South Dakota Real Estate Continuing Education - SOUTH DAKOTA Approved School: RealEstateCE.com
SD 3.0 hours Doing The Right Thing - The Code - Course Syllabus
3.0 Required Subject Hours
What is arbitration?
Arbitration is used to resolve monetary disputes between two REALTORS® arising from of their relationship as REALTORS®. This is also known as a commission dispute. The arbitration process is provided by the local Association or Board of REALTORS® as a member service. The Association must provide arbitration to REALTORS® who are in a dispute over a commission, or to the client of a REALTOR® who is in a commission dispute with the REALTOR®.
Voluntary arbitration occurs when a REALTOR® principal invokes arbitration against his client, which requires the client's voluntary agreement to arbitrate, when REALTORS® or REALTOR-ASSOCIATES® who either are currently or were affiliated with the same firm wish to arbitrate a matter, and between a REALTOR® principal and a non-member broker, providing both agree in writing to the arbitration.
There is no requirement that local boards offer arbitration services to non-members, nor is there any injunction about them offering this service. A local association will decide if they will offer this service to non-members. Many associations, even for their members, charge a fee for arbitration due to the costs involved, such as the association's attorney and a court reporter being present. In other words, if one licensee thinks another licensee "stole my customer and my commission," and neither one is a REALTOR®, this process is not automatically open to them.