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Arbitration clauses are commonly found in home inspection contracts and have been beneficial historically. However, as states implement regulations and establish a legal standard of care, it becomes crucial to assess the ability to appeal mistakes related to this standard. In arbitration, decisions made by arbitrators regarding law, evidence, and testimonies are largely non-appealable unless under very limited circumstances, with fraud being the only basis for appeal. This raises concerns, as fraud by arbitrators is rare. The inability to appeal a legal mistake in arbitration is an essential factor to consider when deciding whether to utilize an arbitration clause in contracts. Checking with legal counsel is advisable.
