Arbitration

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.”

The majority of arbitration hearings conducted by Associations of REALTORS^® 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 the Arbitration Guidelines to assist Association 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 nearly two 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 time came to update the Guidelines so they remained relevant and useful.  Click here to view a full copy of Procuring Cause.

The Process – Find out more information before filing your arbitration request. 

• Filing for Arbitration
• Arbitration Request Flow Chart

Forms - Ready to file for arbitration?  Click here to download the Request and Agreement to Arbitrate form.

The Award - Want to know how the panel will determine the outcome?  Click here to view the document your Hearing Panel will consider during their deliberations, the Arbitration Worksheet.