A private dispute resolution process in which a neutral arbitrator issues a decision, which may be binding.
Arbitration is a more formal alternative to mediation in which an arbitrator (or panel of arbitrators) hears evidence and arguments from both sides and renders a decision. Binding arbitration produces a decision that is enforceable in court and cannot be appealed except on very narrow grounds (fraud, arbitrator bias, exceeding authority). Non-binding arbitration produces a recommendation that either party can reject and then proceed to court. Many HOA governing documents contain mandatory arbitration clauses for disputes above a dollar threshold. Arbitration is private — the proceedings and outcome are not public record — which is both an advantage (privacy) and a concern (no public precedent).
If your governing documents require binding arbitration, you may give up your right to a jury trial. Read the arbitration clause carefully before purchasing in a community, as it materially affects your legal rights if a dispute arises.
Alternative Dispute Resolution
Non-litigation methods — mediation or arbitration — for resolving HOA disputes.
Mediation
A voluntary process in which a neutral third party helps two parties reach a mutually acceptable resolution.
CC&Rs
Covenants, Conditions, and Restrictions — the primary deed-recorded document governing what owners can and cannot do.
LotWize handles arbitration tracking automatically — along with violations, ARC requests, meeting minutes, and homeowner communications, all in one platform built for self-managed HOAs.
Start 14-Day Free TrialThis page provides general information only — not legal or financial advice. HOA laws vary by state and community. Always consult your governing documents and an HOA attorney for guidance specific to your situation.