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Arbitration clauses are common in home inspection contracts and were traditionally beneficial. However, with increasing state regulations establishing a legal standard of care, the ability to appeal mistakes related to this standard becomes crucial. In arbitration, decisions made by arbitrators on legal matters, evidence, and testimony are typically not appealable, except in very narrow circumstances. This means the only recourse for addressing legal errors in arbitration is to prove fraud on the arbitrator's part, which is exceedingly rare. The inability to appeal is a significant factor to consider when deciding whether to utilize an arbitration clause, and it's advisable to consult with a legal expert on this matter.
