Rental Agreement Arbitration Clause for the United States

Rental Agreement Arbitration Clause Template for United States

A Rental Agreement Arbitration Clause is a legal provision within a rental agreement that requires disputes between landlord and tenant to be resolved through arbitration rather than court litigation. This document, governed by U.S. federal and state laws, particularly the Federal Arbitration Act, establishes the framework for alternative dispute resolution, including the scope of arbitrable matters, selection of arbitrators, and procedural requirements.

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What is a Rental Agreement Arbitration Clause?

The Rental Agreement Arbitration Clause is essential for property owners and managers seeking to minimize litigation costs and expedite dispute resolution. This document is commonly used in both residential and commercial rental contexts across the United States, where it must comply with both federal arbitration laws and state-specific landlord-tenant regulations. The clause typically includes provisions for arbitrator selection, cost allocation, and specific procedures for initiating and conducting arbitration proceedings. It's particularly valuable in jurisdictions with congested court systems or where privacy in dispute resolution is desired.

What sections should be included in a Rental Agreement Arbitration Clause?

1. Parties: Identification of landlord and tenant

2. Background: Context of the arbitration agreement within the rental relationship

3. Definitions: Key terms used in the arbitration clause including 'Arbitration', 'Dispute', 'Award'

4. Agreement to Arbitrate: Core provision establishing mutual agreement to arbitrate disputes

5. Scope of Arbitration: Specific matters subject to arbitration and any excluded matters

6. Arbitration Procedures: Process for initiating and conducting arbitration including selection of arbitrator

7. Governing Law: Specification of applicable federal and state laws governing the arbitration

What sections are optional to include in a Rental Agreement Arbitration Clause?

1. Class Action Waiver: Optional waiver of right to participate in class actions, used in jurisdictions where permitted

2. Opt-out Provisions: Terms allowing tenant to opt out of arbitration within specified timeframe, included to strengthen enforceability

3. Cost Allocation: Specific provisions for how arbitration costs will be shared between parties

4. Severability: Provision stating that if any part of the clause is found unenforceable, remaining portions remain valid

What schedules should be included in a Rental Agreement Arbitration Clause?

1. Schedule A - Arbitration Rules: Detailed procedures and rules governing the arbitration process

2. Schedule B - Opt-out Form: Standard form for tenants to opt out of arbitration provisions

3. Schedule C - Fee Schedule: Breakdown of potential arbitration costs and their allocation between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Federal Arbitration Act (FAA): Primary federal law governing arbitration agreements in the United States, establishing the enforceability of arbitration provisions in contracts involving interstate commerce

Fair Housing Act: Federal law prohibiting discrimination in housing transactions, which must be considered when drafting arbitration clauses in residential rental agreements

Americans with Disabilities Act: Federal law protecting rights of individuals with disabilities, which may impact accessibility requirements in arbitration proceedings

State Arbitration Statutes: State-specific laws governing arbitration procedures and requirements, which may supplement or modify federal arbitration rules

State Landlord-Tenant Laws: State-specific regulations governing the relationship between landlords and tenants, including rights, obligations, and dispute resolution procedures

State Property Laws: Laws governing real property rights and obligations within the specific state jurisdiction

State Consumer Protection Laws: State-specific regulations protecting consumer rights, which may affect the enforceability of arbitration provisions

Unconscionability Doctrine: Legal principle that prevents enforcement of contracts that are unreasonably favorable to one party and unfair to the other

Contract Formation Requirements: Basic legal principles governing formation of valid contracts, including offer, acceptance, and consideration

AT&T Mobility LLC v. Concepcion: Supreme Court case upholding the enforceability of class action waivers in arbitration agreements

Rent-A-Center West v. Jackson: Supreme Court case addressing the delegation of gateway issues of arbitrability to arbitrators

Doctor's Associates, Inc. v. Casarotto: Supreme Court case establishing that state laws cannot single out arbitration provisions for special treatment

Arbitrator Selection: Requirements for fair and neutral selection of arbitrators in dispute resolution processes

Cost Allocation: Guidelines for fair distribution of arbitration costs between parties

Venue Selection: Rules governing the choice of location for arbitration proceedings

Class Action Waivers: Provisions that prevent parties from participating in class action lawsuits, requiring individual arbitration instead

Severability Provisions: Clauses ensuring that if one part of the arbitration agreement is found invalid, the remainder can still be enforced

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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