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Realtors and brokers confront conflict every day. Buyers and sellers have starkly different interests, and the success of the deal depends on the broker's ability to bring them together.

Your understanding of conflict, and your ability to effectively manage the emotions that often arise, are critical skills that can make or break the deal. The cost of a lost sale dwarfs the cost of learning these vital skills. And it's guaranteed!

Realtors and brokers are advised to register for the Train-the-Professional (Track 3) option. Office managers may prefer the Train-the-Manager (Track 2) option.

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Bibliography

Edited by Melissa Zarda. See other bibliographies.
Contributors: Anil Sarathy, Lynn Sedlak, Esra Alagoz, Veda Ayub

Copyright restriction: The contents of this bibliography may not be placed on other websites, but links from other websites may be directed to this page. Hardcopies of this page may be printed for academic purposes.

  • Calkins, G. D. (1999, September). Why Mediations Fail and How They Can Succeed. Journal of Property Management,

Calkins explains the importance of mediation in the real estate industry and that while mediation is an effective process to resolve conflict. The mediation process requires a lot of skill and work. Preparation is the key to successful mediation and lack of knowledge and understanding of circumstances between all parties can lead to an extensive and drawn out process. According to Calkins the mediator must be vocal in the pre-mediation exchange and must be knowledgeable.

  • Ellis, R.S. (2001) Negotiation Skills in Mediation . Retrieved from the web on July 17, 2005. Chicago. National Association of REALTORS®.

Many Local REALTOR® Associations have an informal grievance process for ethics and/or arbitration matters that can be utilized by members and the general public. This paper examines negotiation models and mediator strategies which could be useful during this process. A discussion of barriers to effective negotiation and mediator response is also included.

  • Evans, Blanche (2002, June 12). Agent news.

Author Blanche Evans discusses the usefulness of mediation in solving conflict in the real estate business. She discusses the importance of mediation as a preventative measure against expensive litigation. In addition to citing examples of where mediation is useful, the author also writes about real estate agencies offering mediation as a fee service to clients. The mediators involved in this service are experienced real estate agents that have completed mediation training.

  • Fatsis, S. (1995, November 3). House plans can be blueprints for conflict. Wall Street Journal, p. B8.

Architects art and home owners desire often doesn't meet expectations. The article talks about how we can avoid conflict between the architect, the home owner and the contractor. Most of the conflicts in building high end homes stem from lack of understanding between the owner and the architect. The situation gets worse when owner has a separate agreement with the contractor, who has no contractual obligation with the architect. Conflicts such as these can be avoided if there is an agreement on what each party can expect from other.

  • Gold, G. (2005, September, 12). Compelling specific performance of a real estate contract. Los Angeles Business Journal.

Common real estate disputes are discussed. Gold discusses the legal procedures necessary to set up a claim against a party that does not honor the contract. Arbitration and mediation are also included in his discussion. Gold explains that arbitration is a better process because the legal and formal rules are more relax and is less costly than going through traditional litigation procedures.

  • Halama, W. A. (2005, July). Real Estate Offerings: Hidden Fees and Conflicts of Interest. Journal of Financial Planning, 18 (7), 60, 7.

The content of the article reveals that there is widespread conflict of interest in the financial services industry. The document further examines multitude of hidden fees and attendant conflict of interest typically found in offerings of interest in real estate investments, including partnerships, limited liability companies, and tenancies in common. The content further examines the fee structure found in a recent offering that includes eight separate categories of fees and payments to the promoter, potentially aggregating millions of dollars.

  • Hazen, J. Field Guide to Mediation and Conflict Resolution. Chicago. National Association of REALTORS®.

This webpage was developed by the National Association of REALTORS® for its over one million members. The real estate industry disputes rely on negotiation for solutions. This page includes a variety of resources, including articles, Web site links, books and other sources relating to mediation, conflict resolution, arbitration and dispute resolution.

  • Hudgins, M. (2004, November). Land-Use Conflicts on the Rise. PRIMEDIA Business Magazines & Media Inc, 46 (11), 34, 1.

Conflict between the real estate developer and the neighborhood group are ever increasing in the country. Some underlying factor perceived is that the local shop keepers influence the political leaders to ensure that big retailers don't start businesses in their area. Alternatively opponents raise issues related to environmental, historic preservations etc as reasons for development not to take place. With the advent of information technology community groups have become more effective and organized in promulgating issues.

  • Hudgins, M. (2005, May). When is Eminent Domain Eminently Unfair? PRIMEDIA Business Magazines & Media Inc, 47 (5), 14, 2.

The use of eminent domain to clear urban renewal sites has turn out to be a rising conflict between the local property owners and the city government. But now people who don't want to sell their property at any price, just to see their land go to another private owner are fighting back. The article further describes that the official formalization on eminent domain will put the nation's property owners – including the commercial owners at risk.

  • John, R. K. (1994, December). Conflicts of interest or 'Thou shalt not steal' revisited.

Ethical violations in the real estate industry can sometimes be described as conflicts of interest. It is crucial to ascertain both real and perceived conflicts, failure do so can result in serious consequences to a real estate counselor or other professionals. Codes of ethics are adopted by professional organizations to guide the conduct of their members and to give comfort to the public concerning the objectivity and quality of the services offered by their members. The appearance of a conflict can be even more dangerous than an actual conflict because it may not be recognized.

  • Levy, G. M. (1999, September/October). Resolving real estate disputes. Real Estate Issues, 24 (3), 1, 9.

It is a common practice that real estate disputes are settled through negotiation or settlement through a court. Establishing underlying interest of people involved in conflict is imperative to the final out come. The article further dwells into different strategic methods adopted for negotiation and dispute resolution. The technique adopted is discretionary however the preferred method should provide likelihood of a cost effective and timely resolution of the conflict.

  • Mazirow, A. (1987, August). The broker as agent and fiduciary [Electronic version]. National Real Estate Investor, 29 (9), 44.

The overall concept narrated in the article provides a full proof solution for real estate brokers to pursue a successful career without getting involved in conflict with the parties involved in the deal. The document present rules on how to avoid conflict and yet maintain broker's position in the sale process. The rules also emphasizes on how brokers should represent the principal and not the deal or the agent. Experience shows that conflict can be avoided if on commencement complete disclosure of the deal is revealed.

  • National Association of REALTORS®. (2005). Before You File an Ethics Complaint.

The article is an excellent introduction of NAR's grievance process for the general public or a review for a REALTOR®, including basic background, a good overview of filing an ethics complaint and what happens before, during and after the hearing. Many times, individuals opt to not file a case because the process can be long and overwhelming. The article does a good job explaining and simplifying the process.

  • National Association of REALTORS®. (2005). Code of Ethics and Standards of Practice.

Many consumers do not know the difference between a licensed real estate agent and a REALTOR®. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Violation of the Code of Ethics can result in a party bringing an ethics or arbitration case against that individual. This information is a good resource to review if you are writing about conflict in real estate because it is the source a local association's grievance committee will refer to when determining if a matter should go before a hearing panel.

  • National Association of REALTORS®. (2002). REALTORS® Guide to Arbitration and Mediation. Chicago. National Association of REALTORS®.

This Guide was developed at the direction of the National Association's Professional Standards Committee to provide REALTORS® and association executives with an understanding of the rationale for the obligation, an overview of the process, and guidance in conducting business so as to avoid disputes.

  • Neil, M. (2004, February). Dream Home Nightmares. ABA, 90, 46, 8.

Resolving conflicts over defects and repairs of houses or condominiums can be difficult, and sometimes prohibitively expensive, even though changes in the law in recent year have generally imposed more duties on sellers of real estate and their agents to disclose defects, including environmental hazards, to buyers. Neil examines the difficulties that abound for owners who seek to recover for defects in a house they have already purchased.

  • Penski, F. (2002, April, 17). Arbitration can be useful in settling real estate disputes- Insiders Outlook. Real Estate Weekly.

In this article, Penski asserts that often times arbitration is a less expensive option than litigation. However, in his article he further mentions that some cases are not suitable to the arbitration process. The author cites examples of cases that are in arbitration for years because of the complexity of the dispute and or the amount of evidence that requires research.

  • Phipps, L. (2005, June 17). Turning problems into opportunities. Kansas City Daily News Press, p. 1.

Time is of essence in resolving residential real estate dispute. Taking a position on keeping the conflict alive can be expensive and frustrating. The author highlights the potential benefit of resolving conflict through mediation which is substantial. Resolving disputes in the court or at the settlement table is a lengthy process which often results in disappointment. A formal agreement through structured mediation such as putting money in an escrow can harmonize the situation and help participants to be engaged in a dialogue.

  • Schwethelm, A. C. (1994, December). Fair play or fair game. Real Estate Issues, 19 (3), 37, 4.

It is a challenge for the real estate counselor and professional to ensure that the client services holistically address the interest of the client. The practitioner in the industry has to consider what obligations exist and how best the conflict can be resolved which is in best interest of the client. In the article author has narrated series of incidence of a small office practitioner who specializes in providing litigation-oriented real estate appraisal and counseling services.

  • Schulze, K.J. (2002, November, 18). Damage experts in business and real estate-business litigation. Los Angeles Business Journal.

In this article, the author analyzes the complexity of business transactions and discusses the importance of having experts available early on in the litigation or mediation processes (depending on what clients choose). Because conflict is frequent in business and common in real estate transactions the author recommends using experts early on in mediation process to ensure a quick and decisive decision.

  • Tarantello, R. (1994, December). The Ethical Dilema of Expert Testimony. Real Estate Issues, 19 (3), 8, 4.

Real estate experts and counselors are unfamiliar with the ethical dilemma inherent in their task. The fiduciary relationship between counselor and client creates part of the ethical conflict and the other source of conflict comes from the counselor's obligation towards the court. However there are practical solution for counselor to avert conflict by following basic ethical principles such as honesty, integrity, trustworthiness, loyalty, fairness, concern for others, commitment to excellence and accountability. These ethical principles are by far the most overpowering rationale for professional conflict.

  • Thompson, R. (2003, March, 6). Saving face in the homeowner association. RealtyTimes.

Thompson explains that conflict among homeowners is unavoidable especially in a homeowner association. Most people avoid admitting they are wrong in order to avoid embarrassment and therefore seek litigation to solve their disputes. The problem is that most judges are not familiar with how homeowners associations work; therefore they may offer a solution that is unsatisfactory to both parties. Thompson discusses how Alternative Dispute Resolution (ADR) is a better option for homeowner association disputes versus litigation.