Is arbitration clause in Listing Agreement binding on one party but not the other?

Asked over 2 years ago - Oakland, CA

Listing agreement has a section for arbitration of disputes between seller and broker. It says "By initialing in the space below, you are agreeing to have any dispute arising out of the matters included in the "arbitration of disputes" provision decided by neutral arbitration..." This section was initialed by one party but not the other. Does this mean the one who DID initial must agree to arbitration if the one who did NOT insists on it? Or is this provision only applicable if both parties initialed it?

Attorney answers (3)

  1. John Noah Kitta

    Contributor Level 19

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    Answered . I have been actively engaged as a real estate attorney for the past 29 years. Originally, I was a real estate attorney for Transamerican Title Insurance Company. Thereafter, I performed legal services for many of your major developers and have represented and sued many of your major local brokers. Our office represents individuals in Buy/Sell transactions on a regular and frequent basis.

    In regard to the fee arbitration agreement, the standard form real estate purchase contract is unquestionable that both parties have to initial the arbitration paragraph for it to be binding. If a dispute arises the person who did not sign could reach an agreement with the other party and still could proceed to arbitration, but as the contract presently sits and strictly interpreted the contract says no one has a right to demand the other party participate in arbitration.

    This participating Attorney does not warrant any information provided, nor are we creating an Attorney-Client... more
  2. Frank Wei-Hong Chen

    Contributor Level 20

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    Answered . No, both parties to the listing agreement must initial the arbitration provision in order for it to be binding.

    Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is... more
  3. Michael Charles Doland

    Contributor Level 20

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    Answered . Both parties must initial for the arbitration to be mandatory.

    The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may... more

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