Arbitration (from Investopedia dictionary) is defined as:
An informal hearing regarding a dispute. The dispute is judged by a group of people (generally three) who have been selected by an impartial panel. Once a decision has been reached, there is no further appeal process.
Speed is an important aspect to winning in business and real estate investing. Having a step ahead in the game is a key to success. Litigation is a great way to get mired down. It is costly in terms of time, money and focus. Can you imagine the shift in focus when you get served a petition? Ignoring it is the last thing you want to do – it must be dealt with.
Disputes, however, are common place. The truth is, confusion over the true nature or expectations of an agreement is often revealed much later than one would like – and sometimes someone’s true colors have surfaced far too late to avoid conflict.
As a consequence, I urge you to consider using binding arbitration in any agreement you enter into where it is allowed by law. It may not be available in the landlord tenant arena in your state – so as always consult with counsel before acting on my opinion.
So if you are interested in using this approach note the following advantages:
5 Advantages to Arbitration
In my book, this is one of the most important reasons to use arbitration. If there is a genuine dispute to the facts of how an outcome should be resolved, arbitration will shave many months or even years it will take to get certainty of the outcome
2. Subject Matter Experts Deciding Outcome
The parties to the agreement will be in position to identify …read more