Posted on: 12th Oct, 2006 01:49 pm
need help about binding arbitration
before I bought the house I had done title search with one title insurance company. They gave me a title report which was a preliminary one and it all seemed to be ok in it. But after I purchased the home I found a $30,000 title lien which was also not mentioned in the title policy. When I approached them for the payment they were not ready to give any amount to me. I consulted a attorney who suggested to sue them for that and when I informed the company that I would be suing them they told me that there was clause about binding arbitration.
I am not able to understand what it is. please help
Avedon
before I bought the house I had done title search with one title insurance company. They gave me a title report which was a preliminary one and it all seemed to be ok in it. But after I purchased the home I found a $30,000 title lien which was also not mentioned in the title policy. When I approached them for the payment they were not ready to give any amount to me. I consulted a attorney who suggested to sue them for that and when I informed the company that I would be suing them they told me that there was clause about binding arbitration.
I am not able to understand what it is. please help
Avedon
Hi,
Let me explain what they mean that there was a clause for binding arbitration.
When you got your title insurance policy you should have checked it properly taking help from an attorney about its contents. There must have been a clause that if any claims or disputes arise then it will be solved through binding arbitration.
A binding arbitration states that any third party called the arbitrator will decide about any arising disputes for the involved parties and the court will not be involved in deciding over the dispute. The decision put by the arbitrator can not be appealed against also.
Thanks
James
Let me explain what they mean that there was a clause for binding arbitration.
When you got your title insurance policy you should have checked it properly taking help from an attorney about its contents. There must have been a clause that if any claims or disputes arise then it will be solved through binding arbitration.
A binding arbitration states that any third party called the arbitrator will decide about any arising disputes for the involved parties and the court will not be involved in deciding over the dispute. The decision put by the arbitrator can not be appealed against also.
Thanks
James
Hi,
Let me add that at the time you got the preliminary title report if it had provided a notice that a copy of the actual title policy can be viewed at the company's office then you will not have any recourse from the fact that the claim will be decided by binding arbitration only.
If on the other hand there was no such mention that the title policy can be checked at the time preliminary report was given then you can go to court and argue that you were not provided information about the clause before you obtained your policy.
Thanks
Colin
Let me add that at the time you got the preliminary title report if it had provided a notice that a copy of the actual title policy can be viewed at the company's office then you will not have any recourse from the fact that the claim will be decided by binding arbitration only.
If on the other hand there was no such mention that the title policy can be checked at the time preliminary report was given then you can go to court and argue that you were not provided information about the clause before you obtained your policy.
Thanks
Colin
Hi,
In binding arbitration the two parties agree upon an arbitrator who is decided as per the terms mentioned for such a clause in the agreement. Sometimes it may also happen that the chosen arbitrator may be influenced to favor the company and may not be completely neutral in his decisions.
"If on the other hand there was no such mention that the title policy can be checked at the time preliminary report was given"
If what Colin said is what actually happened then it would be much better in your part as then you would be able to sue the company for your claims which actually resulted because of their fault.
Thanks
In binding arbitration the two parties agree upon an arbitrator who is decided as per the terms mentioned for such a clause in the agreement. Sometimes it may also happen that the chosen arbitrator may be influenced to favor the company and may not be completely neutral in his decisions.
"If on the other hand there was no such mention that the title policy can be checked at the time preliminary report was given"
If what Colin said is what actually happened then it would be much better in your part as then you would be able to sue the company for your claims which actually resulted because of their fault.
Thanks
Hi Avedon,
What I know about binding arbitration is that it is a judgment given by a third party regarding any dispute between two other parties. Perhaps the title company will ask you to wait till a third party appointed by them provides such a judgment. The clause actually gives them the rights to consult a third party for the judgement regarding the title lien.
Thanks,
Sara
What I know about binding arbitration is that it is a judgment given by a third party regarding any dispute between two other parties. Perhaps the title company will ask you to wait till a third party appointed by them provides such a judgment. The clause actually gives them the rights to consult a third party for the judgement regarding the title lien.
Thanks,
Sara