What about Arbitration?

Arbitration1 In Minnesota, you have the option of choosing arbitration as a way to resolve any future disputes about disclosure of material facts affecting the use and enjoyment of the property you are buying or selling at the time of sale through an Arbitration Agreement.

When both buyer and seller agree to binding arbitration you give up your right to go to court, and agree to resolve disputes by using binding arbitration under the Residential Real Property Arbitration System administered by NCDS (National Center for Dispute Settlement) and endorsed by the Minnesota Association of Realtors.

The administrative fee for the Arbitration System varies depending on the amount of the claim, but it is more than initial court filing fees. In some cases conciliation court, where $7,500 is the maximum claim, is cheaper than arbitration. In some cases, arbitration is quicker and less expensive but the right to appeal an arbitrator’s award is very limited compared to the right to appeal a court decision.

A request for arbitration must be filed within 24 months of the date of closing on the property.

The process usually takes place at the home, with lawyer representation optional.

  • A party who wants to arbitrate files a Demand, along with the appropriate administrative fee, with NCDS
  • NCDS notifies the other party, who may file a response
  • NCDS works with the parties to select and appoint an arbitrator to hear and decide the dispute (arbitrators have backgrounds in law, real estate, architecture, engineering, construction or other related fields)
  • Arbitration hearings are usually held at the home site
  • Parties are notified about the hearing at least 14 days in advance
  • A party may be represented by a lawyer at the hearing if he or she gives 5 days advance notice
  • Each party may present evidence
  • The arbitrator must make any award within 30 days from the final hearing date

This is only a general overview of the process. For more specific information, including fees, visit NCDS online, follow their links below, or call 888-832-4792. Consult a lawyer for legal advice.

The following are some of the reasons people give for choosing arbitration over litigation…

  • It can solve problems rather than simply deciding the dispute
  • It can resolve disputes more quickly
  • It is confidential, not a public proceeding or a matter of public record

Sharlene Hensrud, RE/MAX Results – EmailTwin Cities Realtor

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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3 Responses
  1. Well, arbitration is like an informal court procedure. The arbitrator is selected by the parties or appointed by a judge based upon his/her expertize in the appropriate area of the law. The proceeding are quite relaxed compared to court, although I’d still advise looking your best.

  2. According to my own investigation, thousands of persons in the world receive the loan at various creditors. So, there’s a good chance to find a credit loan in every country.

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