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Arbitration clauses in home inspection contracts have been helpful for many years, but as states implement more regulations, the need to adhere to a legal standard of care has emerged. This creates challenges when mistakes occur in applying that standard. Typically, arbitration decisions are not appealable, except in very limited circumstances, which means that rectifying a legal error made by an arbitrator is difficult. The only way to challenge an arbitration outcome is by proving fraud, which is rarely encountered in practice. The inability to appeal is a significant factor to consider when deciding whether to utilize an arbitration clause, and it’s advisable to consult with an attorney on this matter.
