LA 4.0 hours Doing The Right Thing - The Code - Course Syllabus
4.0 Elective Hours
What is arbitration?
The National Association of REALTORS® (NAR) arbitration guidelines can be found in the Code of Ethics and Arbitration Manual. They provide guidance to hearing panels regarding how to determine procuring cause in arbitration hearings. The guidelines focus on procuring cause as the basis for resolving most commission disputes between brokers.
Among the duties a REALTOR® agrees to in subscribing to the Code of Ethics is the obligation to arbitrate, established in Article 17. Article 17 is interpreted through four Standards of Practice, among them is Standard of Practice 17-4 which enumerates four situations under which REALTORS® agree to arbitrate specified non-contractual disputes.
Boards and Associations provide arbitration to resolve contractual issues and questions, and specific non-contractual issues and questions that arise between members, between members and their clients, and, in some cases, between parties to a transaction brought about through the efforts of REALTORS®.
Most arbitration hearings conducted by Boards and Associations 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.