Lease dictionary
Arbitration clause
A clause requiring disputes to go to a private arbitrator instead of court.
An arbitration clause says that if you and the landlord disagree - over the deposit, repairs, anything - the dispute goes to a private arbitrator rather than a judge. Arbitration is faster but usually has no jury, limited appeals, and outcomes that skew toward repeat players (landlords).
Enforceability varies: some states limit forced arbitration in residential leases, and clauses that make you pay heavy arbitration fees are often challengeable.
Watch out
An arbitration clause can quietly take small-claims court - the renter's best venue for deposit disputes - off the table. It's worth negotiating out.
See it in action
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