Article 17 of the National Association of REALTORS® 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 Code of Ethics and Arbitration Manual is used by REALTOR® Associations to ensure due process while conducting hearings to enforce NAR Code of Ethics and the arbitration of contractual and specific non-contractual disputes as defined in Standard of Practice 17-4 arising out of the real estate business.
The request for arbitration must be filed within one hundred eighty (180) days after the closing of the transaction, if any, or within one hundred eighty (180) days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.
Most arbitration requests concern procuring cause or entitlement to the disputed funds. There are several factors that go into determining procuring cause, not just one factor.
When filling out the Request and Agreement to Arbitrate you will need to name the REALTOR® principal(s) of the office with whom you have the dispute; this can be the Broker or Record or Managing Broker or both. Team leaders should not be listed unless they are the Broker of Record or the office’s Managing Broker. Be sure to name all the REALTOR® principals that you feel should be included to be held responsible for the amount in question.
A request for arbitration must be filed within 180 days after the closing of the transaction, if any, or within 180 days after the facts constituting the matter could have been known in the exercise of reasonable diligence, whichever is later.
You will need to include all requested documentation including a narrative that outlines the series of events, any supporting documentation and a filing fee deposit of $500.00 (Check payable to NCCBOR).
To access an electronic version of the The 2020 Code of Ethics and Standards of Practice of the National Association of REALTORS® Click HERE>
Arbitration Complaints go to mandatory mediation.