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Arbitration clauses are common in home inspection contracts and have been beneficial historically. However, as states introduce more regulations, the need to address legal standards of care arises. In arbitration, decisions regarding law, evidence, and expert testimony are typically not appealable, except under limited conditions. This means that rectifying a legal error in an arbitration ruling is challenging, requiring proof of fraud, which is rarely encountered in practice. The inability to appeal is a significant factor to consider when deciding to use an arbitration clause, and it is advisable to consult with your attorney regarding these implications.
