ADVANTAGES AND DISADVANTAGES OF A MANDATORY ARBITRATION PROCEDURE FOR REAL ESTATE. If buyer and seller have agreed in writing to binding arbitration, this means that they are waiving substantial future legal rights in exchange for a relatively quick judgment from the arbitrator, who hears all the evidence and then makes a binding decision. Another disadvantage of arbitration is that arbitral awards are not self-executing. In other words, the winning party may be forced to go to court to confirm the arbitral award that it could use all the usual means to obtain the verdict. 7 1. Where a party to an arbitration agreement initiates proceedings in respect of a matter to be submitted to arbitration under the Agreement, the court before which the proceedings are commenced shall suspend the proceedings at the request of another party to the arbitration agreement. Assuming that a buyer and seller are unable to resolve their after-sales dispute, either through a forced settlement or mediation, where both parties have signed the arbitration clause, the next step is for the buyer`s lawyer to inform the seller of the dispute and the buyer`s wish for binding arbitration in accordance with the sales contract. There are certainly advantages and disadvantages in choosing arbitration; However, there is no single answer that fits all the circumstances. In deciding what is fair, clients should consider whether they are the buyers or sellers, the likelihood of a dispute, the likelihood of a dispute also involving the broker or the buyer`s representative, and the desire for a competitive offer. You should discuss these issues in detail with your broker® and/or a qualified real estate lawyer, well in front of submitting an offer. In February and March 2017, about thirty individuals (the „buyers“) entered into agreements with a construction company (the „seller“) for the purchase and sale of surfaces which should be completed in April 2018. As a result, the court found that the seller would have been entitled to a suspension.
It found that the buyers had not demonstrated that the arbitration agreement was invalid, either because of scruples or undue influence; Since the General Court was not subject to the exception provided for in Article 7(2) of the Law, it found that there was no discretion to refuse the suspension. They also argued that there is an inequality of bargaining power between them and the seller and that the seller took advantage of its dominant position, which led the buyers to enter into grossly reckless and unfair purchase and sale agreements that they considered unscrupulous. We help our clients avoid large areas of risk, including poorly crafted or incomplete purchase and sale agreements, hidden fees, intervention or easement issues, complex concerns such as trust real estate and similar pitfalls. . . .