If I file an arbitration against the seller of my home for a potential undisclosed matter and lose will I be responsible to cover their associated fees?

UPDATED: Oct 1, 2022

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If I file an arbitration against the seller of my home for a potential undisclosed matter and lose will I be responsible to cover their associated fees?

I purchased a home and subsequently discovered black mold in the walls and carpet of basement. The house passed inspection. My neighbor told me of a conversation he had with the seller about working being done to correct water intrusion. The seller told the neighbor he fixed grading, walls and replaced carpet. The grading appears to be fixed we have had no water in since purchase but drywall had mold and carpet/pad had mold and water lines. It was not replaced. I have written them a letter requesting them compensate me for the repairs and they have responded indicating they did not know, disclosed everything but did offer to settle with me for $1,750 I requested $4,502.13, my expenses. I am considering countering and asking for $2,512.13 which will cover sheetrock, wood and carpet repairs. I will eat the fee for professional mold remediation. If they reject and I officially file the arbitration I believe I will win but if I loose what are the repercussions that could come to me?

Asked on March 14, 2018 under Real Estate Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you lose at arbitration, there are no repurcussions unless the other side had put in a counterclaim and wins on it (which does not appear likely given the facts you describe)--though, of course, you will incur any legal and arbritration costs (the two parties generally share the cost of the arbitration) without getting anything back. Note that arbitration is genenally not appealable the same way court cases are: if you lose, it is typically final.

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