Honoring Integrity: REALTOR® Arbitration Procedures

In the event of a procuring cause dispute or any disagreement between REALTORS® as defined in Article 17 of the REALTOR® Code of Ethics, the emphasis is on amicable resolution. Brokers are strongly encouraged to seek agreement before resorting to arbitration.

However, if a resolution remains elusive, REALTOR® members are obligated to engage in arbitration as part of their membership duties, all before considering legal action. Arbitration proceedings cannot commence until after the closing and up to 180 days post-closing.

Arbitration involves a $500 deposit from each party. Opting for mediation is a viable option, facilitated by a trained ORRA mediator. In the event of a mediated settlement, both parties receive a deposit refund.

Should mediation falter, the arbitration request advances to a hearing, with only the prevailing party eligible for a deposit refund.

For the preparation of a Request and Agreement to Arbitrate, adhere to the following steps:

1. Complete, sign, and date the Request and Agreement to Arbitrate A-1 (inclusive of the A-1 form, the Code of Ethics, and Outline of Procedures for an Arbitration Hearing).
2. Accompany the request with a written timeline summary of the events.
3. Provide supporting documentation, such as copies of listing(s)/sales contract(s), lease agreements, emails, text messages, or any material illustrating your position in the dispute. (Text messages must be printed and in document form).
4. Number each page at the bottom center.
5. Avoid staples, office index tabs, professional binding, 3-ring binders, 2-sided copies, or sticky notes. If highlighting, use only a yellow highlighter.
6. Black and white and/or color copies are acceptable.

Submission can be made via email to the Director of Compliance, [email protected], or through U.S. Mail (Certified Return Receipt is recommended), or in person at our office.

Upon receipt of an arbitration request, the procedure unfolds as follows:

• Mediation services will be offered before the Grievance Committee reviews the arbitration request.
• If mediation is not pursued or is unsuccessful, the Grievance Committee determines whether the issue is subject to arbitration based on the information provided in the “Request and Agreement to Arbitrate” form and any accompanying exhibits or supporting materials.
• If deemed arbitrable, the Request is sent to the Respondent for a reply.
• The Response is forwarded to the Complainant, and a date is set for the arbitration hearing before a panel of the Professional Standards Committee.

For cases involving a potential violation of the REALTOR® Code of Ethics alongside arbitration, a simultaneous filing of an ethics complaint is possible. In such instances, the arbitration procedures precede ethics proceedings and unfold post the arbitration process's conclusion.

Related Downloads

• Code of Ethics
• Arbitration Packet
• Ethics Complaint Form

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If you have any questions please contact the Professional Standards Manager, Director of Compliance, [email protected] or 407.513.7263