You’ve bought or sold your home and now you have to decide if you want to agree to arbitration. But what is arbitration and is it right for you?
Definition. Arbitration permits the parties and the arbitrator, as the decision maker, to observe the damage or defects for themselves. This is particularly useful in determining whether a seller knew or should have known of defects which were not disclosed or in determining whether a buyer should have been reasonably expected to discover defects which were not disclosed.
Arbitration Pays Off. Arbitration, like District Court, provides the parties with the remedies of specific performance, rescission and money damages without a limit, but for less cost than District Court or Conciliation Court followed by a Conciliation Court appeal.
Arbitration Saves Time. An arbitration hearing can be scheduled in 8-12 weeks, like Conciliation Court, but without the $7,500 limit on money damages which applies in Conciliation Court.
Arbitration is Flexible. Parties to arbitration have a choice in determining whether or not they wish to be represented by an attorney and should be advised of this choice. It is not advised to appear in District Court or in a Conciliation Court appeal without an attorney.
If you’re still not sure if arbitration is right for you, contact an attorney or the American Arbitration Association at (612) 332-6545.