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I would appreciate any insight people could give me in this. I realize "Talk to a lawyer" is the official answer, but just wanted some insight before I went that route.
We're thinking of buying a new home from a major tract builder. Their contract is the standard boilerplate, but there is a section that basically forces us into Arbitration for any issues. I'm not very comfortable with this.
Does anybody know if this can be taken out, or will the tract builder say "Sign it or don't buy from us?"
Their contract is the standard boilerplate, but there is a section that basically forces us into Arbitration for any issues. I'm not very comfortable with this.
Arbitration is very common these days. Sometimes a court judge will even send your case to arbitration. Its basically a way to work something out before it goes to court, but cheaper for both parties.
PS. Signing anything this complicated, and the most expensive thing you will ever buy in your life without talking to a lawyer is nuts. So yes, talk to a lawyer.
I would appreciate any insight people could give me in this. I realize "Talk to a lawyer" is the official answer, but just wanted some insight before I went that route.
We're thinking of buying a new home from a major tract builder. Their contract is the standard boilerplate, but there is a section that basically forces us into Arbitration for any issues. I'm not very comfortable with this.
Does anybody know if this can be taken out, or will the tract builder say "Sign it or don't buy from us?"
Thanks,
Decades ago, when my H and I bought our first house, we purchased from a major tract home builder. There was a similar clause then. We asked about that and a few others. It was sign it or move on to something else.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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If it says "binding arbitration" that might be one thing. Still cheaper than going to court. The CA standard agreement has an arbitration clause. It's optional, neither party has to sign it and if just one of the parties doesn't it's not enforceable.
I read the Superior Court tentative ruling calendar in my county. 99% of the time, the court asks the contesting parties to consider arbitration. Your exposure to attorneys fees without arbitration could quickly exceed whatever you might want to dispute with the builder.
The answer is pretty simple. Don't expect them to change it but, if you feel like its worth the bluff, negotiate a deal, then tell them you will sign but only if they line it out. Anything is possible but this is probably unlikely. But, before you go for it, you might want to think it over as DMenscha pointed out.
Builders pay a lot more for attorneys than you will pay one to review the contract. They are not going to cross something out of their contract that they paid big bucks to put in there.
In Texas, judges won't hear your case until you can show you tried another form of resolution first.
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