The Exceptional Provisions of Arbitration Related to the Building Pre-sale Act

One of the complex issues related to building pre-sale contracts is determining the nature of the arbitration clause, which the legislator has required the parties to include in the pre-sale contract. Because even though the arbitration clause is included in the said contract by operation of law and according to Article 20 of the Building Pre-sale Law, that the arbitration of the subject of this law will be subject to the rules of civil procedure of public and revolutionary courts, still many issues such as the effect of the non-acceptance of arbitration by one or more appointed arbitrators, the death of one of parties, and the agreement on its termination, etc. are not clear.

The research method in this article was descriptive-analytical.

Ethical Considerations:

 All ethical principles have been followed in writing this article.

Although the arbitration clause is included in the pre-sale contract of the building, this clause is not an arbitration agreement in the common and complete sense and lacks the stage of submitting the matter to arbitration - which is considered the founding document of contractual arbitrations.

The absence of arbitration by prohibition or the death of one of the parties, the impossibility of its termination, and the pre-sale contract of the building is an absolute mandatory arbitration.