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Arbitration clauses are commonly found in home inspection contracts and have been beneficial for many years. However, with increasing state regulations and the establishment of a legal standard of care, the ability to appeal arbitration decisions has become a concern. Typically, arbitrators' decisions—including those related to law, evidence, and expert testimony—are not appealable, which limits recourse for mistakes. An appeal is only possible under very narrow circumstances, typically requiring proof of fraud by the arbitrator, something the speaker has not encountered in 20 years of legal practice. Thus, the inability to appeal is a significant factor to consider when deciding whether to use an arbitration clause. It is advisable to consult with your attorney regarding these clauses.
