1. Dispute Resolution – North Carolina
a. Binding Arbitration
Disputes arising out of Builder's acts, omissions or responsibilities or Buyer's acts, omissions or responsibilities in connection with the construction of the Home or other improvements on the Property shall, at Builder's sole option, be resolved by arbitration in accordance with the operative sections of Article 45C of Chapter 1 of the North Carolina General Statutes and shall be engaged when either party delivers written notice of demand for arbitration to the other party. A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Notwithstanding any other provision of this Addendum, in any arbitration proceeding between the parties related to the construction of the Home or any other improvements on the Property, either party shall have the right to include, by consolidation, joinder or in any other manner, any person or entity whom such party believes to be substantially involved in any common question of fact or law with respect to such arbitration proceeding. Buyer agrees that any dispute with Builder shall not interfere with Builder's ability to proceed with its construction and that Builder may (but is not obligated to) proceed with its work, subject to the claim of Buyer. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. The award rendered by the arbitrators shall be final, and judgment may be entered upon it in any court having jurisdiction thereof.
b. Procedure for Arbitration
There shall be 3 arbitrators. Within 15 days of the receipt of a written notice of demand for arbitration, each party shall identify, by providing the name, address and telephone number to the other party, an arbitrator selected by them for purposes of resolving the matter which is the subject of the demand, and each party shall notify the arbitrator selected by such party that the arbitrator has been identified and that such arbitrator, acting jointly with the arbitrator selected by the other party, shall be required to select a third arbitrator within 30 days of their selection as arbitrator. If either party fails to identify an arbitrator within such 15 day period, or if the 2 arbitrators selected by the parties fail to select a third arbitrator within such 30 day period, any party may petition any Wake County, North Carolina Superior Court judge to appoint the second arbitrator or the third arbitrator, as applicable, and such arbitrator or arbitrators so appointed shall serve with the arbitrator or arbitrators selected by the parties. Any arbitrator selected hereunder shall be an attorney who is experienced in arbitration and construction law. Arbitration proceedings shall be heard and resolved for the purposes of venue in Wake County, North Carolina. The party filing a notice of demand for arbitration must assert in the demand all claims, disputes or other matters in question then known to that party on which arbitration is permitted to be demanded. The expenses of the arbitration shall be born equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and counsel's fees, except that in the discretion of the arbitrators, any award may include the cost of a party's counsel if the arbitrators expressly determine that the party against whom such award is entered has caused the dispute, controversy or claim to be submitted to arbitration as a dilatory tactic.
c. Governing Law, Jurisdiction
The Purchase Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to conflict of law provisions thereof. Buyer and Builder irrevocably submit to the jurisdiction of any state or federal court sitting in Wake County, North Carolina as having sole jurisdiction over any suit, action or arbitration proceeding arising out of or related to the construction the Home or any improvements on the Property. Buyer and Builder irrevocably waive, to the fullest extent permitted by law, any objection they may now or hereafter have that the venue of any such suit, action or arbitration proceeding brought in any such court and any claim that any such suit, action or arbitration proceeding brought in any such court has been brought in an inconvenient forum. Final judgment in any such suit, action or arbitration proceeding brought in any such court shall be conclusive and binding upon Buyer and Builder and may be enforced in any court to which the losing party is subject to jurisdiction by a suit upon such judgment provided that service of process is effected upon the defendant in such suit as required by law.