Can I have a mandatory binding arbitration clause in my residential lease?
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Can I have a mandatory binding arbitration clause in my residential lease?
What are the benefits and disadvantages?
Asked on September 11, 2012 under Real Estate Law, Connecticut
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country you can have a binding arbitration provision which is mandatory in your residential lease.
The pros of such a clause is that the dispute gets resolved sooner and typically with less attorney's fees expended.
The negatives are that the mediator's fees are quite expensive, one has no right to a jury trial and essentially one cannot appeal an adverse decision even if the mediator does not follow the law. In essence, one can get stuck with a bad decision and have no legal recourse.
I customarily advise my landlord clients not to have an attorney's fee clause in the lease in that such only gives fodder to the tenant's attorney with respect to a possible dispute.
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