2009 California Code of Civil Procedure - Section 1298-1298.8 :: Title 9.4. Real Estate Contract Arbitration

1298.  (a) Whenever any contract to convey real property, or
contemplated to convey real property in the future, including
marketing contracts, deposit receipts, real property sales contracts
as defined in Section 2985 of the Civil Code, leases together with
options to purchase, or ground leases coupled with improvements, but
not including powers of sale contained in deeds of trust or
mortgages, contains a provision for binding arbitration of any
dispute between the principals in the transaction, the contract shall
have that provision clearly titled "ARBITRATION OF DISPUTES."
   If a provision for binding arbitration is included in a printed
contract, it shall be set out in at least 8-point bold type or in
contrasting red in at least 8-point type, and if the provision is
included in a typed contract, it shall be set out in capital letters.
   (b) Whenever any contract or agreement between principals and
agents in real property sales transactions, including listing
agreements, as defined in Section 1086 of the Civil Code, contains a
provision requiring binding arbitration of any dispute between the
principals and agents in the transaction, the contract or agreement
shall have that provision clearly titled "ARBITRATION OF DISPUTES."
   If a provision for binding arbitration is included in a printed
contract, it shall be set out in at least 8-point bold type or in
contrasting red in at least 8-point type, and if the provision is
included in a typed contract, it shall be set out in capital letters.
   (c) Immediately before the line or space provided for the parties
to indicate their assent or nonassent to the arbitration provision
described in subdivision (a) or (b), and immediately following that
arbitration provision, the following shall appear:

"NOTICE:  BY INITIALLING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE
ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION
OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY
CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO
HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALLING
IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO
DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED
IN THE "ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT
TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED
TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL
PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."

   "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT
DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF
DISPUTES' PROVISION TO NEUTRAL ARBITRATION."

   If the above provision is included in a printed contract, it shall
be set out either in at least 10-point bold type or in contrasting
red print in at least 8-point bold type, and if the provision is
included in a typed contract, it shall be set out in capital letters.
   (d) Nothing in this section shall be construed to diminish the
authority of any court of competent jurisdiction with respect to real
property transactions in areas involving court supervision or
jurisdiction, including, but not limited to, probate, marital
dissolution, foreclosure of liens, unlawful detainer, or eminent
domain.
   (e) In the event an arbitration provision is contained in an
escrow instruction, it shall not preclude the right of an
escrowholder to institute an interpleader action.

1298.5.  Any party to an action who proceeds to record a notice of
pending action pursuant to Section 409 shall not thereby waive any
right of arbitration which that person may have pursuant to a written
agreement to arbitrate, nor any right to petition the court to
compel arbitration pursuant to Section 1281.2, if, in filing an
action to record that notice, the party at the same time presents to
the court an application that the action be stayed pending the
arbitration of any dispute which is claimed to be arbitrable and
which is relevant to the action.

1298.7.  In the event an arbitration provision is included in a
contract or agreement covered by this title, it shall not preclude or
limit any right of action for bodily injury or wrongful death, or
any right of action to which Section 337.1 or 337.15 is applicable.

1298.8.  This title shall become operative on July 1, 1989, and
shall only apply to contracts or agreements entered into on or after
that date.