In today’s world we are asked to make this one decision all the time. In case of a problem do we want to arbitrate or go to court? This happens all the time in medical offices, credit card applications, real estate purchase agreements, and probably soon in our homes with our spouses and children. Read a recent study that showed that arbitration favors doctors, lenders, etc. about at a 94% level. However, I imagine that if I didn’t agree to arbitrate, I would get no medical service.
There are certain phrases that I have a tough time accepting. “We are here from the Government to help you.” “Arbitration is better for everyone.” “Trust me on this one.” “This is a true story.” Also, if extended warranties are so good for me, why do the companies try to sell them so hard, to lose money, yea.
Extended warranties, insurance on a rental car, and Keno at a Casino are normally losing propositions. But I digress.
Should you mediate or arbitrate on a real estate purchase? Well, mediation is automatic so even if you don’t agree, you will probably be mediating in the future. Should you arbitrate? This is a decision that you should talk over with a professional, ie. attorney. There is no lender/borrower type arrangement here so this could affect your decision. When you start looking to buy or sell real estate, know ahead of time whether you will be arbitrating or not.
Back to the lease. There is no question here. You will not arbitrate on landlord/tenant matters. It is not allowed. It is my opinion that the State Government believes that all tenants and landlords should have their day in court. Just another nuance from your friendly California Leases.