Using ADR to Settle HOA Disputes
Dealing with homeowner’s association (HOA) disputes is time-consuming, expensive, and frustrating. In some instances, major disputes grow from minor issues and in no time the entire community is at odds. Alternative dispute resolution methods including arbitration and mediation can be effective tools for settling a variety of HOA disputes, ranging from dues collection to resident disputes to officer elections.
The advantages of using ADR to settle HOA disputes are plentiful and include:
- Flexibility: Participants in arbitration are free to choose the rules of settlement. Mediation participants also enjoy this benefit, as well as deciding the ultimate outcome of the dispute.
- Control: Disputing parties are in control of not just the mediator or arbitrator, but also of certain aspects of the process. This ensures the person that has control over the process has the specialized understanding needed to help reach a resolution.
- Predictability: Litigation has an unpredictable outcome, especially if a jury is involved. ADR removes some of this unpredictability and gives control back to those the resolution affects the most.
- Cost and Time: Mediation and arbitration are less expensive and take less time than litigation. This allows a community to return to its important work and not remain focused over the long haul on a dispute. It also establishes a precedent for future disputes as quickly as possible.
- Privacy: Matters discussed during mediation and arbitration do not become a matter of public record. Usually, only the settlement is put into writing.
- Cooperation: ADR fosters a sense of cooperation. Never is this more important than when disputing parties must continue to live in the same community once a dispute is settled.
Most people report a high degree of satisfaction with mediation and arbitration. It reduces the stress so of community disputes and ensures an HOA dispute will tear apart a community.