Dispute Resolution in Real Estate Transactions: Examining Factors Determining the Selection of Strategies Used

Abstract

Disputes are inevitable in human interaction during business transactions. There are growing numbers of reported cases associated with disputes in real estate. Disputants always seek for ways to resolve and manage the varying issues arising from these transactions. This study examined the choice of dispute resolution strategies and the factors influencing its adoption in real estate in the bid to provide information capable of promoting peaceful co-existence amongst disputant parties. Structured questionnaires were administered to 60 disputants and 24 real estate firms in Akure, Nigeria and the information collected were analysed using the Mean Item Score (MIS). Findings showed that arbitration, litigation, Ijoko Ojogbon (a weekly TV-series program on land dispute settlement) and palace court are the top three most adopted strategies for real estate dispute resolution in the study location. Litigation, as found out, is being sought when ADR fails to pacify the issue at hand. The traditional strategies of dispute resolution such as Ijoko-Ojogbon and palace court were more prominent among the disputant because the time involved, the verdict enforcement and the cost in obtaining a judgement are relatively cheaper and are adduced as the major factors determining the choice of resolution strategy adopted by the disputants. It is therefore recommended that the crippling formalism and the unnecessary delay involved in litigation should be checked to hasten the resolution process. The traditional strategies of dispute resolution should be widely embraced, while the government at all levels should put up laws that will further empower traditional ADR process.