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Arbitrator's are not required to follow the law. I would never sign an arbitration agreement again when it comes to buying a home.
If your builder forces you to sign one, find a different builder.
Arbitration is a good first step to reduce stress on the court system but you should have the right to appeal. Your arbitrator may be having a bad day and fails to consider a 36 page write up from your attorney of all the laws that were broken.
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