Was there no Title Company involved? Nothing showed up before you purchased? Who was in arbitration, the Seller? Is there a Lien on the property or a Lis Pendens?
I am not a lawyer, but is there is nothing "attached" to the property, like a Lien or Lis Pendens, you should not be dragged into the dispute. If there was something attached to the property it would have shown up in your Title report.