Arbitration -VS- Litigation

Reblogger Jon Quist

Arbitration - VS - Litigation.

Very good subject for a blog. I know we all know about this subject (or certainly should) but it never hurts to have a reminder, and Damion was kind enough to do a post AND insert a link that will take you to a very good explanation of the subject.

Original content by Damien Coles

Arbitration -VS- Litigation:

Let's Settle This Dispute

Although the Real Estate world relies on COMPLETE DISCLOSURE with regards to Real Property, in the unlikely event that a Buyer brings a lawsuit against a Seller for Undisclosed Latent Defects, there are resolution methods in place to ensure that the dispute is handled properly...the question becomes, which route will you go?


Very simply, Litigation is another word for legal proceedings.  Taking a Real Estate Dispute to Court can be costly for both parties to the lawsuit.  Ideally, this is not the first option you should consider, since the judge's ruling may be appealed by either party multiple times, thus potentially dragging the process on, not achieving a "permanent" solution. 


On every one of my Listing Agreements, I allow my Sellers the option to choose this over Litigation.  The same concept applies in that a neutral 3rd party becomes involved to determine exactly what appropriate course of action to take, however, you will find that most Arbitration is SUBSTANTIALLY cheaper than standard Court Proceedings.  Arbitration saves on court costs, lawyer fees, and TIME!!  The only catch is, the final ruling may NOT be appealed, thus achieving that "permanent" solution I mentioned earlier.

This Website does a fantastic job of describing this process futher, as I am NOT a Real Estate Lawyer.

In the case of the Arbitration company that we use here at the office, the typical timeframe for a final ruling will take anywhere from 90 to 120 days, which is WAAAAAY shorter than taking the case to Trial.

As a side note, both parties are required to agree to Arbitration beforehand.

Hopefully this clears a couple things up for Sellers and/or Buyers, because there should be a clause containing this information on the Purchase Agreement!!

Damien M. Coles, Premier Service Realtor

Real Living Kee Realty

58047 Van Dyke, Suite 201, Washington, MI 480894

(586) 246-3838

Don't see something that you would like me to talk about? Let me know and I'll try to include it in my next post!!


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Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

Thanks Jon for re-blogging this. It is an important issue. Emotions run high but beginning to run the clock with lawyers may not be the right answer. A arbitrator may be able to bring a swifter and less costly resolution which will allow all parties to continue their lives sooner.

Apr 06, 2011 05:26 PM #1
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you this is one I will bookmark and keep handy.  Costs in litigation can be great.

Apr 06, 2011 06:41 PM #2
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