How is a mediated real estate settlement made binding?

A settlement reached in mediation becomes binding when the parties sign a written settlement agreement memorializing the terms preferentially before they leave the session. Option may be a signed term sheet with specific dates to finalize settlement agreement Once signed, that agreement is an enforceable contract. If a lawsuit has already been filed, the parties typically file the agreement or a stipulation with the court, and the court may enter an order or final judgment reserving jurisdiction to enforce the settlement agreement often not filed in the public record. It is important that the written agreement address the specifics — who signs what documents, deadlines for performance, how the deposit is disbursed, and who bears closing costs — because an incomplete term sheet is a common source of later disputes.