Legal Question in Real Estate Law in California
How do I initiate an arbitration?
Hi, I need to know how to initiate an arbitration between myself (buyer) and the seller of a home. I cancelled escrow according to the purchase agreement but the seller will not sign the cancellation instructions to release my deposit back to me. He has no legitimate excuse for not signing. What steps need to be taken to initiate the arbitration? Also, even though both of us initialled the 'arbitration clause', can I just take him to small claims court instead? But more importantly, I need to know how to initiate an arbitration since we both initialled that part of the contract. Thanks for the input.
5 Answers from Attorneys
Re: How do I initiate an arbitration?
Generally, the contract requires you to use small claims if the amount in question is within the jurisdiction of small claims court. There are also statutory penalties of up to $1,000 when someone does not release funds in situations like this.
Re: How do I initiate an arbitration?
File an action in the appropriate Court of Law. The Court has experience in this area, they are well aware of what is going on and will not be so easily fooled or disuaded by an uncooperative seller.
Re: How do I initiate an arbitration?
You are usually required to demand arbitration (follow the language of the contract), you can file a lawsuit if they refuse
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Re: How do I initiate an arbitration?
You will need an attorney. You may contact me.
Re: How do I initiate an arbitration?
These type of arbitrations are least expensive if they are held by your local real estate realtor board. You can also hire a private arbitrator. These arbitrations are generally binding so it is important who you chose as an arbitrator. If you need assistance, please contact me.