In Minnesota home buyers and sellers are required to decide if they want to use binding arbitration to settle future disputes over real estate they are buying or selling. New this year, arbitration will only apply to claims for more than $15,000, smaller claims should go to conciliation court.
This year 20 pages have been added to the Minnesota purchase agreement explaining arbitration. The purchase agreement without the arbitration disclosure is 13 pages long after a page about wire fraud was added on August 1st.
Home buyers and sellers should be prepared to learn all about arbitration. It is a Minnesota thing.
After reading all of the pages of the arbitration disclosure my understanding of it is about the same as it was before I read the 20 pages. There is something about that legal style of writing that makes it hard to follow.
Going forward I think I will give my clients the arbitration disclosure early on in the process because consumers need to understand arbitration and make an informed decision.
It is also important to learn about lead-based paint, we have a pamphlet for that and about radon, we have a disclosure for that.