The Arbitration Clause must be initialled by each party or it does not apply. As a general rule we recommend arbitration if we represent a Buyer but not for a Seller. This is because if the Buyer discovers a small problem, it may not be worth filing a lawsuit against the Seller, but it is easier to arbitrate and cause headaches for the Seller. Regardless of any other factor, many Buyers who later discover defects want to sue. We encourage resolution of disputes without litigation.
Lawsuits are long, expensive, and stressful.
Often they could have been prevented by better paperwork or written disclosures. Sometimes they are inevitable, but settlement is almost always better. A new law allows loan applicants who pay for an appraisal to get a copy. The Buyer wants to buy the property if it meets his conditions. He has time to inspect, reflect, and continue to comparison shop.