When Ignorance is Bliss — Realtor Version
Show me an agent who knows the particulars of Buyer-Seller arbitration, and I’ll show you . . . an agent who’s just gone through arbitration.
Which in turn means they were involved in a deal where the Buyer and Seller were VERY unhappy with one another.
Or should I say, “the Buyer was very unhappy with their Seller”: 99% of post-closing disputes concern an alleged* home defect that the Buyer believes the Seller either actively concealed, or, should have disclosed, but didn’t.
The charitable term for that would be, “Seller errors of (c)ommission.”
After 12+ years in the industry and $75 million (?) in total sales, I’m happy to say that I’m blissfully ignorant of how such proceedings play out.
And hope to stay that way . . . .
Arbitration vs. Litigation
At least in Minnesota, parties to a residential real estate transaction can agree to arbitrate any post-closing issues rather than hire attorneys and litigate.
More than 3/4 of Minnesota home Buyers and Sellers choose arbitration.
My advice to clients, as a former attorney?
Select Arbitration (it’s faster and cheaper), but first and foremost, don’t do anything to get yourself sued — or enter into a transaction with someone you think you’ll have to sue.
See also, “Litigation vs. Arbitration.”
*It’s hardly the case that every aggrieved Buyer wins their arbitration (or lawsuit); it’s not unheard of for a Buyer facing a big repair — that clearly arose subsequent to closing — to file a specious claim against the former owner, to try to “defray” their out-of-pocket expenses.
