Tuesday, August 11, 2009

Trulia Question - Arbitration or Not?

Do most buyers opt for arbitration? Question arose from a buyer who has an offer in to a seller. The seller is requiring the arbitration clause signed or no deal.

Yes, in most contracts, the buyer and seller agree to arbitration. Though this may not be the best solution depending on what transaction and which party you are. By not agreeing to arbitration up front, this does not eliminate the option if a litigious situation occurs - but then both parties must opt for arbitration. By opting for arbitration, then you are forced into that situation without choice. Arbitration is effective in the most part to save money and time, but it very well may limit what you can achieve in a full blow court situation. By the way, most attorneys, who buy homes, don't opt for arbitration, obviously.

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