Mitigating Risk Impact of Disputes on Real Estate Business and Investment in Lagos: The Alternative Dispute Resolution (ADR) Approach
The occurrence of disputes in various forms of human interactions has increased in complexity and has assumed a disturbing dimension in recent times. Due to uncertainty surrounding dispute resolution through litigation, professionals in the various disciplines are always seeking for alternative and innovative ways through which risk of disputes that arise in the course of business transactions and professional activities can be resolved without recourse to litigation. The objective of the study therefore is to examine the impact of dispute as an emerging risk factor in real estate business and investment and the adoption of Alternative Dispute Resolution techniques as innovative approaches to real estate investment and management dispute resolution thereby mitigating dispute risk impact on real estate investment. Utilising content analysis of cases in real estate investment sourced from the High Court of Lagos State, some ADR centres and consultant Estate Surveyors and Valuers in Lagos State, results showed among others that there were huge loss of investment in real estate, tribal tensions, discrimination and damaged business relationships when ADR frameworks were not involved in disputes resolution. The study has recommended among others that ADR should be enshrined in all real estate management and investment contracts and that all the stakeholders in real estate business should take advantage of the flexible multi level ADR clauses to better the chances of dispute resolution along the real estate value chain.