Arbitration is an alternative dispute resolution program that is offered as
a service to REALTOR® members which provides a forum for resolving business
disputes in lieu of litigation. Arbitrations
are completely separate from ethics hearings. Arbitrations are
held when both agents acted legally and ethically, but a legitimate dispute
still arose between the agents. It usually involves compensation disputes
between brokers in two different firms. Arbitration is not about sanctioning
agents for bad behavior - it exists to resolve business disputes involving
REALTORS® in the event that the REALTORS® have been unable or unwilling to
resolve the dispute themselves.
Mandatory vs. Voluntary
REALTORS® are not obligated to use their Local Board/Association’s arbitration
services to resolve disputes. REALTORS® may resolve disputes themselves or
submit the dispute to other venues including courts. However, if one party who
is eligible to use the association's Arbitration services submits the claim to
their local board, then the other party may be obligated to participate in
arbitration and abide by the arbitrators' decision if the case is classified as
mandatory. Mandatory
vs. Voluntary Arbitration
Arbitration Process
In arbitrable cases, the local board/association convenes a panel of impartial,
unbiased, and experienced REALTORS® to consider your case. Designed to ensure
that the due process rights of all parties are protected, complainants and
respondents may be represented by attorneys, call witnesses, and present
evidence.
The parties also enjoy a limited right to request a procedural review to the
decision if they believe that there were procedural deficiencies or other
irregularities that constitutes a deprivation of due process. However, this is
not an appeal on the decision itself, only the procedures used in conducting
the hearing.
Mediation
In addition to Arbitration services, every local board/association also offers
Mediation as an alternative for resolving commission or other business
disputes. Mediation has become a popular alternative to Arbitration because it
is quicker, easier, and provides the parties with more control over the final
resolution of the dispute.