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Does your association have a mandatory arbitration clause?

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Many newer condominium association Declarations contain what is known as a mandatory arbitration clause.  The clause requires that any owner issues or claims against the Board be addressed through arbitration.  The results of the arbitration can be entered in court if the matter progresses to a legal battle. 

The purpose of the clause is to reduce the number of association matters that end up in the legal system and to reduce legal fees for associations and owners.  If an owner brings a case to court and it is determined that they did not comply with the arbitration requirement, the suit would most likely be dismissed.  Also, if an owner files suit after the matter has been addressed through arbitration (because they are unhappy with the result), the association can present the arbitration results as evidence and again, seek a dismissal.

Adding this clause to your Declaration, if it does not exist, requires an amendment.  For more information about amendments, please contact a Condo Law Attorney.