CC PACKET 08241999 - Laserfiche WebLink

Home Browse Search

F/Al� ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT This form is approved by the Minnesota Association of Associates Plus,Inc. REALTORS®,which disclaims any liability arising out of use or misuse of this form. ARBITRATION DISCLOSURE You have the right to choose whether to have any disputes about the physical condition of the property that you are Ing or selling decided by binding arbitration or by a court of law. By agreeing to binding arbitration you give up your right to go to;court. By signing the RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT("ARBITRATION AGREEMENT')below,you agree to binding arbitration under the Residential Real Property Arbitration System('Arbitration Systerntad ministered by the American Arbitration Association(AAA)and endorsed by the Minnesota Association of REALTORS®(MAR). The ARBITRATION AGREEMENT is enforceable only if it is signed by all buyers,sellers,listing and selling brokers/agents. The ARBITRATION AGREEMENT is not part of the purchase agreement. Your purchase agreement f will still be valid whether or not you sign the ARBITRATION AGREEMENT. The Arbitration System is a private dispute resolution system offered as an alternative to the court system. It is not government sponsored. The AAA and the MAR jointly adopt the rules that govern the Arbitration System. The AAA and the MAR are not affiliated. Under the ARBITRATION AGREEMENT you must use the arbitration services of the AAA. All disputes about or relating to the physical condition of the property are subject to arbitration under the ARBITRATION AGREEMENT. This includes claims of fraud,misrepresentation,warranty and negligence. Nothing in this Agreement limits other rights you may have under Minnesota Statutes 327A(statutory new home warranties)or under private contracts for warranty coverage. An agreement to arbitrate does not prevent a party from contacting the Minnesota Department of Commerce,the state agency that regulates the real estate profession,about licensee compliance with state law. The administrative fee for the Arbitration System varies depending on the amount of the claim,but it is more than initial court filing fees. In some cases,conciliation court is cheaper than arbitration. The maximum claim allowed in conciliation court is$7,500. This amount is subject to future change. In some cases,it is quicker and less expensive to arbitrate disputes than to go to court,but the time to file your claim and pre-hearing discovery rights are limited. The right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. A request for arbitration must be filed within 18 months of the date of the closing on the property or else the claim cannot be pursued. A party who wants to arbitrate a dispute files a Demand,along with the appropriate administrative fee,with the AAA. The AAA notifies the other party,who may file a response. The AAA works with the parties to select and appoint an arbitrator to hear and decide the dispute. A three-arbitrator panel will be appointed instead of a single arbitrator at the request of any party. The party requesting a panel must pay an additional fee. Arbitrators have backgrounds in law,real estate,architecture, engineering,construction or other related fields. Arbitration hearings are usually held at the home site. Parties are notified about the hearing at least 14 days in advance. A party may be represented by a lawyer at the hearing if he or she gives 5 days advance notice to the other party and to the AAA. Each party may present evidence,including documents or testimony by witnesses. The arbitrator must make any award promptly. The award must be in writing and may require any remedy the arbitrator considers just and equitable that is w' in the scope of the parties'agreement. The arbitrator does not have to make findings of fact that explain the reason for ng or denying an award. The arbitrator may require the party who does not prevail to pay the administrative fee. W This Arbitration Disclosure provides only a general description of the Arbitration System and a general s rview of the Arbitration System rules. If you have any questions about arbitration,call the AAA at(612)332-6545 or consult a lawyer. Copies of the Arbitration System rules are available from the AAA or your REALTOR& THIS IS AN OPTIONAL,VOLUNTARY AGREEMENT. READ THE ARBITRATION DISCLOSURE ABOVE IN FULL BEFORE SIGNING. �R SID�NTIAL ;QL„�F P ARBITAAAj1DNAGREEMENT For the pro y to ted t: ((JJ �L//fj /�� City Of County of 64&9L i State of Minnesota. Any dispute between the und/ersignj pa ie r ny of them,about or relating to the physical condition of the property covered by the purchase agreement dated including claims of fraud,misrepresentation,warranty and negligence,shall be settled by binding arbitration. The American Arbitration Association shall be the arbitration service provider. The rules,then in effect,adopted by the American Arbitration Association and the Minnesota Association of REALTORS®shall govern the proceeding(s). This agreement shall survive the delivery of the deed or contract for deed in the purchase agreement. This agreement is only enforceable if all parties to the purchase agreement and brokers/agents have agreed to arbitrate as acknowledged by signatures below. (Sell Signa e) (Date) (Buyer's Signature) (Date) L)6.E.✓E Lb 1,0/4 (Seller's Printed Name) (Buyer's Printed Name) 9"- (q t g�l Aft (Seller's Signature) (Date) (Buyer's Signature) (Date) S'-LS A t C.o CICL (Se s Printed ame) (Buy s Printed me) roker/A a Date S Ih Brer/oi:;2� � ��kL / ./ (Comps y Name) (Company Name) THE RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT IS A LEGALLY BINDING CONTRACT MN:ADRAA(9/97) BETWEEN BUYERS,SELLERS AND BROKERS/AGENTS. IF YOU DESIRE LEGAL ADVICE CONSULT A LAWYER.