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Arbitration

When there is a procuring cause issue over a sale or there exists some other dispute between REALTORS® as defined in Article 17 of the REALTOR® Code of Ethics, brokers are encouraged to attempt to reach an agreement before filing for arbitration. However, if this is not possible, REALTOR® members are required to arbitrate as part of their membership duties, prior to seeking legal justification. Arbitration cannot be filed until the closing and up to 180 days after the closing, if any, or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.

Arbitration requires a deposit of $500 from each party. If the parties agree to mediate GAR will provide a trained mediator, and if the parties reach a settlement both parties will have their deposits refunded. If mediation fails the arbitration request will be scheduled for a hearing and only the prevailing party will receive a refund of their deposit. In the event of a split award, the arbitrators will determine if the parties will receive a portion of their deposits back.

When formulating a Request and Agreement to Arbitrate, please follow the steps below:

  1. Complete, sign, and date Form A-1, Request and Agreement to Arbitrate.
  2. Attach a one-page, typed timeline and/or summary of what transpired. Please make sure to sign and date your statement.
  3. Black and white and/or color copies are acceptable.
  4. Email to GAR’s Director of Operations, Desirae Lindquist.  Or you may submit in person at our office.

Upon receipt of an arbitration request, the following is the applicable procedure:

  1. Mediation services will be offered to the disputants prior to the review of the arbitration request by the Grievance Committee.
  2. If mediation is not requested or is unsuccessful your arbitration request will be forwarded to the Grievance Committee for a determination as to whether the issue is subject to arbitration, based on the information in the “Request and Agreement to Arbitrate” form and any exhibits or supporting materials you provide.
  3. After review by the Grievance Committee, if the matter is found to be arbitrable, the Request will be sent to the Respondent for a reply.
  4. The Response will be forwarded to the Complainant upon receipt, and a date will be set for the arbitration hearing before a panel of the Professional Standards Committee.

Panels, when determining procuring cause refer to the Arbitration Guidelines for Procuring Cause which can be found in NAR's Code of Ethics and Arbitration Manual.

If you feel that a violation of the REALTOR® Code of Ethics may have occurred as well as arbitration, an ethics complaint can be filed at the same time as your arbitration request. When an ethics complaint and arbitration request are filed at the same time and arise out of the same facts and circumstances, the arbitration procedures will take place first and the ethics procedures will follow the conclusion of the arbitration process.

 

Related Downloads

Ethics Forms

Arbitration Forms

Mediation Forms