Legal Question in Real Estate Law in California

Can an California Arbitration judge reverse/overturn the sale after closing to have the seller take back the property ? I sold a property, the buyer accused me not disclosing the dry rot under the windows, and we are going to Arbitration?

I wonder in if the buyer and seller initial the California purchase agreement section 26. B. ARBITRATION OF DISPUTE. if there any dispute or claim, both parties can't go to court and sue but only go for Arbitration?

final question is how much less expensive generally going through Arbitration than the court system?


Asked on 12/08/11, 6:07 pm

2 Answers from Attorneys

Yes, although the likelihood of a recision decision due to some dryrot is very small. More likely, IF you are found to be liable for non-disclosure of known defects, you would be charged with the cost of repairs.

If both parties have initialed the arbitration clause, you can only go to court to compel the other side to arbitrate, if they refuse to comply, and to turn the arbitration award into a judgment if they refuse to satisfy the arbitration award as made. Everything else is done in the arbitration.

It is drastically less expensive, but still not cheap if the stakes are high and it is done right.

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Answered on 12/08/11, 11:21 pm
George Shers Law Offices of Georges H. Shers

If both parties sign and have agreed to binding arbitration then you have agreed to substitute the arbitrator in place of a judge, so the arbitrator can make any decision a judge could. If an award of money can remedy the situation, such as fixing dry rot, then the arbitrator is likely to award money damages and not rescind the entire sale.

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Answered on 12/09/11, 12:51 pm


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