Real Estate Contract Arbitration

Code of Civil Procedure Part 3, Title 9.4 deals with real estate contract arbitration.

Section 1298 provides that, whenever any contract to convey real property, or contemplated to convey real property in the future, including marketing contracts, deposit receipts, real property sales contracts as defined, leases together with options to purchase, or ground leases coupled with improvements, but not including powers of sale contained in deeds of trust or mortgages, contains a provision for binding arbitration of any dispute between the principals in the transaction, the contract must have that provision clearly titled “ARBITRATION OF DISPUTES.”

Nothing in this section is to be construed to diminish the authority of any court of competent jurisdiction with respect to real property transactions in areas involving court supervision or jurisdiction, including, but not limited to, probate, marital dissolution, foreclosure of liens, unlawful detainer, or eminent domain.

Section 1298.5 states that any party to an action who proceeds to record a notice of pending action cannot waive any right of arbitration which that person may have pursuant to a written agreement to arbitrate, nor any right to petition the court to compel arbitration if, in filing an action to record that notice, the party at the same time presents to the court an application that the action be stayed pending the arbitration of any dispute which is claimed to be arbitrable and which is relevant to the action.

Section 1298.7 provides that, in the event an arbitration provision is included in a contract or agreement covered by this title, it does not preclude or limit any right of action for bodily injury or wrongful death.