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Arbitration clauses are common in home inspection contracts and have historically been beneficial. However, as more states implement regulations and establish a legal standard of care, the ability to appeal mistakes related to this standard becomes crucial. In arbitration, decisions made by arbitrators regarding legal issues, evidence, and testimony are generally not appealable, except in very limited situations. The only way to challenge an arbitrator's mistake is to prove fraud, which is rare. This lack of an appeal option is a significant factor to consider when deciding whether to utilize an arbitration clause in contracts. It's also essential to consult with your attorney regarding the implications.
