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Home Warranties and When to Discuss Arbitration

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Typically, there are three scenarios when the subject of arbitration may arise.

The first is during a general discussion of the warranty process with a homeowner or builder. In this scenario, the homeowner or builder brings up the topic of arbitration as it’s shown in the warranty booklet, and requests clarification on the process. The 2-10 Home Buyers Warranty (2-10 HBW) Warranty Administration (WA) department stresses that in most cases, arbitration is pursued only as a last resort. 2-10 HBW WA will use all efforts to assist with a resolution before pursuing arbitration.

The second scenario is during the course of working an active warranty complaint file. If the parties have been unable to reach a mutual resolution, despite 2-10 HBW WA’s conciliation assistance, the 2-10 HBW WA Specialist may suggest arbitration – as the warranty booklet states it is the method for the final resolution of disagreements and disputes. Keep in mind, some builders and homeowners have already attempted resolution for several weeks, months or even years before the dispute becomes a warranty complaint. Therefore, the topic of arbitration is discussed when all efforts from 2-10 HBW WA reach an impasse.

The final instance where arbitration may be addressed is if a dispute may possibly end up in litigation. Most commonly, the homeowner states his or her intention to consult an attorney and pursue the builder in court. It is necessary for 2-10 HBW WA to reinforce arbitration as the final, binding method of dispute resolution delineated in the warranty contract.

In all scenarios, 2-10 HBW WA works towards reconciliation in the hopes of achieving a mutually acceptable resolution and avoiding arbitration!