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Arbitration clauses are common in home inspection contracts and have traditionally been beneficial. However, with increasing state regulations establishing a legal standard of care, the inability to appeal arbitration decisions presents a concern. Typically, arbitration outcomes related to law, evidence, and testimony are not subject to appeal except in rare situations, such as proving fraud by the arbitrator—an occurrence that is extremely rare according to the speaker's 20 years of legal experience. This limitation on appeal rights is a significant factor to consider when deciding whether to utilize an arbitration clause in contracts. It is advised to consult with legal counsel regarding this matter.
