25 Jun 2024
How Important Is Mediation In Resolving Strata Disputes?
A strata corporation is like a business run by volunteers. Members of the strata council run the business with its rules and regulations, but they are also neighbors with the owners and tenants within the strata. In any strata, unavoidable disputes arise between the neighbors over issues like noise levels, parking, use of common spaces and failure to follow regulations property.
The strata corporation is legally obligated to get involved in these disputes and take action to deal with them. The first approach is to get the dispute settled informally between the conflicting parties, and if this fails, a strata council hearing can be requested. In this situation, the strata council can recommend mediation to the parties involved.
Mediation is one of the few dispute resolution processes where a trained mediator comes in as a neutral third party not to make the decision for the parties involved, but to facilitate the exploration of how the feuding parties can come to a better understanding between them, about what has happened and to explore different options moving forward.
The mediation process is voluntary, confidential and allows the parties involved to maintain control over the outcome. This is favorable for the strata corporation because a lot of the times there will be a creative solution that suits all the parties involved.
Mediation has several benefits for strata councils:
Agreement is mutually beneficial
The negotiation is a mutually beneficial and acceptable agreement. The parties involved control the outcome and are allowed to express their views and hence the desired result is one that was created by the parties concerned, and not handed down by a third party.
Process is confidential
Whatever happens during the proceedings remains private unless the parties involved agree otherwise. This makes the parties comfortable because they know that any personal information will not be made public.
Process is informal
The process of mediation is not governed by any rules and regulations. It is informal and flexible and there are no formal rules of evidence and no witnesses. Lawyers are not required.
There are cost savings
Mediation is much cheaper than going through extensive litigation through the court system, which can become very expensive if the matter drags on. There are no court costs, legal fees, and other associated expenses.
Relationships are maintained
The mediation process allows the strata council to maintain good relationships between the parties involved after the dispute ends, which is important in a close-knit neighbourhood. This can help prevent future disputes from arising.
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