• Information on Property Sale and Purchase Arbitration
• Arbitration Procedure
• Documents (arbitration clause and arbitration agreement)

Information on Property Sale and Purchase Arbitration

The resolution or compliance of a sale and purchase or deposit contract cannot be left to follow the slow course justice. Judges are professionals with significant amount of training and professionalism, though, unfortunately, the number of cases per court makes it impossible to comply with the timelines for proceedings. The real estate market is dynamic, which means that developers, builders, buyers and sellers cannot and should not wait for more than two years until a dispute is resolved. It is irrelevant for the parties that the Court has adopted cautionary measures and that the home or premises cannot be sold or disposed of while the proceedings and appeals are pending, because the main issue for both parties is that of time and opportunity. Almost always, people sell in order to buy a bigger house, or because they have got married, are having another child, etc, which means that the delay and legal costs lead to disappointment for buyers, sellers, developers, builders, and, of course, intermediaries.

AEADE has designed an arbitration procedure offering all the legal guarantees, as the arbitrators who resolve the disputes within 45 days are ex-magistrates or lawyers experts in the relevant issues, who provide legal certainty to the arbitration proceedings.
The arbitration by AEADE resolves the disputes derived from sale and purchase and earnest money contracts in a quick, affordable and effective manner, offering all the legal guarantees, as well as reducing conflicts by 40%.



Arbitration Procedure

1.- Presentation of arbitration claim, documents and presentation of evidence (documents and any other evidence which the party considers relevant to exercise their rights, such as questioning, witnesses, experts etc.).
2.- Acceptance of arbitrator (date of initiation of arbitration proceedings).
3.- Transfer of the claim and documents to the respondent for them to defend themselves, reconvene and present evidence.
4.- Presentation of allegations by the respondent, documents and evidence.
5.- Taking of evidence (generally only documents).
6.- Award (sometimes a submission of conclusions takes place). Issued within 40 days of the date of acceptance of the arbitrator.
7.- Legal enforcement of award. Only in cases where the party found at fault does not comply with the award.



Documents (arbitration clause and arbitration agreement)

In order to ease the access of companies to AEADE´s private arbitration, an arbitration clause model has been designed which must be included in sale and purchase and earnest money contracts in order for the arbitration proceedings to be quick, affordable and effective, offering legal certainty to all parties involved.
In the developer-client (consumer) relationship, the parties are recommended to subscribe, independently and optionally, to an arbitration agreement which is not within the general terms and conditions, instead of the attached arbitration clause, as, if it is a general condition, the arbitration clause is considered void, leaving the path clear for court proceedings.