Contracts
A Florida contract contains a clause requiring disputes to be settled by 'binding arbitration.' This means:
ADisputes go to a regular court first
BThe parties agree to have disputes resolved by a neutral arbitrator whose decision is final and generally not subject to appeal✓ Correct
CThe arbitrator's decision can be appealed to FREC
DOnly financial disputes are covered
Explanation
Binding arbitration clauses require parties to resolve disputes outside of court through a private arbitrator. The arbitrator's decision is binding and final, with very limited grounds for court appeal (fraud, bias, or arbitrator misconduct).
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
State-Specific Concepts
FREC Regulation
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