Let's talk about the Arbitration Disclosure. ARBITRATION IS OPTIONAL.
Arbitration is a private, alternative dispute resolution process that does not involve the court system. Residential real property arbitration encompasses all disputes related to disclosure of material facts affecting the use or enjoyment of the property purchased, with the exception of title issues.
Arbitration is often a quicker, cheaper, and simpler means of resolving disputes for buyers and sellers. Parties should be aware, however, of a number of significant differences between use of the arbitration and litigation systems to resolve a dispute, including the following:
The initial cost of filing a claim is higher for arbitration than for filing a lawsuit.
The time deadline for filing an arbitration claim is more limited than in litigation.
The probable length of time from filing a claim until an award or decision is made is often much shorter in arbitration than when litigating a dispute.
The site of the arbitration hearing is usually at the subject property.
Appeal and pre-hearing discovery rights in arbitration are very limited.
PLEASE REVIEW the Arbitration FAQ to assist in making the decision whether to consent to arbitration for resolution of disputes over property condition.