Legal Question in Real Estate Law in California

Is the "Arbitration of Disputes" clause in California Association of Realtors' "California Residential Purchase Agreement" (4/10 version) self executing? A couple of realtor Web sites say the RPA arbitration clause IS self executing, but I'm doubtful and I'd rather get a lawyer's opinion.


Asked on 6/16/14, 9:23 am

1 Answer from Attorneys

Self executing is not one of the most clear terms in the law, but I would say the 4/10 edition is NOT self executing as I use that term. The way I use that term is to mean an agreement that either party can enforce without resort to legal action. AAA and JAMS rules have provisions for arbitration to go forward without the other party if one party demands it and follows the rules for moving the arbitration forward. So an agreement that provides with arbitration in accordance with those rules would be an example of a self executing arbitration clause, to me. The CAR CRPA does not appear to have a mechanism for forcing the arbitration forward against an opposing party who refuses to cooperate. Thus a court proceeding for an order to compel arbitration could well be necessary. As I use the term, that is not self executing. Although you don't ask, the mediation clause on the other hand is self executing, because if a party refuses to comply with it, the other party can go straight forward to arbitration and the uncooperative side loses their rights to attorneys fees even if they win. So it does not delay the proceedings and it has an automatic penalty. To me that is self-executing.

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Answered on 6/16/14, 1:47 pm


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