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Arbitration clauses in home inspection contracts have traditionally been useful, but with increasing regulation in many states, concerns arise regarding the legal standard of care. Mistakes related to this standard may need to be appealed, but in arbitration, arbitrators' decisions are largely not appealable except in very limited situations. This means the only recourse to challenge a legal error is to demonstrate fraud on the arbitrator's part, a scenario that is rare in legal practice. Therefore, the inability to appeal is a significant factor in deciding whether to utilize an arbitration clause in such contracts. Additionally, it is advisable to consult with your attorney.
