Residential Real Property Arbitration Agreement

Either party may, at its sole expense, arrange for a verbaly record of the hearing. Arbitrators and other parties must be notified three (3) days prior to the date of the trial or arbitration. The original minutes must be filed with the arbitrator and copies are provided to all parties at the party`s request. Orders a party who receives a copy to pay the costs. The arbitrator may make any arbitral award that is fair and cheap under the contract. The arbitrator may, at the time of the arbitral award, apportion or evaluate the costs and expenses of arbitration against each party. In the event that administrative fees or expenses are payable, the arbitrator may provide in the arbitral award for payment to NCDS. Each party shall bear its own legal fees. No person may act as an arbitrator in an arbitration process where that person has a financial or personal interest in the outcome of the arbitration. A person appointed as arbitrator shall disclose to NCDS all facts or circumstances that may affect impartiality, including bias or financial or personal interests resulting from the arbitration or from a prior or present relationship with the parties or their counsel.

Upon receipt of such information by the arbitrator or any other source, NCDS shall communicate the information to the parties and, if it deems it appropriate, to the arbitrator. Any party to the arbitration who has a factual objection to service of an arbitrator shall notify NCDS as soon as possible. NCDS decides whether the arbitrator should be disqualified and informs the parties of its decision, which must be conclusive. These rules have been adopted by the National Center for Dispute Settlement (NCDS) to settle disputes between sellers, buyers and licensees who represent or support buyers and sellers arising out of or related to the physical condition of the property that has been the subject of a contract of sale concluded by the parties. These rules apply whenever all parties have signed the Arbitration and Residential Property Arbitration Agreement (the “Agreement”) as presented with a contract of sale or otherwise agreed by all parties. For the purposes of these rules, “all parties” include the buyer, seller, licensee who represents or assists the seller, and the licensee who represents or assists the buyer. These rules shall apply in accordance with the Agreement. They apply to the extent that they are not contrary to the laws in force or to the agreement of the parties. The parties are presumed to have accepted these rules in the form in force at the time of entry into force of the request for arbitration with the NCDS. If the parties settle their dispute in the course of the arbitration proceedings, the arbitrators may, at the request of the parties, set the terms of the settlement agreed in an arbitral award.

Today, most people who buy or sell real estate in California use the residual purchase and sale agreement published by the California Association of Realtors (CA-RPA). While this form of agreement covers the majority of decisions that need to be made, many of its provisions are not clearly understood by buyers and sellers and even their real estate agents. Among these, the “Alternative Dispute Resolution” (ADR) section, which contains two provisions: (1) mediation; and (2) arbitration. 4. Effects of Real Estate Agents – While mediation and arbitration rules may be binding on buyers and sellers, they are not binding on real estate agents or agents involved in the transaction. However, brokers and agents may agree to participate in the ADR procedure if they do so in writing. Her agreement does not make her part of the purchase and sale contract. . . .