More and more, real estate sales contracts contain arbitration clauses. These clauses allow parties to avoid going to court in the event of a dispute between the parties to a sales agreement.

Arbitration takes the form of a private tribunal where the case is heard by one or more arbitrators chosen by the parties.

To initiate the process, the parties must submit an arbitration request to the arbitrator. Upon receiving this request, the arbitrator prepares an arbitration agreement that must be signed by all parties.

The arbitrator then determines the procedural rules. The parties are free to be represented by a lawyer and present their own expert witnesses. Once the proceedings are concluded, the arbitrator issues a written decision that must be reasoned and binds the parties. This decision can be enforced by a court in case of non-compliance.

For information, you are invited to consult the arbitration rules of the Association des notaires arbitres du Québec. Members of the Association are subject to ethical rules.

An exhaustive list of the various situations where an arbitrator may intervene cannot be provided, but here are some examples:

• A dispute arising from a promise to purchase or a business sales contract;
• A dispute between two partners regarding the interpretation of their partnership agreement;
• A dispute between two shareholders regarding the interpretation of their shareholder agreement;
• A dispute arising from a share purchase agreement;
• A dispute between a general partner and a limited partner.

Why let a dispute escalate and become burdened by court proceedings? Arbitration, more than a means, is a more civilized solution to a dispute. Arbitration is a dynamic solution that meets the economic imperatives of today's world, where disputes must be resolved quickly while minimizing costs.

The major advantages of arbitration are confidentiality, speed of resolution, and cost limitation:

• Confidentiality: It is a form of private justice as opposed to public courts.
• Speed of resolution: An arbitrator must be requested by the parties to issue a decision within a short period. This decision is enforceable and non-appealable. In practice, it can be done within six (6) months.
• Cost limitation: As the decision is final and non-appealable, costs are reduced accordingly.

Parties who wish to use an even more flexible form of dispute resolution may be better advised to use mediation.

Due to their training and experience, notaries are specially called upon to be impartial between the parties to a contract. They are required to provide advice so that the decision and consent of the parties are adequately informed. A notary is the appropriate professional to act as an arbitrator in a dispute.

We invite you to submit your arbitration request to Notaire-Direct^®, which will meet your needs.