Sometimes the sale of a property is followed by a lawsuit by the new owners because of undisclosed conditions of the property. To prevent this, some buyers and sellers opt to insert an arbitration clause in the final contract. Unless a clause appears in the contract arbitration can’t be initiated unless both parties consent. If the clause does exist and is initialed prior to the sale, consent is automatically given for arbitration. A standard arbitration clause that you can enter your contract should read, ‘This contract is expressly contingent on all parties initializing the Arbitration clause’. Arbitration clauses are usually desired by the buyer but not the seller. The reason for this is that if a buyer discovers a small problem it might not be worth the time and expense of a lawsuit. But with an arbitration clause the headaches and costs are minimized, so they stand a better chance of reaching a settlement with the seller. For more information about arbitration clauses, contact a real estate lawyer in your area.