Contracts
In Washington, a contract that contains an 'arbitration clause' means that disputes between the parties must be:
ASubmitted to the DOL for resolution
BResolved through binding arbitration rather than court litigation, unless the clause provides otherwise✓ Correct
CLitigated only in King County Superior Court
DResolved by the broker who wrote the contract
Explanation
An arbitration clause requires the parties to resolve disputes through the arbitration process (before an arbitrator) rather than through court litigation. Washington courts generally enforce valid arbitration agreements in real estate contracts.
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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.
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