What is Arbitration: Understanding Real Estate Vocabulary

Simply put, arbitration is the process that has to do with the arbitrator. The arbitrator is a neutral and fair third party person with whom the buyer and seller agree in advance to abide by. When a dispute occurs that the two parties cannot resolve on their own, the arbitrator makes the decision.

Arbitration is often used as an alternative to going through the courts. In most cases where arbitration is agreed to in MN, the arbitrator will meet at the house rather than a court room. The arbitrator will hear both sides and then make a ruling. There is typically no opportunity to appeal an arbitrators decision.