Legal Affairs

When is bilateral mediation permitted?

In principle, a mediator may not act for two parties simultaneously — the prohibition against 'serving two masters'. If you do so nonetheless in a situation where it is not permitted, you can enforce your right...

Published on March 25, 2020 by MKBjuristen.nl
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In principle, a mediator may not act for two parties simultaneously — the prohibition against 'serving two masters'. If you do so nonetheless in a situation where it is not permitted, you may forfeit your right to remuneration from both parties (Article 7:417 of the Dutch Civil Code).

The ban on bilateral mediation

The law prohibits an intermediary from simultaneously mediating for both parties to the same agreement (Article 7:417 of the Dutch Civil Code). The rationale behind this is that you cannot simultaneously represent the interests of two parties with opposing wishes. Anyone who does so risks losing their entitlement to remuneration.

When is it allowed?

Bilateral mediation is possible under certain conditions. Outside of protected situations, professional parties may often agree that the intermediary acts for both, provided this is transparent and both parties consent. The limits vary depending on the situation and the type of agreement.

Additional protection for consumers and homes

The protection is strictest when one of the parties is a consumer, for example when buying or renting a home. If you act as an intermediary for both parties, you are in principle not entitled to remuneration from either party. You cannot simply deviate from this.

This is how you prevent problems

Be transparent in advance about who you are acting on behalf of, record the agreements and any consent in writing, and verify whether you are in a protected situation. In case of doubt, it is wise to choose one party or to seek legal advice.

Frequently Asked Questions

Am I allowed to act as a real estate agent for both the buyer and the seller at the same time?

In the case of a home or a consumer, in principle not, subject to the loss of your wage entitlement. Outside those situations, it is possible under conditions, with consent and transparency.

What happens if I violate the ban?

You may lose your right to wages from both parties (Article 7:417 of the Dutch Civil Code). Wages already paid can be reclaimed.

Can I arrange bilateral mediation contractually?

Outside of protected situations, often yes, provided both parties agree and it is transparent. In protected situations, no.

Want to properly arrange your mediation or cooperation agreements?

Our legal experts clearly document mediation, for example in a cooperation agreement. View our contract lawteam or schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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