Mediation can be binding or nonbinding depending on what?

• A. Always binding
• B. Always nonbinding
• C. Can be binding or nonbinding, depending on terms
• D. Requires a court order

Answer: (C)

The binding nature of mediation comes from the setup the parties agree on. Mediation itself is a facilitated negotiation, not a binding decision-maker. It becomes binding only if the parties sign a written settlement or enter into a mediation agreement that explicitly makes the terms binding and enforceable as a contract. If no agreement is signed, the mediation results aren’t binding and the parties can pursue other remedies. In community association disputes, this means you can have a nonbinding mediation process that simply helps you reach a settlement, or a binding outcome if you attach a signed, enforceable settlement to the process.