In 1988, the California Legislature enacted one of the longest, and in many ways one of the most significant, amendments to the California Arbitration Act1 since the adoption of that Act in 1961. Assembly Bill No. 1240, carried by Assemblyman Byron Sher, Democrat of Palo Alto, was introduced on March 3, 1987 under the extra-legislative sponsorship of the California Association of Realtors. Chaptered on September 14, 1988, after significant legislative markup over two sessions, the Bill added to the Act Sections 1298-1298.8, its first provisions dealing expressly with arbitration clauses in real estate contracts. Under Section 1298.8, the provisions of this new enactment became operative, and apply to contracts entered into on or after July 1, 1989.
Francis O. Spalding,
The California Arbitration Act and the 1988 Real Estate Arbitration Amendments: Coming of Age?, 21 Golden Gate U. L. Rev.