A residential remodel contract for a four-unit building contains a mandatory arbitration clause. Under B&P §7191, the clause must:

Explanation

B&P §7191(a) requires an arbitration provision in a contract for work on residential property of four or fewer units to be clearly titled 'ARBITRATION OF DISPUTES' and, in a printed contract, set in at least 10-point roman boldface — or in contrasting RED print in at least 8-point roman boldface. In a typed contract it must be in capital letters. (a) is the trap: 8-point boldface is permitted only when the print is a contrasting red, never in ordinary black. (c) invents an approval step; the Registrar does not review private contract forms. (d) inverts §7191(c): a non-compliant clause is unenforceable against everyone EXCEPT the licensee, so it is the owner who escapes it, not the contractor, and both parties still initial a compliant one.