Legal Question in Real Estate Law in New Mexico
arbitration agreement
Can a home builder force you to sign an arbitration agreement? The builder's agreement says it is voluntary but you are required to sign the agreement as part of their home purchase contract. Otherwise they will not agree to the contract. The bicameral Arbitration Fairness Act of 2007 amends the Federal Arbitration Act to make pre-dispute agreements to arbitrate employment, consumer, franchise, or civil rights disputes unenforceable. Do we need to worry about signing their arbitration agreement? Are we being forced to give up any rights?
1 Answer from Attorneys
Re: arbitration agreement
From the facts you provide the agreement to arbitrate is voluntary on your part. You have no obligation to enter the contract at all. You are free to reject this builder and seek out another who does not require arbitration. You are also free to negotiate with your present builder to eliminate the arbitration provision, although he may not agree. If, however, you choose to proceed under the contract you have described, then you are choosing to voluntarily enter an agreement which requires arbitration, and you will be bound by that provision. In such a situation you will give up your right to resort to the courts for initial dispute resolution should problems arise. Bottom line, if you don't want to arbitrate don't sign the contract.
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