Real Estate Purchase Agreements, Continued

A major variable people often do not consider when entering into a purchase agreement is the time permitted to the buyer to bring an action against the seller for lies or misrepresentations.

The standard arbitration agreement, which is completely voluntary, requires claims to be brought within one year. But, the standard statute of limitations to bring claims, in the absence of any agreement truncating that time, is six years.

As such, if you are a buyer, you want to reject the arbitration agreement in order to have more time to live in the home and discovery problems. On the other hand, for the sake of limiting the amount of time you have to worry about being sued, sellers will want the arbitration because it limits the period to bring claims.

There are other variables to keep in mind with the arbitration agreement. This template has not been changed recently, but the changes previously mentioned in Dan's Desk must be read in conjunction with the arbitration agreement.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site.

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