The fate of arbitration
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Do you condone the use of arbitration provisions in real estate purchase agreements? Let us know your story in the comments section below.
- No (66%, 23 Votes)
- Yes (34%, 12 Votes)
Total Voters: 35
Congress has deemed arbitration to be unworthy of Wall Street — so what place does it have in real estate transactions?
Arbitration reconsidered
first tuesday is among the first and most outspoken critics of arbitration as the preferred method of dispute resolution in real estate transaction agreements. We have been consistent and clear on this issue for over 30 years: arbitration is a deeply flawed form of alternative dispute resolution (ADR) that ought to be banished from all real estate purchase agreements.
In addition to its predominance in the real estate trade union “standard” forms, arbitration has wriggled its way into all variety of transaction agreements. The clause has found near universal acceptance and integration into nearly every form we are expected to sign in even the most mundane daily transactions. Indeed, one cannot see a new physician, open a bank account or purchase a vehicle without being expected to sign away their rights to litigate in a court of law.
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About The Author
Jeffery Marino
is an assistant editor and lead on our first tuesday news alerts, specializing in critical economic analysis and its impact on California’s real estate market.
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Brokerage reminder – No place in real estate for arbitration
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Arbitration’s lack of legal precedent
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Arbitrator’s awards: no judicial review unless so stated in arbitration clause
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Alternative arbitration provision in lease agreement unenforceable by property owner when third party is involved
As a California attorney I’ve represented clients in many Arbitrations particularly those arising from construction disputes. I’m in complete agreement with First Tuesday’s assessment and also support use of Mediation rather than Arbitration.
In my experience, many arbitrators appear to be well qualified judging by descriptions of their training, education and experience. However, in reality many don’t have a real understanding of the basics of what they are to arbitrate and render absurd decisions and awards. Then, of course, almost always there is no possibility of judicial review and the losing party has live with that. At times this has been to the advantage of my clients and other times not. Overall, its a badly flawed process to be avoided like the plague!
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it is always a mission to acknowledge the public the realities and facts pertaining to all the legal documentations. and you have been a modal to teach the public their right. but to majority of scared sheeps, it is very hard to wake them up.
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