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Mediation is favored in real estate disputes primarily due to its private and less formal nature. Unlike litigation, which takes place in open court and is a formal legal process, mediation occurs in a confidential setting where the parties can discuss their issues with the help of a neutral third-party mediator. This setting allows for open communication, often leading to creative solutions that might not be possible in a court-based dispute.

The informal context of mediation tends to encourage collaboration between the parties, fostering an environment where both sides feel more comfortable expressing their views and interests without the pressure of courtroom formality. This aspect of mediation not only preserves relationships but also often results in faster resolutions compared to the drawn-out nature of litigation.

In contrast, some options, such as guarantees of favorable outcomes or assertions about cost-effectiveness, do not accurately reflect the nature of mediation. While it can sometimes be more economical than litigation, this is not universally true and can vary widely based on the specifics of each case. Additionally, mediation does not promise a favorable outcome for either party but rather aims to help them reach a mutually agreeable resolution.