What is Arbitration?
Should I Sign the Arbitration Addendum?
The National Center for Dispute Settlement (NCDS) offers real property disclosure dispute resolution services to eligible consumers and is endorsed by the Minnesota National Association of Realtors. You have the right to decide whether to have any disputes about disclosure, affecting the use or enjoyment of the property you are buying or selling, decided by binding arbitration or by a court of law.
By agreeing to arbitration, you give up your right to go to court. The Arbitration Agreement is NOT part of the Purchase and your Purchase Agreement will still be valid whether or not you sign the Arbitration Agreement. In deciding whether to sign the arbitration addendum, whether you are a buyer or seller, you should consider what factors are important to you.
All parties – all buyers, all sellers, and their real estate agents must sign the Arbitration Agreement in order for it to be enforceable. The only exception is if both agents are from the same brokerage.
Deb Newel, of Newel Law Firm, has practiced real estate law since 2004. She has created a publication that shlould answer any questions you may have about arbitration.
Arbitration-Agreement-Brochure-Jan-2018-Newel-Law Arbitration for Residential Real Estate Transactions by Deb Newel
For additional information, you can refer to the website of the National Center for Dispute Settlement, the organization that administers the Residential Real Property Arbitration System.
Once at www.ncdsusa.org, hover over “Consumer” in the navigation menu and click “Rules/Procedures”. At the bottom of the webpage, under the Minnesota National Association of Realtors subheading, you will find links to:
Rules and Procedures for Minnesota Real Property Disclosure Disputes
Fee Schedule for Minnesota Real Property Disclosure Disputes