and sellers.  This program is not intended to replace the REALTOR® Professional Standards Program, which addresses disputes between REALTORS® or REALTORS® and their clients or customers, but is an option for those disputes which are not covered under mandatory or voluntary arbitration.

If your dispute is a “contractual dispute or specific non-contractual dispute as defined in Standards of Practice 17-4 between REALTOR® (principals) associated with different firms, arising out of their relationship as REALTORS®, the REALTORS® shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter”.  Please refer to the Professional Standards (Filing a Complaint) Arbitration portion on the website, which addresses Arbitration – Mandatory or Voluntary.

Mediation can be helpful in resolving almost any dispute arising out of a real estate transaction, including:

• Disputes over Earnest money deposits
• Condition of property & repair conflicts

For Ethics Arbitration and Legal Advice – Contact the Colorado Association of REALTORS

Mediation is the process of resolving disputes in which an impartial, trained, third party – the Mediator – helps people in disagreement negotiate a mutually-acceptable solution.  When the disputing parties have reached and agreed upon a mutually-acceptable solution, they sign a written agreement outlining the terms of the settlement.  Once the agreement is signed, parties are legally bound to abide by its terms.  If the parties cannot reach a mutually-agreeable settlement, they are free to arbitrate or litigate their dispute.

Parties are also given the Mediation-Arbitration Option.  Mediation-Arbitration (med-arb) combines the processes of mediation and arbitration, utilizing one person to serve in both roles.  If resolution is not reached through mediation, the med-arbiter is empowered by the parties to make a binding decision.  This option is available to all parties.

Mediation can save parties thousands of dollars over litigation. The mediation fee for disputes under $5,000.00 is $225.00 for the first three hours, per party, and $75.00 per party per hour for additional time.  The mediation fee for disputes of $5,000.00 or more is $300.00, per party, for the first three hours and $100.00 per party for any additional time.

Parties to mediation have the right to be represented by counsel; however, attorneys are not required to participate in the mediation process.  Parties should consult an attorney if they have any questions or concerns about mediation.  The mediator and SMDRA, DO NOT give legal advice.