Arbitration
Most arbitration hearings conducted by REALTOR® associations involve questions of contracts between REALTORS®, most frequently between listing and cooperating brokers, or between two or more cooperating brokers. These generally involve questions of procuring cause, where the panel is called on to determine which of the contesting parties is entitled to the funds in dispute.
In the mid 1970’s, the National Association of REALTORS® established Arbitration Guidelines to assist associations in reaching fair and equitable decision in arbitration; to prevent the establishment of any one, single rule or standard by which arbitrable issues would be decided, and to ensure that arbitrable questions would be decided by knowledgeable panels taking into careful consideration all relevant facts and circumstances.
The Arbitration Guidelines have served the industry well for four decades. But, as broker-to-broker cooperation has increasingly involved contracts between listing brokers and buyer brokers and between listing brokers and brokers acting in nonagency capacities, the guidelines were updated to remain relevant and useful. View a full copy of Procuring Cause.
Article 17 of the Code of Ethics
In the event of contractual disputes or specific non-contractual disputes defined in Standard of Practice 17-4 between REALTORS® (principals) associated with different firms, arising out of their relationship as REALTORS®, the REALTORS® shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter.
In the event clients of REALTORS® wish to arbitrate contractual disputes arising out of real estate transactions, REALTORS® shall arbitrate those disputes in accordance with the regulations of their Board, provided the clients agree to be bound by the decision.
The obligation to participate in arbitration contemplated by this Article includes the obligation of REALTORS® (principals) to cause their firms to arbitrate and be bound by any award.
Filing Your Arbitration Request
File your complaint online now with Simple Online Standards (SOS).
The Award
Want to know how the panel will determine the outcome? View the arbitration worksheet your hearing panel will consider during their deliberations.