HOA glossary · A
Alternative Dispute Resolution (ADR)
What is Alternative Dispute Resolution (ADR) in an HOA?
Alternative Dispute Resolution (ADR) includes mediation or arbitration as ways to resolve conflicts without going to court. Mediation involves a neutral third party helping both sides reach a voluntary agreement, while arbitration is more formal and results in a binding decision made by an arbitrator.
Why is ADR important?
It saves legal costs and preserves community relationships. In some states, it’s required before formal litigation. Common issues handled through ADR include architectural violations, noise complaints, or disagreements over rule enforcement, disputes that benefit from faster, less adversarial resolution.
How can you use “ADR” in a sentence?
The board opted for ADR to resolve a dispute over unauthorized landscaping changes rather than going to court.
Related terms
- Dispute ResolutionDispute resolution gives HOAs a structured way to resolve conflicts between homeowners and the board, promoting fairness.
- Board ResolutionAn HOA board resolution is an official decision made by the board to address issues, approve actions, or set policies for the community.
- Due ProcessDue process requires HOAs to follow fair, consistent procedures when enforcing rules and imposing penalties on residents.
- Community Association ManagerA community association manager oversees daily operations for homes, condos, or townhomes governed by a homeowners association.
