Parties to real estate transactions (which include purchase and sale agreements, financing, leasing and exchanges) are using binding arbitration as a preferred method of dispute resolution for a multitude of reasons (which include privacy, quicker resolution and potential cost savings). It is therefore important for parties who are drafting arbitration provisions or signing documents containing them to pay attention to detail. Otherwise, there can be some undesirable repercussions (e.g., an unenforceable arbitration provision, an inability to utilize discovery, or the danger of not requiring the arbitrator to comply with California evidence laws).
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