What is Arbitration?
Arbitration, a form of alternative dispute resolution (ADR), is a legal technique for the resolution of disputes outside the courts. The parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters,” or “arbitral tribunal”), whose decision (the “award”) they agree to be bound. It is a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides.
SOURCE: National Association of REALTORS®
Diane Disbrow, a REALTOR® and Trainer, highlights the differences between arbitration and mediation as means for resolving disputes between Real Estate Professionals.