Arbitration Clauses: Contract for Real Property

• Category: Contracts - Clauses
• State: Multi-State
• Control #: US-C-CL-740-1
• Format: Word; Rich Text

Description

A clause dictates the conditions under which the contract is legally enforceable and determines the terms of the contract. Contracts often contain boilerplate clauses or standard clauses found across most contracts. These standard clauses do not require a lot of negotiation. Included is a Sample Arbitration Clauses for a Contract for Real Property regarding arbitration of disputes and disagreements. If initialed by both sides, this provision binds the parties to arbitrate most disputes that arise under the contract.

Arbitration Clauses: Contract for Real Property are clauses that are included in a contract for real estate transactions, which allow parties to resolve any disputes that arise between them in an alternative dispute resolution process known as arbitration. Arbitration is a type of dispute resolution where an independent third-party (the “arbitrator”) is appointed to review the facts of the case and make a final determination, which is then binding on the parties. There are two main types of Arbitration Clauses: Contract for Real Property: mandatory arbitration clauses and optional arbitration clauses. A mandatory arbitration clause is one that is included in the real estate contract and requires the parties to submit any disputes that arise to arbitration in lieu of litigation. An optional arbitration clause, on the other hand, allows the parties to choose to submit their disputes to arbitration, but does not require it.