The Arbitration Addendum
The most common purchase agreement used in residential transactions in Minnesota is the Minnesota Association of Realtors (MAR) purchase agreement. This purchase agreement refers to an Arbitration Addendum. The Arbitration Addendum allows the parties to the purchase agree to resolve disputes involving defects with the property by arbitration rather than by litigation. In order to be valid all of the parties to the purchase agreement, including the real estate agents, have to agree to arbitration.
Without a written agreement to arbitrate a dispute, no party can be forced to arbitrate the dispute. If all of the parties agree in writing to arbitrate a dispute, the courts will not allow a lawsuit to resolve a dispute.
Many people only look at the cost factor when deciding whether to agree to arbitration or not; however, the decision is actually more complicated. What is the time frame in which a party has to initiate a claim? The shorter the time frame, the more favorable to a defendant. While neither side wants to incur great costs in a dispute, if the potential cost deters claims, a potential defendant would view that as a positive. There are a number of other factors that must be looked at to determine whether it is favorable for you in your situation.
In litigation, it is extremely difficult to be successful without hiring an attorney to represent you. Corporations cannot represent themselves while individuals are allowed to but they are responsible to follow all of the rules that attorneys must follow. In arbitration you are allowed to represent yourself, but depending on the amount in dispute it is often wise to have representation.
Once we understand the facts of the dispute we normally will be able to quote you a flat fee to represent you in the arbitration or litigation action.