With a real estate market in recovery and booming, litigation is multiplying. Today`s article focuses on one key provision in the most common real estate contract: the arbitration clause. Readers on the first Tuesday can download free RPI forms here that are legal in California real estate transactions. A recent decision was taken by a house-building company to stay proceedings against it in favour of arbitration after being sued by 30 people in a purchase and sale of pre-construction housing. – Should you choose arbitration or not? There is not a single correct answer to this question and it should not be treated like another initialization box, even if your real estate agent offers it. There are certainly pros and cons for both decisions. Many people think it is professional for arbitration procedures to be faster and therefore less expensive. In general, arbitration will lead the parties to a much faster conclusion than legal proceedings and will allow the parties to avoid multiple preliminary proceedings that could increase attorneys` fees. On the other hand, many others consider it a scam that they waive the right of jury and appeal with arbitration. In addition, the costs of a faster procedure can be eliminated by the arbitrator`s payment fee by the hour. Therefore, the decision whether or not to choose an arbitration procedure often depends on the comfort zone of that party depending on the risks they may face when buying or selling real estate. Buyers and sellers should read and understand the intermediation clause carefully before agreeing to accept it.

Assuming that a buyer and seller are unable to resolve their after-sales dispute, either through a forced settlement or mediation, where both parties have signed the arbitration clause, the next step is for the buyer`s lawyer to inform the seller of the dispute and the buyer`s wish for binding arbitration in accordance with the sales contract. Another disadvantage of arbitration is that arbitral awards are not self-executing. In other words, the winning party may be forced to go to court to confirm the arbitral award that it could use all the usual means to obtain the verdict. Arbitration is often quite informal. After hearing all the evidence, the arbitrator usually adopts a binding decision in writing, which may then cause the winning party to seize or confirm in the district court, just like a regular court decision. . . .

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