What role does mediation play in escrow disputes?

Mediation plays a significant role in escrow disputes by involving a neutral third party who facilitates communication and negotiation between the conflicting parties. The goal of mediation is to help both parties reach a mutually acceptable agreement without imposing a decision on them. This process allows the parties to maintain control over the outcome and encourages cooperation, making it a more flexible and amicable approach compared to arbitration or litigation.

In this scenario, a mediator does not have the authority to make binding decisions; instead, they guide the discussion and help clarify issues, emotions, and interests. By fostering an open dialogue, the mediator assists the parties in finding common ground, which can lead to a resolution that satisfies both sides, thus avoiding prolonged disputes and potential legal action.

Other options provided suggest different conflict resolution mechanisms that either involve imposition of decisions or external authority, which distinguishes them from the collaborative nature of mediation.