Code of Ethics and
Arbitration Manual
2014
Code of Ethics and
Arbitration Manual
A Manual for use by Member Boards of the National Association
to ensure due process in the conduct of hearings to enforce the
Code of Ethics and in the arbitration of business disputes arising
out of the real estate business. Professional standards procedures
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process policies and procedures of this Manual in order to ensure
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the Board in connection with Board enforcement of the Code of
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with applicable state law.
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changed are shaded to highlight additions.
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by the Professional Standards Committee through 2013. All new
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by the National Association’s Professional Standards Committee
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NATIONAL ASSOCIATION OF REALTORS®
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Chicago, Illinois 60611-4087
REALTOR®LVDUHJLVWHUHGFROOHFWLYHPHPEHUVKLSPDUNZKLFK
may be used only by real estate professionals who are members of the
NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics.
© 2014 NATIONAL ASSOCIATION OF REALTORS®
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This Manual is dedicated to the memory of
Chesley J. (“Chet”) Smith
(1921–2001)
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WKH$UP\$LU&RUSVDQGWKH86$LU)RUFHDQGKHVHUYHGREALTORS®
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dedication to the REALTOR® organization was exceeded only by his
dedication to his family, his faith in God, and his commitment to the Code
of Ethics.
Table of Contents—
Code of Ethics and Arbitration Manual
Areas of the Manual Requiring Board/Association Action .......................
i
The REALTOR ’S Code of Ethics—A Gift of Vision .......................................
v
®
Preface............................................................................................................ 1
Code of Ethics and Standards of Practice..................................................
5
Introduction.................................................................................................... 15
ETHICS ........................................................................................................... 19
Statements of Professional Standards Policy
Applicable to Ethics Proceedings................................................................ 21
Part One — General Provisions Relating to Ethics ...................................... 29
6HFWLRQ³'HÀQLWLRQV5HODWLQJWR(WKLFV .................................................. 29
6HFWLRQ³4XDOLÀFDWLRQIRU7ULEXQDO ......................................................... 30
Section 3 — Duty to Give Evidence ............................................................ 31
6HFWLRQ³5LJKWRI&RXQVHOWR$SSHDU .................................................... 31
Section 5 — Witnesses ............................................................................... 32
6HFWLRQ³&RQGXFWRI+HDULQJ ................................................................. 32
Section 7 — Notices .................................................................................... 33
6HFWLRQ³,QWHUSUHWDWLRQVRI%\ODZV ........................................................ 33
6HFWLRQ³:DLYHU ..................................................................................... 33
6HFWLRQ³&RPPXQLFDWLRQDQG&OHULFDO................................................. 33
6HFWLRQ³$WWHPSWWR,QÁXHQFH7ULEXQDO ................................................ 33
Part Two — Membership Duties and Their Enforcement.............................. 35
6HFWLRQ³'XWLHVRI0HPEHUVKLS ........................................................... 35
6HFWLRQ³3RZHUWR7DNH'LVFLSOLQDU\$FWLRQ ........................................ 35
6HFWLRQ³1DWXUHRI'LVFLSOLQH ............................................................... 36
Section 15 — 6HOHFWLRQDQG$SSRLQWPHQWRIWKH*ULHYDQFH&RPPLWWHH ....... 37
6HFWLRQ³6HOHFWLRQDQG$SSRLQWPHQWRIWKH
3URIHVVLRQDO6WDQGDUGV&RPPLWWHH ......................................................... 37
Part Three — The Grievance Committee ........................................................ 39
6HFWLRQ³$XWKRULW\ ................................................................................ 39
Section 18 — Function ................................................................................ 39
6HFWLRQ³5HYLHZRI(WKLFV&RPSODLQW .................................................. 39
Part Four — The Ethics Hearing ...................................................................... 43
6HFWLRQ³,QLWLDWLQJDQ(WKLFV+HDULQJ ................................................... 43
6HFWLRQ³(WKLFV+HDULQJ ...................................................................... 45
6HFWLRQ³'HFLVLRQRI+HDULQJ3DQHO .................................................... 47
6HFWLRQ³$FWLRQRIWKH%RDUGRI'LUHFWRUV............................................ 48
6HFWLRQ³,QLWLDO$FWLRQE\'LUHFWRUV ...................................................... 50
6HFWLRQ³3UHOLPLQDU\-XGLFLDO'HWHUPLQDWLRQ3ULRUWR
,PSRVLWLRQRI'LVFLSOLQH ............................................................................ 51
$SSHQGL[,WR3DUW)RXU³5ROHRIWKH%RDUGRI'LUHFWRUVLQ
5HYLHZLQJDQG5DWLI\LQJ(WKLFV+HDULQJ3DQHO'HFLVLRQV....................... 52
$SSHQGL[,,WR3DUW)RXU³$SSURSULDWH,QWHUSUHWDWLRQRI
´3HUWLQHQW)DFWVµDV8VHGLQ$UWLFOHRIWKH&RGHRI(WKLFV ................... 53
$SSHQGL[,,,WR3DUW)RXU³5HVSRQVLELOLW\RI0HPEHU%RDUGVZLWK
5HVSHFWWR$UWLFOHRIWKH&RGHRI(WKLFV ............................................. 54
$SSHQGL[,9WR3DUW)RXU³5DWLRQDOHRI
'HFODUDWRU\5HOLHI3URFHGXUH ................................................................
$SSHQGL[9WR3DUW)RXU³(WKLFV+HDULQJ&KHFNOLVWZLWK
$GPLQLVWUDWLYH7LPH)UDPHV ..................................................................
$SSHQGL[9,WR3DUW)RXU³&RRSHUDWLYH(QIRUFHPHQWRIWKH
&RGHRI(WKLFV .......................................................................................
$SSHQGL[9,,WR3DUW)RXU³6DQFWLRQLQJ*XLGHOLQHV..................................
$SSHQGL[9,,,WR3DUW)RXU³3URFHGXUHVIRU&RQVLGHUDWLRQRI
$OOHJHG9LRODWLRQVRI$UWLFOH,96HFWLRQ%\ODZV
NATIONAL ASSOCIATION OF REALTORS®. ......................................................
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1HJRWLDWLQJ0XOWLSOH2IIHUV ....................................................................
$SSHQGL[;WR3DUW)RXU³%HIRUH<RX)LOHDQ(WKLFV&RPSODLQW ...............
56
57
63
65
70
71
73
Part Five — Conduct of an Ethics Hearing .................................................... 77
2XWOLQHRI3URFHGXUHIRU&RQGXFWRIDQ(WKLFV+HDULQJ ............................ 77
2XWOLQHRI3URFHGXUHIRUDQ(WKLFV+HDULQJ,QYROYLQJD
&RPSODLQWDQG&RXQWHU&RPSODLQW ........................................................ 78
&KDLUSHUVRQҋV3URFHGXUDO*XLGH&RQGXFWRIDQ(WKLFV+HDULQJ .............. 80
&KDLUSHUVRQҋV3URFHGXUDO*XLGH
&RQGXFWRIDQ$SSHDO+HDULQJ(WKLFV ................................................. 83
Part Six — Specimen Forms for Ethics........................................................... 87
)RUP(³(WKLFV&RPSODLQW ................................................................. 88
)RUP(³1RWLFHWR5HVSRQGHQW ......................................................... 89
)RUP(³5HSO\ ................................................................................... 90
)RUP(³*ULHYDQFH&RPPLWWHH5HTXHVWIRU,QIRUPDWLRQ
(WKLFV&RPSODLQW.................................................................................. 91
)RUP(³5HVSRQVHWR*ULHYDQFH&RPPLWWHH
5HTXHVWIRU,QIRUPDWLRQ ......................................................................... 92
)RUP(³*ULHYDQFH&RPPLWWHH5HSRUW)RUP ................................. 93
)RUP(³1RWLFHRI5LJKWWR&KDOOHQJH
7ULEXQDO0HPEHUV .................................................................................. 94
)RUP(³&KDOOHQJHWR4XDOLÀFDWLRQE\3DUWLHVWR
(WKLFV3URFHHGLQJ .................................................................................. 95
)RUP(³2IÀFLDO1RWLFHRI+HDULQJ.................................................... 96
)RUP(³2XWOLQHRI3URFHGXUHIRU(WKLFV+HDULQJ ............................. 97
)RUP(D³2XWOLQHRI3URFHGXUHIRU(WKLFV+HDULQJZLWK
&RPSODLQWDQG&RXQWHU&RPSODLQW ........................................................ 98
)RUP(³&HUWLÀFDWHRI4XDOLÀFDWLRQ ............................................... 100
)RUP(³'HFLVLRQRI(WKLFV+HDULQJ3DQHO .................................... 101
)RUP(³$FWLRQRIWKH%RDUGRI'LUHFWRUV ...................................... 103
)RUP(³5HTXHVWIRU$SSHDO ........................................................... 105
)RUP(³2IÀFLDO1RWLFHRI$SSHDO+HDULQJ ...................................... 106
)RUP(³&KHFNOLVWRI3URIHVVLRQDO6WDQGDUGV&RQFHUQV................. 108
)RUP(³6HDWLQJ$UUDQJHPHQWVIRU+HDULQJV.................................. 110
)RUP(³(WKLFV$FWLYLW\5HSRUW ........................................................ 111
)RUP(³2XWOLQHRI&RQWHQWRI3HWLWLRQIRU
'HFODUDWRU\5HOLHI .................................................................................. 112
)RUP(³6DPSOH$JUHHPHQWWR(VWDEOLVK0XOWL%RDUG
RU5HJLRQDO3URIHVVLRQDO6WDQGDUGV(QIRUFHPHQW3URFHGXUHV ............ 113
)RUP(³1RWLFHWR5HVSRQGHQW(WKLFVDQG
2SWLRQDO:DLYHURI5LJKWWR+HDULQJ ...................................................... 116
)RUP(³6DPSOH/HWWHURI5HSULPDQd/:DUQLQJ .............................. 118
)RUP(³$SSHDORI*ULHYDQFH&RPPLWWHH
'LVPLVVDORI(WKLFV&RPSODLQW ............................................................... 119
)RUP(³$FWLRQRIWKH$SSHDO+HDULQJ7ULEXQDO
(WKLFV&RPSODLQW.................................................................................. 120
ARBITRATION ........................................................................................................ 123
Statements of Professional Standards Policy
Applicable to Arbitration Proceedings ...................................................... 131
Part Seven — General Provisions Relating to Arbitration .......................... 131
6HFWLRQ³'HÀQLWLRQV5HODWLQJWR$UELWUDWLRQ ....................................... 131
6HFWLRQ³4XDOLÀFDWLRQIRU7ULEXQDO ..................................................... 131
Section 28 — Duty to Give Evidence ........................................................ 132
6HFWLRQ³5LJKWRI&RXQVHOWR$SSHDU ................................................ 133
Section 30 — Witnesses ........................................................................... 133
6HFWLRQ³&RQGXFWRI+HDULQJ ............................................................. 133
Section 32 — Notices ................................................................................ 134
6HFWLRQ³,QWHUSUHWDWLRQVRI%\ODZV .................................................... 134
6HFWLRQ³:DLYHU ................................................................................. 134
6HFWLRQ³&RPPXQLFDWLRQDQG&OHULFDO .............................................. 134
6HFWLRQ³$WWHPSWWR,QÁXHQFH7ULEXQDO .............................................. 134
Part Eight — Membership Duties and Enforcement ................................... 135
6HFWLRQ³'XWLHVRI0HPEHUVKLS......................................................... 135
6HFWLRQ³6HOHFWLRQDQG$SSRLQWPHQWRIWKH
*ULHYDQFH&RPPLWWHH ............................................................................ 135
6HFWLRQ³6HOHFWLRQDQG$SSRLQWPHQWRIWKH
3URIHVVLRQDO6WDQGDUGV&RPPLWWHH ....................................................... 135
Part Nine — The Grievance Committee ........................................................ 137
6HFWLRQ³$XWKRULW\ ............................................................................. 137
Section 41 — Function .............................................................................. 137
6HFWLRQ³*ULHYDQFH&RPPLWWHHҋV5HYLHZDQG$QDO\VLVRID
5HTXHVWIRU$UELWUDWLRQ ........................................................................... 137
Part Ten — Arbitration of Disputes ............................................................... 139
6HFWLRQ³$UELWUDEOH,VVXHV ................................................................. 139
6HFWLRQ³'XW\DQG3ULYLOHJHWR$UELWUDWH ............................................ 140
6HFWLRQ³%RDUGҋV5LJKWWR'HFOLQH$UELWUDWLRQ ................................... 141
6HFWLRQ³'XW\WR$UELWUDWH%HIRUH6WDWH$VVRFLDWLRQ ......................... 142
6HFWLRQ³0DQQHURI,QYRNLQJ$UELWUDWLRQ ............................................ 142
6HFWLRQ³6XEPLVVLRQWR$UELWUDWLRQ ................................................... 144
6HFWLRQ³,QLWLDO$FWLRQE\'LUHFWRUV .................................................... 145
6HFWLRQ³3UHOLPLQDU\-XGLFLDO'HWHUPLQDWLRQ
3ULRUWR,PSRVLWLRQRI'LVFLSOLQH ............................................................. 145
6HFWLRQ³$UELWUDWLRQ+HDULQJ .............................................................. 145
Section 52 — Settlement .......................................................................... 145
6HFWLRQ³7KH$ZDUG .......................................................................... 146
6HFWLRQ³&RVWVRI$UELWUDWLRQ ............................................................. 146
6HFWLRQ³5HTXHVWIRU3URFHGXUDO5HYLHZ .......................................... 147
6HFWLRQ³(QIRUFHPHQW ....................................................................... 148
$SSHQGL[,WR3DUW7HQ³$UELWUDEOH,VVXHV .............................................. 149
$SSHQGL[,,WR3DUW7HQ³$UELWUDWLRQ*XLGHOLQHV...................................... 153
$SSHQGL[,,WR3DUW7HQ³$UELWUDWLRQ:RUNVKHHW .................................... 161
$SSHQGL[,,,WR3DUW7HQ³5DWLRQDOHRI'HFODUDWRU\5HOLHIDQGRI
-XGLFLDO(QIRUFHPHQWLQ0DWWHUVRI$UELWUDWLRQ ....................................... 165
$SSHQGL[,9WR3DUW7HQ³5DWLRQDOHIRU1R)LQGLQJVRI)DFW
LQ$ZDUGV ............................................................................................... 166
$SSHQGL[9WR3DUW7HQ³$UELWUDWLRQ+HDULQJ&KHFNOLVWZLWK
$GPLQLVWUDWLYH7LPH)UDPHV .................................................................. 167
$SSHQGL[9,WR3DUW7HQ³0HGLDWLRQDVD
6HUYLFHRI0HPEHU%RDUGV .................................................................... 172
Part Eleven — Interboard Arbitration Procedures....................................... 183
Part Twelve — Conduct of an Arbitration Hearing ....................................... 187
2XWOLQHRI3URFHGXUHIRU&RQGXFWRIDQ$UELWUDWLRQ+HDULQJ ..................... 187
2XWOLQHRI3URFHGXUHIRUDQ$UELWUDWLRQ+HDULQJ,QYROYLQJD
5HTXHVWDQGD&RXQWHU5HTXHVW ........................................................... 188
&KDLUSHUVRQҋV3URFHGXUDO*XLGH&RQGXFWRIDQ$UELWUDWLRQ+HDULQJ ....... 190
&KDLUSHUVRQҋV3URFHGXUDO*XLGH
&RQGXFWRIDQ,QWHUERDUG$UELWUDWLRQ+HDULQJ........................................ 193
&KDLUSHUVRQҋV3URFHGXUDO*XLGH
&RQGXFWRID3URFHGXUDO5HYLHZ+HDULQJ$UELWUDWLRQ.......................... 196
&KDLUSHUVRQҋV3URFHGXUDO*XLGH
&RQGXFWRID3URFHGXUDO5HYLHZ+HDULQJ,QWHUERDUG$UELWUDWLRQ ........ 199
Part Thirteen — Specimen Forms for Arbitration ........................................ 203
)RUP$³5HTXHVWDQG$JUHHPHQWWR$UELWUDWH .................................. 204
)RUP$³5HTXHVWDQG$JUHHPHQWWR$UELWUDWH1RQPHPEHU .......... 206
)RUP$³1RWLFHWR5HVSRQGHQW ........................................................ 208
)RUP$³5HVSRQVHDQG$JUHHPHQWWR$UELWUDWH ............................... 209
)RUP$³*ULHYDQFH&RPPLWWHH5HTXHVWIRU,QIRUPDWLRQ .................. 211
)RUP$³5HVSRQVHWR*ULHYDQFH&RPPLWWHH
5HTXHVWIRU,QIRUPDWLRQ ......................................................................... 212
)RUP$³1RWLFHRI5LJKWWR&KDOOHQJH7ULEXQDO0HPEHUV ................. 213
)RUP$³&KDOOHQJHWR4XDOLÀFDWLRQVE\
3DUWLHVWR$UELWUDWLRQ3URFHHGLQJ ........................................................... 214
)RUP$³2IÀFLDO1RWLFHRI+HDULQJ ................................................... 215
)RUP$³2XWOLQHRI3URFHGXUHIRU$UELWUDWLRQ+HDULQJ ..................... 216
)RUP$D³2XWOLQHRI3URFHGXUHIRU$UELWUDWLRQ+HDULQJ
,QYROYLQJD5HTXHVWDQGD&RXQWHU5HTXHVW ......................................... 217
)RUP$³&HUWLÀFDWHRI4XDOLÀFDWLRQ ................................................. 219
)RUP$³$ZDUGRI$UELWUDWRUV ........................................................... 220
)RUP$³5HTXHVWIRU3URFHGXUDO5HYLHZ........................................ 221
)RUP$³2IÀFLDO1RWLFHRI3URFHGXUDO5HYLHZ................................. 222
)RUP$D³'HFLVLRQRIWKH
3URFHGXUDO5HYLHZ+HDULQJ7ULEXQDO .................................................... 223
)RUP$³&KHFNOLVWRI3URIHVVLRQDO6WDQGDUGV&RQFHUQV ................. 224
)RUP$³6HDWLQJ$UUDQJHPHQWVIRU+HDULQJV .................................. 226
)RUP$³0HGLDWLRQ5HVROXWLRQ$JUHHPHQW ...................................... 227
)RUP$³$UELWUDWLRQ$FWLYLW\5HSRUW ................................................. 228
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RU5HJLRQDO3URIHVVLRQDO6WDQGDUGV(QIRUFHPHQW3URFHGXUHV ........... 229
)RUP$³$SSHDORI*ULHYDQFH&RPPLWWHH
'LVPLVVDORU&ODVVLÀFDWLRQRI$UELWUDWLRQ5HTXHVW................................. 232
)RUP$³$FWLRQRIWKH$SSHDO+HDULQJ7ULEXQDO
$UELWUDWLRQ5HTXHVW .............................................................................. 233
Part Fourteen — State Association
Professional Standards Committee........................................................... 235
Questions and Answers ...................................................................................... 239
Statements of Professional Standards Policy
(Complete Listing)............................................................................................. 243
Professional Standards Training Guide .......................................................... 253
Pathways to Professionalism............................................................................. 262
Index ......................................................................................................................... 372
Table of Contents —
Interpretations of the Code of Ethics ........................................................................................ 263
Preface ...................................................................... 265
Article 1
3URWHFWDQG3URPRWH<RXU&OLHQWҋV
,QWHUHVWV%XWEH+RQHVWZLWK$OO3DUWLHV ................ 267
Article 2
$YRLG([DJJHUDWLRQ0LVUHSUHVHQWDWLRQDQG
&RQFHDOPHQWRI3HUWLQHQW)DFWV'R1RW
5HYHDO)DFWVWKDWDUH&RQÀGHQWLDO8QGHU
WKH6FRSHRI<RXU$JHQF\5HODWLRQVKLS ................. 287
Article 3
&RRSHUDWHZLWK2WKHU5HDO(VWDWH
3URIHVVLRQDOVWR$GYDQFH&OLHQWҋV
%HVW,QWHUHVWV .......................................................... 299
Article 4
:KHQ%X\LQJRU6HOOLQJ0DNH
<RXU3RVLWLRQLQWKH7UDQVDFWLRQRU
,QWHUHVW.QRZQ ........................................................ 305
Article 5
'LVFORVH3UHVHQWRU&RQWHPSODWHG
,QWHUHVWLQ$Q\3URSHUW\WR$OO3DUWLHV ..................... 309
Article 6
$YRLG6LGH'HDOVZLWKRXW&OLHQWҋV
,QIRUPHG&RQVHQW .................................................... 311
Article 7
$FFHSW&RPSHQVDWLRQIURP2QO\2QH
3DUW\([FHSWZLWK)XOO'LVFORVXUHDQG
,QIRUPHG&RQVHQW .................................................... 315
Article 8
.HHSWKH)XQGVRI&OLHQWVDQG&XVWRPHUV
LQ(VFURZ ................................................................. 317
Article 10
3URYLGH(TXDO6HUYLFHWR$OO&OLHQWV
DQG&XVWRPHUV ....................................................... 321
Article 11
%H.QRZOHGJHDEOHDQG&RPSHWHQWLQWKH
)LHOGVRI3UDFWLFHLQ:KLFK<RX2UGLQDULO\
(QJDJH2EWDLQ$VVLVWDQFHRU'LVFORVH/DFN
RI([SHULHQFHLI1HFHVVDU\ .................................... 325
Article 12
3UHVHQWD7UXH3LFWXUHLQ<RXU$GYHUWLVLQJ
DQG2WKHU3XEOLF5HSUHVHQWDWLRQV ........................... 329
Article 13
'R1RW(QJDJHLQWKH8QDXWKRUL]HG
3UDFWLFHRI/DZ ....................................................... 345
Article 14
%HD:LOOLQJ3DUWLFLSDQWLQ&RGH
(QIRUFHPHQW3URFHGXUHV ........................................ 347
Article 15
(QVXUHWKDW<RXU&RPPHQWVDERXW
2WKHU5HDO(VWDWH3URIHVVLRQDOV
DUH7UXWKIXODQG1RW0LVOHDGLQJ ............................. 349
Article 16
5HVSHFWWKH([FOXVLYH5HSUHVHQWDWLRQ
RU([FOXVLYH%URNHUDJH5HODWLRQVKLS
$JUHHPHQWVWKDW2WKHUREALTORS® have
ZLWKWKHLU&OLHQWV ...................................................... 351
Article 17
$UELWUDWHDQG0HGLDWH&RQWUDFWXDODQG6SHFLÀF
1RQ&RQWUDFWXDO'LVSXWHVZLWK
2WKHUREALTORS®DQGZLWK<RXU&OLHQWV .................. 365
Index .......................................................................... 372
Article 9
$VVXUH:KHQHYHU3RVVLEOHWKDW
7UDQVDFWLRQDO'HWDLOVDUHLQ:ULWLQJ ......................... 319
NOTE:$OOQHZDQGDPHQGHG&DVH,QWHUSUHWDWLRQVEHFRPHHIIHFWLYHXSRQDSSURYDOE\WKH1DWLRQDO$VVRFLDWLRQҋV3URIHVVLRQDO
6WDQGDUGV&RPPLWWHHDQGSXEOLFDWLRQRQ5($/725RUJ
Areas of the Code of Ethics and Arbitration
Manual Requiring Board/Association Action
7KHIROORZLQJSURYLVLRQVRIWKH0DQXDODUHUHIHUHQFHGWRDVVLVW
Boards and Associations in adapting the Manual to conform to
local policy and comply with state law. Throughout the Manual,
the following symbol appears to assist Boards and Associations
LQTXLFNO\LGHQWLI\LQJWKRVHSURYLVLRQV
Part Fourteen, 6WDWH$VVRFLDWLRQ3URIHVVLRQDO6WDQGDUGV
&RPPLWWHH([SHQVHVRI+HDULQJV&RQGXFWHGE\6WDWH$VVRFLDWLRQ
Part Eleven, ,QWHUERDUG$UELWUDWLRQ3URFHGXUHV Costs of
Arbitration.
#33. 8VHRISDQHOVLQSODFHRIERDUGRIGLUHFWRUV Specify what
matters, if any, will be considered by panels of Directors and the
composition of such panels. Also, see Section 13(b), 3RZHUWR7DNH
'LVFLSOLQDU\$FWLRQ Section 19(c), $SSHDOVIURPWKH'HFLVLRQ
RIWKH*ULHYDQFH&RPPLWWHH5HODWHGWRDQ(WKLFV&RPSODLQW
Section 42(c), $SSHDOVIURPWKH'HFLVLRQRI*ULHYDQFH&RPPLWWHH
5HODWHGWRD5HTXHVWIRU$UELWUDWLRQSection 20(c) and (d),
,QLWLDWLQJDQ(WKLFV+HDULQJ Section 23, $FWLRQRIWKH%RDUG
RI'LUHFWRUV Sections 24 and 49, ,QLWLDO$FWLRQE\'LUHFWRUV
Sections 25 and 50, 3UHOLPLQDU\-XGLFLDO'HWHUPLQDWLRQ3ULRU
WR,PSRVLWLRQRI'LVFLSOLQH Section 45, %RDUG·V5LJKWWR'HFOLQH
$UELWUDWLRQ Section 47(c), 0DQQHURI,QYRNLQJ$UELWUDWLRQ
Section 55, 5HTXHVWIRU3URFHGXUDO5HYLHZE\'LUHFWRUV Part
Fourteen, 6WDWH$VVRFLDWLRQ3URIHVVLRQDO6WDQGDUGV&RPPLWWHH
&RPSRVLWLRQRI+HDULQJ3DQHOVDQG$SSHOODWHRU5HYLHZ3DQHOV
Fill in the name of the Board or Association in:
Section 1(b) and 26(b), 'HÀQLWLRQV
Section 13(b), 3RZHUWR7DNH'LVFLSOLQDU\$FWLRQ
Section 46, 'XW\WR$UELWUDWH%HIRUHWKH6WDWH$VVRFLDWLRQ
Section 56, (QIRUFHPHQW
Fill in the name of the Board or Association and decide if the
+HDULQJ3DQHOFKDLURUWKH3URIHVVLRQDO6WDQGDUGV&RPPLWWHH
chair will rule on postponement requests in:
Part Five and Part Twelve
&RQGXFWRIDQ(WKLFV+HDULQJ with related procedures and outlines
&RQGXFWRIDQ$UELWUDWLRQ+HDULQJ with related procedures and
outlines
Part Six and Part Thirteen
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Part One and Part Seven: General Provisions
Sections 6 and 31, &RQGXFWRI+HDULQJ Clarify whether the parties
may or may not record the proceeding.
Part Fourteen
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$UELWUDWLRQ3URFHHGLQJV
'XW\WR$UELWUDWH%HIRUH6WDWH$VVRFLDWLRQ
Part Two and Part Eight: Membership Duties and Their
Enforcement
Sections 15 and 38, *ULHYDQFH&RPPLWWHHand Sections 16 and
39, 3URIHVVLRQDO6WDQGDUGV&RPPLWWHH Specify the number of
members on each committee and how the chairpersons will be
selected.
Statements of Professional Standards Policy
#3. &LUFXPVWDQFHVXQGHUZKLFKDUELWUDWLRQLVFRQWLQJHQWXSRQWKH
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Section 44, 'XW\DQG3ULYLOHJHWR$UELWUDWH, specifying whether
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#45. 3XEOLVKLQJWKHQDPHVRI&RGHRI(WKLFVYLRODWRUV Determine
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FRPPLWWHH Specify how expenses of hearings shall be shared by
the signatory Boards.
Part Three and Part Nine: The Grievance Committee
Sections 17 and 40, $XWKRULW\ Specify how many members will
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NOTE: The new and continuous member education criteria
referenced in Professional Standards Policy Statements #47 and
#48, and the criteria for staff administration training referenced
in Professional Standards Policy Statement #49, can be found
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member and continuous member training can also be found on
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Part Four: The Ethics Hearing
Section 14, last paragraph, 'LVFLSOLQH Board of Directors to
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imposed. Also determine amount.
Section 20(a), ,QLWLDWLQJDQ(WKLFV+HDULQJ Clarify if a response
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Also, Forms #E-19 and #A-19, Sample Format of Agreement
Between ________ and ________ Boards of REALTORS® . . .
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Section 20(f–q), ,QLWLDWLQJDQ(WKLFV+HDULQJ Determine if the
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PRGHOE\ODZSURYLVLRQVFDQEHIRXQGDW5($/725.org (see
Model Bylaws).
Section 21(e), (WKLFV+HDULQJ and Section 51(b), $UELWUDWLRQ
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Also decide if the Board will offer disputing parties an
opportunity to mediate prior to an arbitration request being
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Section 22(a), 'HFLVLRQRI+HDULQJ3DQHO Determine if ethics
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not include the names of the parties.
Part Eleven: Interboard Arbitration Procedures
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Secretary must send a copy of the arbitration request to the
respondent. Clarify whether a party may or may not tape record
the proceeding.
Section 23(b) and (m), $FWLRQRIWKH%RDUGRI'LUHFWRUV Decide
if panels will act on behalf of your Board of Directors.
Section 23(c), $FWLRQRIWKH%RDUGRI'LUHFWRUV Establish the
amount of appeal deposit, if any.
Part Five and Part Twelve: Conduct of an Ethics or Arbitration
Hearing
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Committee Chair rules on postponement requests.
Section 23(n), $FWLRQRIWKH%RDUGRI'LUHFWRUV Determine if
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twice within three years.
Clarify whether a party may or may not record the proceeding.
Part Ten: Arbitration of Disputes
Section 47(a – c), 0DQQHURI,QYRNLQJ$UELWUDWLRQ, and Section
48(a) and (b), 6XEPLVVLRQWR$UELWUDWLRQ. Specify the amount of
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response; and select one of the three options regarding signed
agreements and deposits.
Part Six and Part Thirteen: Specimen Forms
Form #E-4, Grievance Committee Request for Information
(Ethics Complaint). Specify the number of days a respondent has
to submit a response and the number of copies required (should
be consistent with Section 21(a), (WKLFV+HDULQJ).
Form #A-1, Request and Agreement to Arbitrate, and Form
#A-2, Request and Agreement to Arbitrate (Nonmember).
Specify the amount of the arbitration deposit (should be consistent
with Section 47(a), 0DQQHURI,QYRNLQJ$UELWUDWLRQ and Section
48(a), 6XEPLVVLRQWR$UELWUDWLRQ).
Section 53(c–f), 7KH$ZDUG. Determine if the optional procedures
in subsections c–f will be adopted.
Section 54, &RVWRI$UELWUDWLRQ'HWHUPLQHLIWKHDUELWUDWLRQÀOLQJ
IHHRIWKHSUHYDLOLQJSDUW\LVWREHUHWXUQHGDQGLIWKHUHLVDVSOLW
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as determined by the arbitrators.
Form #A-5, Grievance Committee Request for Information
(Arbitration Request). Specify the number of days the respondent
has to submit a response.
Also determine whether the association will refund all or part
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through mediation.
Form #E-2, Notice to Respondent (Ethics) and Form #A-3,
Notice to Respondent (Arbitration). Specify the number of
copies that must be submitted.
Section 55(a), 5HTXHVWIRU3URFHGXUDO5HYLHZE\'LUHFWRUV
'HWHUPLQHZKHWKHUWKH%RDUGZLOOUHTXLUHDGHSRVLWWRÀOHD
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deposit will be.
Form #E-3, Reply (Ethics); Form #E-5, Response to Grievance
Committee Request for Information; and Form #E-8, 2IÀFLDO
Notice of Hearing (Ethics). Board of Directors to determine
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imposed. Also determine amount. Should be consistent with
Section 14, last paragraph, 'LVFLSOLQH
Section 55(c), 5HTXHVWIRU3URFHGXUDO5HYLHZE\'LUHFWRUV
'HWHUPLQHLIWKHSURFHGXUDOUHYLHZZLOOEHKHDUGE\WKHIXOO%RDUG
of Directors or a subset thereof.
Form #A-4, Response and Agreement to Arbitrate. Specify the
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0DQQHURI,QYRNLQJ$UELWUDWLRQ and Section 48(a), 6XEPLVVLRQ
WR$UELWUDWLRQ).
Appendix VI to Part Ten, 0HGLDWLRQDVD6HUYLFHRI0HPEHU
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Determine whether the Board will require R EALTORS ®
(principals) to mediate otherwise arbitratable disputes pursuant
to Article 17. Requiring R EALTORS® to mediate otherwise
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Form #E-9, Outline of Procedure for Ethics Hearing and Form
#A-10, Outline of Procedure for Arbitration Hearing. Clarify
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whether the parties may or may not tape record the proceeding.
Form #E-13, Request for Appeal (Ethics). Specify the amount
RIWKHÀOLQJIHHLIDQ\VKRXOGEHFRQVLVWHQWZLWK6HFWLRQF
$FWLRQRIWKH%RDUGRI'LUHFWRUV).
Form #A-13, Request for Procedural Review (Arbitration).
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with Section 55, 5HTXHVWIRU3URFHGXUDO5HYLHZE\'LUHFWRUV).
Form #E-14, 2IÀFLDO1RWLFHRI$SSHDO+HDULQJ(WKLFV and
Form #A-14, 2IÀFLDO1RWLFHRI3URFHGXUDO5HYLHZ$UELWUDWLRQ
Specify the number of days’ notice required if counsel is to
be present (should be consistent with Sections 4 and 29, 5LJKWRI
&RXQVHOWR$SSHDU) and the number of days required to challenge the
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2(f) and 27(f), 4XDOLÀFDWLRQIRU7ULEXQDO).
Form #E-19 and Form #A-19, Sample Format to Establish
Multi-Board (or Regional) Professional Standards Enforcement
Procedures. Clarify on refusals to arbitrate what tribunal will hear
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dismissal of an ethics complaint or arbitration request (or challenges
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hear matter. Also clarify which Board(s) will be responsible for
administering the process.
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The REALTOR®’S Code of Ethics —
A Gift of Vision
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edition of 7KH([HFXWLYH2IÀFHU.)
licensing systems. It was a time when real estate agents, if they
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The Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®
represents one of those rare creations of man—DOLYLQJGRFXPHQW
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and usefulness despite the passing of years and the changing of
the times.
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who dreamed that the business of real estate could become a
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the highest and best use of the land required the highest and best
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political democracy and a free and prosperous citizenry.
This was the era which produced the Code of Ethics of the National
Association. With the exception of a now defunct association of
printers, the REALTORS®ZHUHWKHÀUVWEXVLQHVVJURXSRXWVLGHWKH
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integrity and fair dealing.
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a century of unprecedented social, political, economic, and legal
change substantially unchanged.
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EXWDFRPPLWPHQWSUHGLFDWHGRQDQHHGSHUFHLYHGE\REALTORS®
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responsibilities, duties and costs, limitations and obligations,
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DFRPPLWPHQWWRWKHFRQFHSWRIVHUYLFHWRWKHSXEOLFDVDQDUWLFOH
of faith in professionalism.
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a set of rules for the conduct of real estate transactions. To endure,
the Code must be a criterion of excellence while at the same time
constituting a realistic standard of performance. It must be a guide
to measure professional conduct, while at the same time representing
the furthest reach of professional aspiration. The Code must remain
constant without becoming absolute, must be enforceable without
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6LJQLÀFDQFHRIWKH&RGH
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)URPWKHYHU\EHJLQQLQJWKH&RGHKDVSURYLGHGWKHLPSHWXVIRU
$VVRFLDWLRQLQYROYHPHQWLQHGXFDWLRQRIREALTORS® to support
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property ownership to support [the Preamble]; in the creation
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arrangements to support Articles [5] and [3]; in the arbitration of
disputes to support Article [17]; in the protection of the consumer
to support Articles [1] and [2].
The Code of Ethics has been able to meet all these needs and
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its creators in adopting as the unifying rationale of the Code the
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Article must be interpreted and applied. This single concept, by
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on Association organization and structure. Thus, the local Board
of REALTORS® is an indispensable constituent of the REALTOR®
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for the enforcement of the Code. From this function, too, proceeds
the need for Board jurisdictions and the structure of the State
Association. Perhaps, more than anything else, the Code has
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Association, its Member Boards, State Associations, and Institutes,
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Origins of the Code
In today’s world, preoccupied as it is with social responsibility and
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in 1913.
The history of the real estate business for the preceding 150
years was a history of rampant land speculation, exploitation,
and disorder. It was an era before the adoption of state regulatory
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The Code and the Law
If it is applied inconsistently, it becomes arbitrary and hence
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unreasonable and hence dogmatic. If it is used in ignorance, it
becomes meaningless; if it is used inappropriately, it becomes
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irrational.
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its application or implementation, must always be construed
harmoniously and consistently with the law.
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power of the state but rather by the principles of contract.
Acceptance of R EALTOR ® membership creates a form of
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No matter how similar the mandates of the Code may be to the
dictates of the license laws and other legislation, the difference
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This is why the R EALTORS® Code of Ethics must be applied
with continuing and conscientious concern for procedural due
process. Procedural due process is both an explicit and implied
requirement of the Code. It is required explicitly by Article [14],
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reliance on the Golden Rule. The due process requirement, after
all, requires nothing more than a fair and diligent search for the
truth³ZLWKDQRSSRUWXQLW\IRUDOOIDFWVWREHJDWKHUHGDOOYLHZV
to be heard; all defenses to be raised and all prejudice or bias
to be expunged. But while due process requires nothing more
than a fair and diligent search for the truth, so the Code may
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LVQRDFFHSWDEOHOHYHORIXQIDLUQHVVQRSHUPLVVLEOHVOLJKWRI
the search.
The relation of the Code to the law is two-fold. First, the Code
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which are beyond the capacity or power of the law to mandate, and
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to the duties and obligations which it imposes.
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principles to real estate transactions.
Conclusion
In its Code of Ethics the family of REALTORS® has been offered
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of the Code for shortsighted gains at the expense of farsighted
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guaranteeing his future.
When the Code was first adopted, there were no statutory
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license laws is in large measure the result of the Code. Thus, as
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obligations assumed by REALTORS®YROXQWDULO\XQGHUWKH&RGH
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licensee’s acceptance to protect the whole public and not merely
WKRVHVHUYHGE\REALTORS®.
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the goals of the Code must be reached step by step, following the
path of due process rather than the line of least resistance.
To REALTORS®, the Code of Ethics offers the lessons of hindsight,
the guidance of foresight, and the understanding of insight—A
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continues, certainly in recent years, with the general licensure of
the profession, the role of the Code is sensitizing REALTORS® to
the full implications and applications of their legal obligations has
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the Code so intimately with such legal doctrines as implied
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EXVLQHVVDQGSURIHVVLRQWKHODZQHHGQHYHUEHLWVVXEVWLWXWH
6RORQJDVWKHDVSLUDWLRQWREHWWHUVHUYHWKHSXEOLFUHPDLQV
WKHXQGHUO\LQJFRQFHSWRIWKH&RGHLWPXVWHYROYHDQGJURZLQ
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the law.
The Code and Its Use
There is no idea which cannot be misapplied; no faith which
cannot be exploited; no concept which cannot be abused; and no
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RIWKH&RGHDQGWKHYDOXHRILWVYLVLRQRIWKHUHDOHVWDWHLQGXVWU\
depends ultimately upon its use.
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Preface
The Code of Ethics of the
NATIONAL ASSOCIATION OF REALTORS®
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The Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®
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of the National Association of Real Estate Boards (Association’s
name changed in 1974 to NATIONAL ASSOCIATION OF REALTORS®).
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with the Code was made a condition of membership in the National
Association in 1924, and has remained so to date.
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should an allegation be made that a Board has failed to enforce
the Code of Ethics may be found on Realtor.org and in Appendix
9,,,WRPart Four,7KH(WKLFV+HDULQJRIWKLV0DQXDO
The %\ODZVRIWKH1DWLRQDO$VVRFLDWLRQ$UWLFOH,9&RGHRI(WKLFV
and Member Board Business Practices, state:
The establishment of a Code of Ethics recognizing high standards
of business practice and professional conduct by real estate
practitioners was a primary reason for the establishment of
the National Association in 1908. Men of integrity wanted to
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PHHWLQJVFOHDUO\UHÁHFWVWKHGHVLUHWRDYRLGFDUHOHVV´KRUVHEDFNµ
RUXQLQIRUPHGDGYLFHWRWKRVHZKRUHOLHGXSRQWKHPDQGWRDYRLG
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of law and equity. Most of all, they recognized that self-discipline
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Code as ‘similar to that of the American Bar Association’ then
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‘A Committee on the Code of Ethics,’ he announced, ‘is
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a Code which shall be as the Ten Commandments to the real
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and that a recommendation be sent to the local Boards that
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Code of Ethics of the National Association, and their adoption
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to be the second trade or business group in the United States
to follow examples of the professions of medicine, law, and
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funds or property, willful discrimination, or fraud resulting in
substantial economic harm, bring such matters to the attention of
the appropriate Board or Association of REALTORS®.
Any Code of Ethics is meaningless unless it can be clearly
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support the Code, the Professional Standards Committee of the
National Association has adopted Standards of Practice which
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the Code of Ethics.
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adopted in 1913, established the tone for the 23 separate ethical
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Code. It read: “The real estate agent should be absolutely honest,
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is an employee — that his client is his employer and is entitled to
WKHEHVWVHUYLFHWKHUHDOHVWDWHPDQFDQJLYe — his information,
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To assist with the proper application of the Code of Ethics and
Standards of Practice, approximately 147 different numbered
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publication.
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DYLDEOHDQGUHOHYDQWJXLGHEHFDXVHLWLVDOLYLQJGRFXPHQW$V
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has been amended approximately 45 times since its adoption.
7KHDPHQGPHQWVDOOKDYHUHÁHFWHGDQLQWHUHVWLQUHÀQLQJRQ
a continuing basis, the principles obligating R EALTORS® and
R EALTOR-ASSOCIATE ®s to the highest and best standards of
personal and professional conduct in their practice of real estate.
6XFKDPHQGPHQWVKDYHVRXJKWWRVLPSOLI\FODULI\DQGDPSOLI\
the ethical principles established to preclude antisocial business
practices and to accommodate current legal, cultural, and national
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7KHVHFDVHVDUHLQWHQGHGWREHXVHGPXFKOLNHGHFLVLRQVLQMXGLFLDO
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LQYROYLQJFKDUJHVRIDOOHJHGXQHWKLFDOFRQGXFWE\R EALTORS®
andRUREALTOR-ASSOCIATE®SDQGSURYLGHLQVLJKWLQWRWKHSURSHU
form of complaint, the procedures of a Board of REALTORS® in
processing the complaint to ensure due process, and the rationale
of the peer judgment rendered in each case. These cases do not
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of justice, equity, and propriety. Because of this, a wide range of
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sanctions include:
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(b) /HWWHURI5HSULPDQGZLWKFRS\WREHSODFHGLQPHPEHU·VÀOH;
(c) Requirement that member attend the ethics portion of
the Board Indoctrination Course or other appropriate
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consideration cost, location, and duration;
(d) $
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$PHQGHG;
(e) Member placed on probation for a stated period of time not
to exceed one (1) year;
(f) 0
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less than thirty (30) days nor more than one (1) year, with
automatic reinstatement of membership in good standing
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(30) day minimum and one (1) year maximum do not apply
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membership duty (e.g., failure to pay dues or fees or failure to
complete educational requirements). The Directors may order
suspension unconditionally, or they may, at their discretion,
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Board, within such time as the Directors shall designate, an
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any three (3) year period, in lieu of accepting suspension.
But, if the conduct for which suspension is ordered consists
of failure to submit a dispute to arbitration, the Directors
The Code of Ethics and Standards of Practice were amended in
1914, 1915, 1924, 1928, 1950, 1952, 1955, 1956, 1961, 1962, 1974,
1975, 1976, 1977, 1980, 1982, 1984, 1985, 1986, 1987, 1989, 1990,
1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001,
2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012,
DQG7KH6WDQGDUGVRI3UDFWLFHZHUHÀUVWDGRSWHGLQ
before then, there were only Articles. The Standards of Practice
were printed separately from the Articles from 1975 through
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following. It wasn’t until 1985 that the Standards of Practice and
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following each Article.
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That premise is that the interest of the nation and its citizens “. . .
impose obligations [upon the REALTOR®] beyond those of ordinary
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duty to which R EALTORS®VKRXOGGHGLFDWHWKHPVHOYHVDQGIRU
ZKLFKWKH\VKRXOGEHGLOLJHQWLQSUHSDULQJWKHPVHOYHVREALTORS®,
WKHUHIRUHDUH]HDORXVWRPDLQWDLQDQGLPSURYHWKHVWDQGDUGVRI
their calling and share with their fellow REALTORS® a common
responsibility for its integrity and honor. The term REALTORS®
has come to connote competency, fairness, and high integrity in
EXVLQHVVUHODWLRQV1RLQGXFHPHQWRISURÀWDQGQRLQVWUXFWLRQIURP
FOLHQWVFDQHYHUMXVWLI\GHSDUWXUHIURPWKLVLGHDOµ
,QNHHSLQJZLWKWKLVSKLORVRSKLFDOSUHPLVHREALTORS®KDYLQJ
GLUHFWSHUVRQDONQRZOHGJHRIFRQGXFWWKDWPD\YLRODWHWKH&RGH
RI(WKLFVLQYROYLQJPLVDSSURSULDWLRQRIFOLHQWRUFXVWRPHU
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without submitting to the arbitration in addition to paying
the assessment, unless in the meanwhile the dispute has been
submitted to a court of law without any objection by any party
that it should be arbitrated; ($PHQGHG)
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three (3) years, with reinstatement of membership to be by
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be written clearly articulating all intended consequences,
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($PHQGHG6)
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than thirty (30) days nor more than one (1) year; termination
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(3) years; ($PHQGHG6)
(i) R EALTORS® who are not members of a Board from which
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and subscribers remain obligated under the Code of
Ethics on the same terms and conditions as REALTOR® and
REALTOR-ASSOCIATE® members of that Board. Discipline that
may be imposed may be the same as but shall not exceed the
discipline that may be imposed on that Board’s members.
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Boards to respect, to the extent feasible, decisions rendered
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Boards of REALTORS®. For ease of reference, the Manual contains
VHSDUDWHVHFWLRQVFRYHULQJEthics and Arbitration.
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art One —Ethics General Provisions and Part Seven—
Arbitration General Provisions contain such things as
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art Two and Part Eight, Membership Duties and Their
Enforcement describe, among other things, the duties of
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Committees and Professional Standards Committees.
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art Three and Part Nine, The Grievance Committee
describe the authority and appropriate function of the
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arbitration requests.
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art Four—The Ethics Hearing explains the method of
handling an ethics complaint from the time of original receipt
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Board in respect of the complaint.
Part Ten—Arbitration of Disputes deals with the arbitration
of business disputes between R EALTORS® associated with
GLIIHUHQWÀUPVDULVLQJRXWRIWKHLUUHODWLRQVKLSDVR EALTORS®,
and with arbitration of certain other disputes subject to
prescribed conditions explained in Section 44 of Part Ten. If
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WRKDYHORFDOOHJDOFRXQVHOUHYLHZSURFHGXUHVDVDGRSWHG
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accord due process and are consistent with the requirements
of applicable law. (Further, as noted on the title page of this
Manual, professional standards procedures of Member Boards
PXVWUHÁHFWVXEVWDQWLYHO\WKHDSSURYHGGXHSURFHVVSROLFLHV
and procedures of this Manual in order to ensure Board
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Board in connection with Board enforcement of the Code
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consistent with applicable state law.)
In addition to any discipline imposed, Boards and Associations
PD\DWWKHLUGLVFUHWLRQLPSRVHDGPLQLVWUDWLYHSURFHVVLQJIHHV
QRWWRH[FHHGDJDLQVWUHVSRQGHQWVIRXQGLQYLRODWLRQRIWKH
&RGHRI(WKLFVRURWKHUPHPEHUVKLSGXWLHV$Q\DGPLQLVWUDWLYH
processing fee will be in addition to, and not part of, any
disciplinary sanction imposed. Boards and Associations shall
GHWHUPLQHLQDGYDQFHZKHQDQGXQGHUZKDWFLUFXPVWDQFHV
DGPLQLVWUDWLYHSURFHVVLQJIHHVZLOOEHLPSRVHGVRWKDWLPSRVLWLRQ
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Acceptance of a Code of Ethics by the membership depends on
its fair, reasonable, and impartial enforcement. Strict attention
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WKH&RGHPXVWQHYHULQYROYHDVDFULÀFHRIWKHULJKWWRFRXQVHORU
of any other procedural safeguard. Consistent with this concept,
the National Association has required each Member Board to
establish a standing Professional Standards Committee and
to establish appropriate Professional Standards procedures
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recommends to Member Boards the adoption of the &RGHRI
(WKLFVDQG$UELWUDWLRQ0DQXDO of the National Association, as
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comply with local law.
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art Fourteen—State Association Professional Standards
Committee describes the function, jurisdiction, and
responsibilities of the State Association Professional Standards
Committee as to Code enforcement, including arbitration of
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Part Eleven—Interboard Arbitration tells how interboard
arbitration may be handled.
Part Five and Part Twelve — Conduct of an Ethics or
Arbitration HearingSURYLGHDGHWDLOHGSURFHGXUDOJXLGHIRU
WKHFRQGXFWRIDQ(WKLFVRU$UELWUDWLRQ+HDULQJ
The &RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDOFRQWDLQVDSSURYHG
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arbitration of business disputes for inclusion in the bylaws of local
Part Six and Part Thirteen—Specimen FormsSURYLGHIRUPV
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3
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Boards for their use in the processing of ethics complaints and
arbitration requests.
Since the adoption of the Code of Ethics of the National
Association in 1913, thousands of disciplinary hearings and
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in each case was to promote honesty, integrity, fairness, and
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LQIRUPHGMXGJPHQWRIRQH·VSHHUV7KHKHDULQJVKDYHSURYLGHG
MXVWLFHWKDWKDVEHHQERWKWLPHO\DQGHFRQRPLF7KH\KDYH
UHOLHYHGRYHUEXUGHQHGFLYLOFRXUWVDQG\HWKDYHUHVROYHGFKDUJHV
against R EALTORS®HIIHFWLYHO\DQGZLWKRXWWKHGLVWRUWLRQDQG
LQMXU\WRUHSXWDWLRQWKDWVRRIWHQDWWHQGVOLWLJDWLRQ,Q-DQXDU\
&KLHI-XVWLFH:DUUHQ%XUJHURIWKH866XSUHPH&RXUW
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by R EALTORS® and R EALTOR-ASSOCIATE®s of America for many
years.
Article 14 of the Code of Ethics obligates R EALTORS® and
R EALTOR-ASSOCIATE ®s to place all pertinent facts before the
proper tribunal of the Member Board or any institute, society,
or council of which they are members if they are charged
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DQ\GLVFLSOLQDU\SURFHHGLQJRULQYHVWLJDWLRQ7KHR EALTOR®
or R EALTOR-ASSOCIATE ® is expected to abide by the decision
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been exhausted. If a member refuses to accept a disciplinary
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of suspension or expulsion, the Board will, if there remains
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VDQFWLRQVHIIHFWLYHRQO\XSRQHQWU\RIÀQDOMXGJPHQWLQDFRXUW
of competent jurisdiction in a suit by the Board for declaratory
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rights of the member.
$VDYLDEOHOLYLQJGHYHORSLQJJXLGHIRUREALTORS®, the Code will
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The NATIONAL ASSOCIATION OF REALTORS®DQGWKHUHVSHFWLYH6WDWH
Associations and Member Boards of R EALTORS® are committed
and pledged to such protection.
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4
Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2014
Where the word REALTORS® is used in this Code and Preamble, it
shall be deemed to include REALTOR-ASSOCIATE®s.
The term REALTOR® has come to connote competency, fairness, and
high integrity resulting from adherence to a lofty ideal of moral
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LQVWUXFWLRQIURPFOLHQWVHYHUFDQMXVWLI\GHSDUWXUHIURPWKLVLGHDO
While the Code of Ethics establishes obligations that may be
higher than those mandated by law, in any instance where the
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In the interpretation of this obligation, R EALTORS®FDQWDNHQR
safer guide than that which has been handed down through the
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WKDWRWKHUVVKRXOGGRWR\RXGR\HHYHQVRWRWKHPµ
Preamble
Under all is the land. Upon its wise utilization and widely allocated
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RIRXUFLYLOL]DWLRQREALTORS® should recognize that the interests
of the nation and its citizens require the highest and best use of the
land and the widest distribution of land ownership. They require
the creation of adequate housing, the building of functioning
FLWLHVWKHGHYHORSPHQWRISURGXFWLYHLQGXVWULHVDQGIDUPVDQG
WKHSUHVHUYDWLRQRIDKHDOWKIXOHQYLURQPHQW
Accepting this standard as their own, REALTORS®SOHGJHWRREVHUYH
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Duties to Clients and Customers
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their calling and share with their fellow REALTORS® a common
responsibility for its integrity and honor.
Article 1
When representing a buyer, seller, landlord, tenant, or other client
as an agent, REALTORS®SOHGJHWKHPVHOYHVWRSURWHFWDQGSURPRWH
the interests of their client. This obligation to the client is primary,
EXWLWGRHVQRWUHOLHYHREALTORS® of their obligation to treat all
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other party in a non-agency capacity, REALTORS® remain obligated
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VWULYHWREHFRPHDQGUHPDLQLQIRUPHGRQLVVXHVDIIHFWLQJUHDO
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the fruit of their experience and study with others. They identify
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by assisting appropriate regulatory bodies, to eliminate practices
which may damage the public or which might discredit or bring
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willful discrimination, or fraud resulting in substantial economic
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tandard of Practice 1-1
REALTORS®, when acting as principals in a real estate transaction,
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person, electronically, or through any other means.
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on agents by law or regulation shall not be imposed by this Code
of Ethics on REALTORS® acting in non-agency capacities.
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IURPPDNLQJXQVROLFLWHGFRPPHQWVDERXWRWKHUSUDFWLWLRQHUV,Q
instances where their opinion is sought, or where REALTORS®EHOLHYH
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or entity(ies) with whom a R EALTOR® or a R EALTOR®·VÀUP
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relationship with the R EALTOR® or the R EALTOR®’s firm;
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not subject to a representation relationship with the REALTOR® or
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as an agent or in a legally recognized non-agency capacity.
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of clients; or
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a) clients consent after full disclosure; or
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d) it is necessary to defend a REALTOR® or the REALTOR®’s
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Standard of Practice 1-3
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Standard of Practice 1-10
REALTORS® shall, consistent with the terms and conditions of their
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competently manage the property of clients with due regard for
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premises. $GRSWHG$PHQGHG
Standard of Practice 1-5
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in the same transaction only after full disclosure to and with
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Standard of Practice 1-6
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Standard of Practice 1-11
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to protect it against reasonably foreseeable contingencies and
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Standard of Practice 1-7
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counsel prior to acceptance of a subsequent offer except
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1) the R EALTOR®’s company policies regarding cooperation
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legally recognized non-agency capacities;
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Standard of Practice 1-8
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to their clients after an offer has been accepted unless otherwise
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a pre-existing contract has been terminated. $GRSWHG
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1) the REALTOR®’s company policies regarding cooperation;
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parties;
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agent, etc., and
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not treat the existence, terms, or conditions of offers as
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parties. $GRSWHG5HQXPEHUHG$PHQGHG
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any agency relationship or non-agency relationship recognized
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professional relationships with their clients:
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landlords, establish the terms and conditions of offers to
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includes an offer of compensation. Terms of compensation,
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beginning efforts to accept the offer of cooperation. $PHQGHG
Standard of Practice 1-15
REALTORS®, in response to inquiries from buyers or cooperating
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of offers on the property. Where disclosure is authorized,
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obtained by the listing licensee, another licensee in the listing
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must be communicated to the other REALTOR® prior to the time
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transaction. $PHQGHG
Standard of Practice 1-16
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Article 2
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concealment of pertinent facts relating to the property or the
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outside the scope of their real estate license, or to disclose facts
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Standard of Practice 2-3
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arrangements (i.e., listings where one amount of commission
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practical, disclose the existence of such arrangements to potential
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an offer to purchase or lease. $PHQGHG
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Standard of Practice 2-5
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which are expressly referenced in law or regulation as not
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in those areas required by their real estate licensing authority.
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concerning property under a management or listing
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Article 3
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when cooperation is not in the client’s best interest. The
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Standard of Practice 3-8
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to all parties and the informed consent of the REALTOR®’s client
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Standard of Practice 3-9
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financial institution, separated from their own funds, monies
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landlords. $GRSWHG
Article 9
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possible that all agreements related to real estate transactions
including, but not limited to, listing and representation
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conditions, obligations and commitments of the parties. A copy
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Article 4
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REALTORS®VKDOOUHYHDOWKHLURZQHUVKLSRULQWHUHVWLQZULWLQJWRWKH
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For the protection of all parties, R EALTORS ® shall use
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the use of written extensions or amendments. $PHQGHG
Standard of Practice 4-1
For the protection of all parties, the disclosures required by
$UWLFOHVKDOOEHLQZULWLQJDQGSURYLGHGE\REALTORS® prior
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being established prior to it being agreed to by a contracting
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Article 5
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to all affected parties.
Duties to the Public
Article 6
R EALTORS®VKDOOQRWDFFHSWDQ\FRPPLVVLRQUHEDWHRUSURÀW
on expenditures made for their client, without the client’s
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Article 10
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for reasons of race, color, religion, sex, handicap, familial status,
national origin, sexual orientation, or gender identity. REALTORS®
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sex, handicap, familial status, national origin, sexual orientation,
or gender identity. $PHQGHG
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KRPHRZQHU·VLQVXUDQFHZDUUDQW\SURJUDPVPRUWJDJHÀQDQFLQJ
title insurance, etc.), R EALTORS® shall disclose to the client or
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EHQHÀWVRUIHHVRWKHUWKDQUHDOHVWDWHUHIHUUDOIHHVWKHREALTOR®
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recommendation. $PHQGHG
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Standard of Practice 6-1
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disclosing such interest at the time of the recommendation
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formulate an accurate opinion, and
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to a property, transaction or professional assignment to a
party if such demographic information is (a) deemed by
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a recognized, reliable, independent, and impartial source.
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disclosed in reasonable detail. $GRSWHG5HQXPEHUHG
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pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following
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of report or different data set:
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2) date prepared
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4) limiting conditions, including statements of purpose(s) and
intended user(s)
5) any present or contemplated interest, including the possibility
RIUHSUHVHQWLQJWKHVHOOHUODQGORUGRUEX\HUVWHQDQWV
EDVLVIRUWKHRSLQLRQLQFOXGLQJDSSOLFDEOHPDUNHWGDWD
7) if the opinion is not an appraisal, a statement to that effect
8) disclosure of whether and when a physical inspection of the
property’s exterior was conducted
9) disclosure of whether and when a physical inspection of the
property’s interior was conducted
10) disclosure of whether the R EALTOR®KDVDQ\FRQÁLFWVRI
interest $PHQGHG
Standard of Practice 10-3
REALTORS® shall not print, display or circulate any statement or
DGYHUWLVHPHQWZLWKUHVSHFWWRVHOOLQJRUUHQWLQJRIDSURSHUW\
that indicates any preference, limitations or discrimination based
on race, color, religion, sex, handicap, familial status, national
origin, sexual orientation, or gender identity. $GRSWHG
5HQXPEHUHGDQG$PHQGHG
Standard of Practice 11-2
The obligations of the Code of Ethics in respect of real estate
disciplines other than appraisal shall be interpreted and applied
in accordance with the standards of competence and practice
which clients and the public reasonably require to protect their
rights and interests considering the complexity of the transaction,
WKHDYDLODELOLW\RIH[SHUWDVVLVWDQFHDQGZKHUHWKHREALTOR®
LVDQDJHQWRUVXEDJHQWWKHREOLJDWLRQVRIDÀGXFLDU\$GRSWHG
6WDQGDUGRI3UDFWLFH
$VXVHGLQ$UWLFOH´UHDOHVWDWHHPSOR\PHQWSUDFWLFHVµ
UHODWHVWRHPSOR\HHVDQGLQGHSHQGHQWFRQWUDFWRUVSURYLGLQJ
UHDOHVWDWHUHODWHGVHUYLFHVDQGWKHDGPLQLVWUDWLYHDQGFOHULFDO
VWDIIGLUHFWO\VXSSRUWLQJWKRVHLQGLYLGXDOV$GRSWHG
5HQXPEHUHGDQG
Article 11
7KHVHUYLFHVZKLFKR EALTORS®SURYLGHWRWKHLUFOLHQWVDQG
customers shall conform to the standards of practice and
FRPSHWHQFHZKLFKDUHUHDVRQDEO\H[SHFWHGLQWKHVSHFLÀFUHDO
HVWDWHGLVFLSOLQHVLQZKLFKWKH\HQJDJHVSHFLÀFDOO\UHVLGHQWLDO
UHDOHVWDWHEURNHUDJHUHDOSURSHUW\PDQDJHPHQWFRPPHUFLDO
DQGLQGXVWULDOUHDOHVWDWHEURNHUDJHODQGEURNHUDJHUHDOHVWDWH
appraisal, real estate counseling, real estate syndication, real estate
auction, and international real estate.
Standard of Practice 11-3
When REALTORS®SURYLGHFRQVXOWLYHVHUYLFHVWRFOLHQWVZKLFK
LQYROYHDGYLFHRUFRXQVHOIRUDIHHQRWDFRPPLVVLRQVXFK
DGYLFHVKDOOEHUHQGHUHGLQDQREMHFWLYHPDQQHUDQGWKHIHH
VKDOOQRWEHFRQWLQJHQWRQWKHVXEVWDQFHRIWKHDGYLFHRUFRXQVHO
JLYHQ,IEURNHUDJHRUWUDQVDFWLRQVHUYLFHVDUHWREHSURYLGHGLQ
DGGLWLRQWRFRQVXOWLYHVHUYLFHVDVHSDUDWHFRPSHQVDWLRQPD\
be paid with prior agreement between the client and REALTOR®.
$GRSWHG
REALTORS®VKDOOQRWXQGHUWDNHWRSURYLGHVSHFLDOL]HGSURIHVVLRQDO
VHUYLFHVFRQFHUQLQJDW\SHRISURSHUW\RUVHUYLFHWKDWLVRXWVLGH
WKHLUÀHOGRIFRPSHWHQFHXQOHVVWKH\HQJDJHWKHDVVLVWDQFHRIRQH
ZKRLVFRPSHWHQWRQVXFKW\SHVRISURSHUW\RUVHUYLFHRUXQOHVV
the facts are fully disclosed to the client. Any persons engaged to
SURYLGHVXFKDVVLVWDQFHVKDOOEHVRLGHQWLÀHGWRWKHFOLHQWDQGWKHLU
contribution to the assignment should be set forth. $PHQGHG
Standard of Practice 11-4
7KHFRPSHWHQF\UHTXLUHGE\$UWLFOHUHODWHVWRVHUYLFHV
contracted for between REALTORS® and their clients or customers;
the duties expressly imposed by the Code of Ethics; and the duties
imposed by law or regulation. $GRSWHG
Standard of Practice 11-1
When REALTORS®SUHSDUHRSLQLRQVRIUHDOSURSHUW\YDOXHRU
price they must:
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KDYHDFFHVVWRWKHLQIRUPDWLRQDQGUHVRXUFHVQHFHVVDU\WR
Article 12
R EALTORS ® shall be honest and truthful in their real estate
communications and shall present a true picture in their
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WKHLUVWDWXVDVERWKRZQHUVODQGORUGVDQGDVREALTORS® or real
estate licensees. $PHQGHG
shall ensure that their status as real estate professionals is
UHDGLO\DSSDUHQWLQWKHLUDGYHUWLVLQJPDUNHWLQJDQGRWKHU
representations, and that the recipients of all real estate
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communications are from a real estate professional. $PHQGHG
Standard of Practice 12-7
Only REALTORS® who participated in the transaction as the listing
EURNHURUFRRSHUDWLQJEURNHUVHOOLQJEURNHUPD\FODLPWRKDYH
´VROGµWKHSURSHUW\3ULRUWRFORVLQJDFRRSHUDWLQJEURNHUPD\
SRVWD´VROGµVLJQRQO\ZLWKWKHFRQVHQWRIWKHOLVWLQJEURNHU
$PHQGHG
Standard of Practice 12-1
REALTORS®PD\XVHWKHWHUP´IUHHµDQGVLPLODUWHUPVLQWKHLU
DGYHUWLVLQJDQGLQRWKHUUHSUHVHQWDWLRQVSURYLGHGWKDWDOOWHUPV
JRYHUQLQJDYDLODELOLW\RIWKHRIIHUHGSURGXFWRUVHUYLFHDUH
clearly disclosed at the same time.$PHQGHG
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tandard of Practice 12-8
The obligation to present a true picture in representations to the
SXEOLFLQFOXGHVLQIRUPDWLRQSUHVHQWHGSURYLGHGRUGLVSOD\HG
on REALTORS®’ websites. REALTORS® shall use reasonable efforts
to ensure that information on their websites is current. When it
becomes apparent that information on a REALTOR®’s website is
no longer current or accurate, REALTORS®VKDOOSURPSWO\WDNH
FRUUHFWLYHDFWLRQ$GRSWHG
Standard of Practice 12-2
REALTORS®PD\UHSUHVHQWWKHLUVHUYLFHVDV´IUHHµRUZLWKRXWFRVW
HYHQLIWKH\H[SHFWWRUHFHLYHFRPSHQVDWLRQIURPDVRXUFHRWKHU
WKDQWKHLUFOLHQWSURYLGHGWKDWWKHSRWHQWLDOIRUWKHREALTOR®
WRREWDLQDEHQHÀWIURPDWKLUGSDUW\LVFOHDUO\GLVFORVHGDWWKH
same time. $PHQGHG
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tandard of Practice 12-9
R EALTOR®ÀUPZHEVLWHVVKDOOGLVFORVHWKHÀUP·VQDPHDQG
state(s) of licensure in a reasonable and readily apparent
manner.
Standard of Practice 12-3
The offering of premiums, prizes, merchandise discounts or
other inducements to list, sell, purchase, or lease is not, in itself,
XQHWKLFDOHYHQLIUHFHLSWRIWKHEHQHÀWLVFRQWLQJHQWRQOLVWLQJ
selling, purchasing, or leasing through the REALTOR®PDNLQJ
WKHRIIHU+RZHYHUREALTORS® must exercise care and candor
LQDQ\VXFKDGYHUWLVLQJRURWKHUSXEOLFRUSULYDWHUHSUHVHQWDWLRQV
VRWKDWDQ\SDUW\LQWHUHVWHGLQUHFHLYLQJRURWKHUZLVHEHQHÀWLQJ
from the REALTOR®·VRIIHUZLOOKDYHFOHDUWKRURXJKDGYDQFH
understanding of all the terms and conditions of the offer.
The offering of any inducements to do business is subject to
the limitations and restrictions of state law and the ethical
obligations established by any applicable Standard of Practice.
$PHQGHG
Websites of R E A LTORS ® and non-member licensees
DIÀOLDWHGZLWKDREALTOR®ÀUPVKDOOGLVFORVHWKHÀUP·VQDPHDQG
that REALTOR®’s or non-member licensee’s state(s) of licensure
in a reasonable and readily apparent manner. $GRSWHG
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tandard of Practice 12-10
R EALTORS ®’ obligation to present a true picture in their
DGYHUWLVLQJDQGUHSUHVHQWDWLRQVWRWKHSXEOLFLQFOXGHV,QWHUQHW
FRQWHQWSRVWHGDQGWKH85/VDQGGRPDLQQDPHVWKH\XVHDQG
prohibits REALTORS® from:
H QJDJLQJLQGHFHSWLYHRUXQDXWKRUL]HGIUDPLQJRIUHDOHVWDWH
EURNHUDJHZHEVLWHV
PDQLSXODWLQJHJSUHVHQWLQJFRQWHQWGHYHORSHGE\RWKHUV
OLVWLQJDQGRWKHUFRQWHQWLQDQ\ZD\WKDWSURGXFHVDGHFHSWLYH
or misleading result;
GHFHSWLYHO\XVLQJPHWDWDJVNH\ZRUGVRURWKHUGHYLFHV
PHWKRGVWRGLUHFWGULYHRUGLYHUW,QWHUQHWWUDIÀFRU
SUHVHQWLQJFRQWHQWGHYHORSHGE\RWKHUVZLWKRXWHLWKHU
attribution or without permission, or
5) to otherwise mislead consumers. $GRSWHG$PHQGHG
Standard of Practice 12-4
REALTORS®VKDOOQRWRIIHUIRUVDOHOHDVHRUDGYHUWLVHSURSHUW\
ZLWKRXWDXWKRULW\:KHQDFWLQJDVOLVWLQJEURNHUVRUDVVXEDJHQWV
REALTORS® shall not quote a price different from that agreed
XSRQZLWKWKHVHOOHUODQGORUG$PHQGHG
Standard of Practice 12-5
REALTORS®VKDOOQRWDGYHUWLVHQRUSHUPLWDQ\SHUVRQHPSOR\HG
E\RUDIÀOLDWHGZLWKWKHPWRDGYHUWLVHUHDOHVWDWHVHUYLFHVRU
listed property in any medium (e.g., electronically, print, radio,
WHOHYLVLRQHWFZLWKRXWGLVFORVLQJWKHQDPHRIWKDWREALTOR®’s
ÀUPLQDUHDVRQDEOHDQGUHDGLO\DSSDUHQWPDQQHU7KLV6WDQGDUG
RI3UDFWLFHDFNQRZOHGJHVWKDWGLVFORVLQJWKHQDPHRIWKHÀUP
may not be practical in electronic displays of limited information
HJ´WKXPEQDLOVµWH[WPHVVDJHV´WZHHWVµHWF6XFKGLVSOD\V
are exempt from the disclosure requirement established in this
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includes all required disclosures. $GRSWHG$PHQGHG
Standard of Practice 12-11
R EALTORS® intending to share or sell consumer information
JDWKHUHGYLDWKH,QWHUQHWVKDOOGLVFORVHWKDWSRVVLELOLW\LQD
reasonable and readily apparent manner. $GRSWHG
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REALTORS® shall not:
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picture, or
U HJLVWHU85/VRUGRPDLQQDPHVZKLFKLIXVHGZRXOGSUHVHQW
less than a true picture. $GRSWHG
Standard of Practice 12-6
REALTORS®ZKHQDGYHUWLVLQJXQOLVWHGUHDOSURSHUW\IRUVDOH
OHDVHLQZKLFKWKH\KDYHDQRZQHUVKLSLQWHUHVWVKDOOGLVFORVH
&RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDO
10
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and representations allows REALTORS® to use and display
only professional designations, certifications, and other
credentials to which they are legitimately entitled. $GRSWHG
6WDQGDUGRI3UDFWLFH
R EALTORS®VKDOOQRWNQRZLQJO\RUUHFNOHVVO\ÀOHIDOVHRU
unfounded ethics complaints. $GRSWHG
Standard of Practice 15-2
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statements about other real estate professionals, their businesses,
DQGWKHLUEXVLQHVVSUDFWLFHVLQFOXGHVWKHGXW\WRQRWNQRZLQJO\
RUUHFNOHVVO\SXEOLVKUHSHDWUHWUDQVPLWRUUHSXEOLVKIDOVH
or misleading statements made by others. This duty applies
whether false or misleading statements are repeated in person,
in writing, by technological means (e.g., the Internet), or by
any other means. $GRSWHG$PHQGHG
Article 13
R EALTORS®VKDOOQRWHQJDJHLQDFWLYLWLHVWKDWFRQVWLWXWHWKH
unauthorized practice of law and shall recommend that legal
counsel be obtained when the interest of any party to the
transaction requires it.
Article 14
,IFKDUJHGZLWKXQHWKLFDOSUDFWLFHRUDVNHGWRSUHVHQWHYLGHQFH
or to cooperate in any other way, in any professional standards
SURFHHGLQJRULQYHVWLJDWLRQR EALTORS® shall place all pertinent
facts before the proper tribunals of the Member Board or
affiliated institute, society, or council in which membership
LVKHOGDQGVKDOOWDNHQRDFWLRQWRGLVUXSWRUREVWUXFWVXFK
processes. $PHQGHG
Standard of Practice 15-3
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statements about other real estate professionals, their
businesses, and their business practices includes the duty to
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by others on electronic media the R EALTOR® controls once
the R EALTOR®NQRZVWKHVWDWHPHQWLVIDOVHRUPLVOHDGLQJ
$GRSWHG$PHQGHG
Standard of Practice 14-1
R EALTORS® shall not be subject to disciplinary proceedings
in more than one Board of R EALTORS® or affiliated institute,
society, or council in which they hold membership with
UHVSHFWWRDOOHJHGYLRODWLRQVRIWKH&RGHRI(WKLFVUHODWLQJ
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Article 16
REALTORS®VKDOOQRWHQJDJHLQDQ\SUDFWLFHRUWDNHDQ\DFWLRQ
LQFRQVLVWHQWZLWKH[FOXVLYHUHSUHVHQWDWLRQRUH[FOXVLYHEURNHUDJH
relationship agreements that other R EALTORS®KDYHZLWKFOLHQWV
$PHQGHG
Standard of Practice 14-2
R EALTORS®VKDOOQRWPDNHDQ\XQDXWKRUL]HGGLVFORVXUH
or dissemination of the allegations, findings, or decision
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FRQQHFWLRQZLWKDQDUELWUDWLRQKHDULQJRUSURFHGXUDOUHYLHZ
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tandard of Practice 16-1
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business practices which are otherwise ethical and does
not prohibit disagreements with other REALTORS®LQYROYLQJ
commission, fees, compensation or other forms of payment or
expenses. $GRSWHG$PHQGHG
Standard of Practice 14-3
R EALTORS®VKDOOQRWREVWUXFWWKH%RDUG·VLQYHVWLJDWLYHRU
professional standards proceedings by instituting or
threatening to institute actions for libel, slander, or defamation
against any party to a professional standards proceeding or
WKHLUZLWQHVVHVEDVHGRQWKHÀOLQJRIDQDUELWUDWLRQUHTXHVW
DQHWKLFVFRPSODLQWRUWHVWLPRQ\JLYHQEHIRUHDQ\WULEXQDO
$GRSWHG$PHQGHG
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tandard of Practice 16-2
Article 16 does not preclude R EALTORS®IURPPDNLQJJHQHUDO
DQQRXQFHPHQWVWRSURVSHFWVGHVFULELQJWKHLUVHUYLFHVDQG
WKHWHUPVRIWKHLUDYDLODELOLW\HYHQWKRXJKVRPHUHFLSLHQWV
PD\KDYHHQWHUHGLQWRDJHQF\DJUHHPHQWVRURWKHUH[FOXVLYH
relationships with another R EALTOR®. A general telephone
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SURVSHFWVLQDJLYHQJHRJUDSKLFDODUHDRULQDJLYHQSURIHVVLRQ
EXVLQHVVFOXERURUJDQL]DWLRQRURWKHUFODVVLÀFDWLRQRUJURXS
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Standard of Practice 14-4
R EALTORS ® shall not intentionally impede the Board’s
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Article 16 is intended to recognize as unethical two basic types
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Duties to REALTORS®
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listed their property with another REALTOR® and
Article 15
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misleading statements about other real estate professionals, their
businesses, or their business practices. $PHQGHG
Second, mail or other forms of written solicitations of prospects
ZKRVHSURSHUWLHVDUHH[FOXVLYHO\OLVWHGZLWKDQRWKHUREALTOR®
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transactions does not preclude other REALTORS®IURPVHHNLQJ
such prospect’s future business. $PHQGHG
when such solicitations are not part of a general mailing but
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other sources of information required by Article 3 and Multiple
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under offers of subagency or cooperation. $PHQGHG
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tandard of Practice 16-8
7 KHIDFWWKDWDQH[FOXVLYHDJUHHPHQWKDVEHHQHQWHUHGLQWR
with a R EALTOR® shall not preclude or inhibit any other
R EALTOR® from entering into a similar agreement after the
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tandard of Practice 16-3
Article 16 does not preclude R EALTORS® from contacting the
FOLHQWRIDQRWKHUEURNHUIRUWKHSXUSRVHRIRIIHULQJWRSURYLGH
RUHQWHULQJLQWRDFRQWUDFWWRSURYLGHDGLIIHUHQWW\SHRIUHDO
HVWDWHVHUYLFHXQUHODWHGWRWKHW\SHRIVHUYLFHFXUUHQWO\EHLQJ
SURYLGHGHJSURSHUW\PDQDJHPHQWDVRSSRVHGWREURNHUDJHRU
IURPRIIHULQJWKHVDPHW\SHRIVHUYLFHIRUSURSHUW\QRWVXEMHFW
WRRWKHUEURNHUV·H[FOXVLYHDJUHHPHQWV+RZHYHULQIRUPDWLRQ
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cooperation may not be used to target clients of other REALTORS®
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tandard of Practice 16-9
R EALTORS®, prior to entering into a representation agreement,
KDYHDQDIÀUPDWLYHREOLJDWLRQWRPDNHUHDVRQDEOHHIIRUWVWR
GHWHUPLQHZKHWKHUWKHSURVSHFWLVVXEMHFWWRDFXUUHQWYDOLG
H[FOXVLYHDJUHHPHQWWRSURYLGHWKHVDPHW\SHRIUHDOHVWDWH
VHUYLFH$PHQGHG
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tandard of Practice 16-10
R EALTORS ®DFWLQJDVEX\HURUWHQDQWUHSUHVHQWDWLYHV
RUEURNHUVVKDOOGLVFORVHWKDWUHODWLRQVKLSWRWKHVHOOHU
ODQGORUG·VUHSUHVHQWDWLYHRUEURNHUDWILUVWFRQWDFWDQGVKDOO
SURYLGHZULWWHQFRQILUPDWLRQRIWKDWGLVFORVXUHWRWKHVHOOHU
ODQGORUG·VUHSUHVHQWDWLYHRUEURNHUQRWODWHUWKDQH[HFXWLRQ
of a purchase agreement or lease. $PHQGHG
Standard of Practice 16-4
REALTORS® shall not solicit a listing which is currently listed
H[FOXVLYHO\ZLWKDQRWKHUEURNHU+RZHYHULIWKHOLVWLQJEURNHU
ZKHQDVNHGE\WKHREALTOR®, refuses to disclose the expiration
GDWHDQGQDWXUHRIVXFKOLVWLQJLHDQH[FOXVLYHULJKWWRVHOO
DQH[FOXVLYHDJHQF\RSHQOLVWLQJRURWKHUIRUPRIFRQWUDFWXDO
DJUHHPHQWEHWZHHQWKHOLVWLQJEURNHUDQGWKHFOLHQWWKH
REALTOR® may contact the owner to secure such information
and may discuss the terms upon which the REALTOR®PLJKWWDNH
DIXWXUHOLVWLQJRUDOWHUQDWLYHO\PD\WDNHDOLVWLQJWREHFRPH
HIIHFWLYHXSRQH[SLUDWLRQRIDQ\H[LVWLQJH[FOXVLYHOLVWLQJ
$PHQGHG
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tandard of Practice 16-11
On unlisted property, R EALTORS ®DFWLQJDVEX\HUWHQDQW
UHSUHVHQWDWLYHVRUEURNHUVVKDOOGLVFORVHWKDWUHODWLRQVKLSWR
WKHVHOOHUODQGORUGDWILUVWFRQWDFWIRUWKDWEX\HUWHQDQWDQG
VKDOOSURYLGHZULWWHQFRQILUPDWLRQRIVXFKGLVFORVXUHWRWKH
VHOOHUODQGORUGQRWODWHUWKDQH[HFXWLRQRIDQ\SXUFKDVHRU
lease agreement. $PHQGHG
REALTORS®VKDOOPDNHDQ\UHTXHVWIRUDQWLFLSDWHGFRPSHQVDWLRQ
IURPWKHVHOOHUODQGORUGDWÀUVWFRQWDFW$PHQGHG
Standard of Practice 16-5
REALTORS®VKDOOQRWVROLFLWEX\HUWHQDQWDJUHHPHQWVIURPEX\HUV
WHQDQWVZKRDUHVXEMHFWWRH[FOXVLYHEX\HUWHQDQWDJUHHPHQWV
+RZHYHULIDVNHGE\DREALTOR®WKHEURNHUUHIXVHVWRGLVFORVH
WKHH[SLUDWLRQGDWHRIWKHH[FOXVLYHEX\HUWHQDQWDJUHHPHQWWKH
REALTOR®PD\FRQWDFWWKHEX\HUWHQDQWWRVHFXUHVXFKLQIRUPDWLRQ
and may discuss the terms upon which the REALTOR® might enter
LQWRDIXWXUHEX\HUWHQDQWDJUHHPHQWRUDOWHUQDWLYHO\PD\HQWHULQWR
DEX\HUWHQDQWDJUHHPHQWWREHFRPHHIIHFWLYHXSRQWKHH[SLUDWLRQ
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$PHQGHG
Standard of Practice 16-12
R EALTORS®DFWLQJDVUHSUHVHQWDWLYHVRUEURNHUVRIVHOOHUV
ODQGORUGVRUDVVXEDJHQWVRIOLVWLQJEURNHUVVKDOOGLVFORVH
WKDWUHODWLRQVKLSWREX\HUVWHQDQWVDVVRRQDVSUDFWLFDEOH
DQGVKDOOSURYLGHZULWWHQFRQÀUPDWLRQRIVXFKGLVFORVXUHWR
EX\HUVWHQDQWVQRWODWHUWKDQH[HFXWLRQRIDQ\SXUFKDVHRU
lease agreement. $PHQGHG
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EX\HUWHQDQWVZKRDUHVXEMHFWWRDQH[FOXVLYHDJUHHPHQW
VKDOOEHFDUULHGRQZLWKWKHFOLHQW·VUHSUHVHQWDWLYHRUEURNHU
and not with the client, except with the consent of the client’s
UHSUHVHQWDWLYHRUEURNHURUH[FHSWZKHUHVXFKGHDOLQJVDUH
initiated by the client.
Standard of Practice 16-6
When R EALTORS® are contacted by the client of another
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directly or indirectly initiated such discussions, they may discuss
the terms upon which they might enter into a future agreement
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HIIHFWLYHXSRQH[SLUDWLRQRIDQ\H[LVWLQJH[FOXVLYHDJUHHPHQW
$PHQGHG
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a purchase offer or presenting a CMA) to prospects,
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DQ\H[FOXVLYHUHSUHVHQWDWLRQDJUHHPHQWR EALTORS® shall
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Standard of Practice 16-7
The fact that a prospect has retained a R EALTOR® as an
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prospects. $GRSWHG$PHQGHG
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out of their relationship as R EALTORS®, the R EALTORS® shall
mediate the dispute if the Board requires its members to mediate.
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is not required, REALTORS® shall submit the dispute to arbitration
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the matter.
Standard of Practice 16-14
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obligate them to pay more than one commission except with
their informed consent. $PHQGHG
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contractual disputes arising out of real estate transactions,
R EALTORS ® shall mediate or arbitrate those disputes in
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agree to be bound by any resulting agreement or award.
Standard of Practice 16-15
, QFRRSHUDWLYHWUDQVDFWLRQVR EALTORS® shall compensate
cooperating R EALTORS®SULQFLSDOEURNHUVDQGVKDOOQRW
compensate nor offer to compensate, directly or indirectly,
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contemplated by this Article includes the obligation of REALTORS®
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bound by any resulting agreement or award. $PHQGHG
Standard of Practice 16-16
R EALTORS®DFWLQJDVVXEDJHQWVRUEX\HUWHQDQWUHSUHVHQWDWLYHV
RUEURNHUVVKDOOQRWXVHWKHWHUPVRIDQRIIHUWRSXUFKDVHlease
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PDNHWKHVXEPLVVLRQRIDQH[HFXWHGRIIHUWRSXUFKDVHlease
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offer of compensation. $PHQGHG
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R EALTORS® in an arbitrable matter constitutes a refusal to
arbitrate. $GRSWHG
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tandard of Practice 17-2
Article 17 does not require REALTORS® to mediate in those
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in writing that they choose not to mediate through the Board’s
facilities. The fact that all parties decline to participate in
PHGLDWLRQGRHVQRWUHOLHYHREALTORS® of the duty to arbitrate.
Standard of Practice 16-17
REALTORS®DFWLQJDVVXEDJHQWVRUDVEX\HUWHQDQWUHSUHVHQWDWLYHV
RUEURNHUVVKDOOQRWDWWHPSWWRH[WHQGDOLVWLQJEURNHU·VRIIHURI
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FRQVHQWRIWKHOLVWLQJEURNHU$PHQGHG
Article 17 does not require REALTORS® to arbitrate in those
FLUFXPVWDQFHVZKHQDOOSDUWLHVWRWKHGLVSXWHDGYLVHWKH%RDUG
in writing that they choose not to arbitrate before the Board.
$PHQGHG
Standard of Practice 16-18
R EALTORS® shall not use information obtained from listing
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OLVWLQJVHUYLFHVRUWKURXJKRWKHURIIHUVRIFRRSHUDWLRQWR
UHIHUOLVWLQJEURNHUV·FOLHQWVWRRWKHUEURNHUVRUWRFUHDWH
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VXFKXVHLVDXWKRUL]HGE\OLVWLQJEURNHUV$PHQGHG
Standard of Practice 17-3
R EALTORS®, when acting solely as principals in a real estate
transaction, are not obligated to arbitrate disputes with other
REALTORS®DEVHQWDVSHFLÀFZULWWHQDJUHHPHQWWRWKHFRQWUDU\
$GRSWHG
Standard of Practice 16-19
6LJQVJLYLQJQRWLFHRISURSHUW\IRUVDOHUHQWOHDVHRUH[FKDQJH
VKDOOQRWEHSODFHGRQSURSHUW\ZLWKRXWFRQVHQWRIWKHVHOOHU
landlord. $PHQGHG
Standard of Practice 17-4
6SHFLÀFQRQFRQWUDFWXDOGLVSXWHVWKDWDUHVXEMHFWWRDUELWUDWLRQ
pursuant to Article 17 are:
Standard of Practice 16-20
REALTORS®, prior to or after their relationship with their current
ÀUPLVWHUPLQDWHGVKDOOQRWLQGXFHFOLHQWVRIWKHLUFXUUHQWÀUP
WRFDQFHOH[FOXVLYHFRQWUDFWXDODJUHHPHQWVEHWZHHQWKHFOLHQW
DQGWKDWÀUP7KLVGRHVQRWSUHFOXGHREALTORS® (principals)
from establishing agreements with their associated licensees
JRYHUQLQJDVVLJQDELOLW\RIH[FOXVLYHDJUHHPHQWV$GRSWHG
$PHQGHG
: KHUHDOLVWLQJEURNHUKDVFRPSHQVDWHGDFRRSHUDWLQJ
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to be the procuring cause of the sale or lease. In such cases
WKHFRPSODLQDQWPD\QDPHWKHÀUVWFRRSHUDWLQJEURNHUDV
respondent and arbitration may proceed without the listing
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RFFXUVEHWZHHQWZRRUPRUHFRRSHUDWLQJEURNHUVDQG
ZKHUHWKHOLVWLQJEURNHULVQRWDSDUW\WKHDPRXQWLQ
dispute and the amount of any potential resulting award is
limited to the amount paid to the respondent by the listing
EURNHUDQGDQ\DPRXQWFUHGLWHGRUSDLGWRDSDUW\WRWKH
WUDQVDFWLRQDWWKHGLUHFWLRQRIWKHUHVSRQGHQW$OWHUQDWLYHO\
Article 17
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disputes as defined in Standard of Practice 17-4 between
13
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LIWKHFRPSODLQWLVEURXJKWDJDLQVWWKHOLVWLQJEURNHUWKH
OLVWLQJEURNHUPD\QDPHWKHÀUVWFRRSHUDWLQJEURNHUDVD
third-party respondent. In either instance the decision of the
KHDULQJSDQHODVWRSURFXULQJFDXVHVKDOOEHFRQFOXVLYHZLWK
respect to all current or subsequent claims of the parties
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transaction. $GRSWHG$PHQGHG
by the seller or landlord and, subsequent to such actions,
claims to be the procuring cause of sale or lease. In such
FDVHVDUELWUDWLRQVKDOOEHEHWZHHQWKHOLVWLQJEURNHUDQGWKH
EX\HURUWHQDQWUHSUHVHQWDWLYHDQGWKHDPRXQWLQGLVSXWHLV
limited to the amount of the reduction of commission to
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6WDQGDUGRI3UDFWLFH
The obligation to arbitrate established in Article 17 includes
disputes between R EALTORS® (principals) in different states
in instances where, absent an established inter-association
arbitration agreement, the R EALTOR® (principal) requesting
DUELWUDWLRQDJUHHVWRVXEPLWWRWKHMXULVGLFWLRQRIWUDYHOWR
participate in, and be bound by any resulting award rendered
in arbitration conducted by the respondent(s) R EALTOR®’s
association, in instances where the respondent(s) REALTOR®’s
association determines that an arbitrable issue exists. $GRSWHG
:KHUHDEX\HURUWHQDQWUHSUHVHQWDWLYHLVFRPSHQVDWHGE\
WKHVHOOHURUODQGORUGDQGQRWE\WKHOLVWLQJEURNHUDQGWKH
OLVWLQJEURNHUDVDUHVXOWUHGXFHVWKHFRPPLVVLRQRZHG
by the seller or landlord and, subsequent to such actions,
DQRWKHUFRRSHUDWLQJEURNHUFODLPVWREHWKHSURFXULQJ
cause of sale or lease. In such cases the complainant
PD\QDPHWKHÀUVWFRRSHUDWLQJEURNHUDVUHVSRQGHQWDQG
DUELWUDWLRQPD\SURFHHGZLWKRXWWKHOLVWLQJEURNHUEHLQJ
named as a respondent. When arbitration occurs between
WZRRUPRUHFRRSHUDWLQJEURNHUVDQGZKHUHWKHOLVWLQJ
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of any potential resulting award is limited to the amount
paid to the respondent by the seller or landlord and any
amount credited or paid to a party to the transaction at
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FRPSODLQWLVEURXJKWDJDLQVWWKHOLVWLQJEURNHUWKH
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as a third-party respondent. In either instance the decision
of the hearing panel as to procuring cause shall be
FRQFOXVLYHZLWKUHVSHFWWRDOOFXUUHQWRUVXEVHTXHQWFODLPV
of the parties for compensation arising out of the underlying
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Explanatory Notes
The reader should be aware of the following policies which
KDYHEHHQDSSURYHGE\WKH%RDUGRI'LUHFWRUVRIWKH1DWLRQDO
Association:
,QÀOLQJDFKDUJHRIDQDOOHJHGYLRODWLRQRIWKH&RGHRI(WKLFVE\
a REALTOR®WKHFKDUJHPXVWUHDGDVDQDOOHJHGYLRODWLRQRIRQH
or more Articles of the Code. Standards of Practice may be cited
in support of the charge.
7KH6WDQGDUGVRI3UDFWLFHVHUYHWRFODULI\WKHHWKLFDOREOLJDWLRQV
LPSRVHGE\WKHYDULRXV$UWLFOHVDQGVXSSOHPHQWDQGGRQRW
substitute for, the Case Interpretations in ,QWHUSUHWDWLRQVRIWKH
&RGHRI(WKLFV.
: KHUHDEX\HURUWHQDQWUHSUHVHQWDWLYHLVFRPSHQVDWHG
E\WKHEX\HURUWHQDQWDQGDVDUHVXOWWKHOLVWLQJEURNHU
reduces the commission owed by the seller or landlord and,
VXEVHTXHQWWRVXFKDFWLRQVDQRWKHUFRRSHUDWLQJEURNHU
claims to be the procuring cause of sale or lease. In such
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EURNHU DV UHVSRQGHQW DQG DUELWUDWLRQ PD\ SURFHHG
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$OWHUQDWLYHO\LIWKHFRPSODLQWLVEURXJKWDJDLQVWWKHOLVWLQJ
EURNHUWKHOLVWLQJEURNHUPD\QDPHWKHÀUVWFRRSHUDWLQJ
EURNHUDVDWKLUGSDUW\UHVSRQGHQW,QHLWKHULQVWDQFHWKH
decision of the hearing panel as to procuring cause shall be
FRQFOXVLYHZLWKUHVSHFWWRDOOFXUUHQWRUVXEVHTXHQWFODLPV
of the parties for compensation arising out of the underlying
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Readers are cautioned to ensure that the most recent publications
are utilized.
:
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compensation pursuant to open listings with a seller or
landlord who agrees to participate in arbitration (or who
requests arbitration) and who agrees to be bound by the
GHFLVLRQ,QFDVHVZKHUHRQHRIWKHOLVWLQJEURNHUVKDVEHHQ
compensated by the seller or landlord, the other listing
EURNHUDVFRPSODLQDQWPD\QDPHWKHÀUVWOLVWLQJEURNHU
as respondent and arbitration may proceed between the
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: KHUHDEX\HURUWHQDQWUHSUHVHQWDWLYHLVFRPSHQVDWHG
E\WKHVHOOHURUODQGORUGDQGQRWE\WKHOLVWLQJEURNHUDQG
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14
Introduction to the
Code of Ethics and Arbitration Manual
The Code of Ethics is designed to establish a public and
professional consensus against which the practice and conduct of
REALTORS® and REALTOR-ASSOCIATE®s may be judged. REALTORS®
and R EALTOR-ASSOCIATE ®s in joining a Board signify their
intention to abide by the Code and thereby enhance the public
DQGSURIHVVLRQDOLPDJHRIWKHPVHOYHVDQGDOORWKHUREALTORS®.
$GKHUHQFHWRWKH&RGHLVWKHÀUVWJUHDWERQGEHWZHHQR EALTORS®
and R EALTOR-ASSOCIATE ®s throughout the country, and is an
REOLJDWLRQYROXQWDULO\DFFHSWHGE\WKHPWRHQVXUHKLJKVWDQGDUGV
RISURIHVVLRQDOFRQGXFWWRVHUYHWKHLQWHUHVWVRIWKHLUFOLHQWVDQG
customers.
disputes between R EALTORS®. For this reason, in complaints
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DUELWUDWLRQWKHGXDOFRPSODLQWPXVWEHVHYHUHGDQGDUELWUDWLRQ
heard prior to hearing any ethics charges.
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the Board and its members generally, as distinguished from an
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PHPEHUVLQGLYLGXDOO\DULVLQJIURPVRPHFRPPRQWUDQVDFWLRQ
LQYROYLQJWKHUHQGHULQJRIUHDOHVWDWHVHUYLFHV)RUWKLVUHDVRQLW
LVQHYHUDSSURSULDWHIRUD%RDUGLQDQHWKLFVSURFHHGLQJWRDZDUG
money damages to another REALTOR®.
Each Board is responsible for enforcing the Code of Ethics
pursuant to the Bylaws of the National Association. This duty
must be discharged conscientiously and responsibly. Conscientious
enforcement is essential if REALTORS® and REALTOR-ASSOCIATE®s
are to be recognized as professionals subscribing to standards
of business and ethical conduct higher than those required by
law. This duty must be discharged responsibly because of the
importance to R EALTORS® and R EALTOR-ASSOCIATE®s of their
reputation and the esteem of their peers. $PHQGHG
An ethics proceeding has two essential purposes: education and
YLQGLFDWLRQ,WLVHGXFDWLRQDOLQWKDWLWUDLVHVWKHFRQVFLRXVQHVV
RIPHPEHUVWRWKHPHDQLQJDQGVLJQLÀFDQFHRIWKH&RGH0DQ\
HWKLFVYLRODWLRQVRFFXULQDGYHUWHQWO\RUWKURXJKLJQRUDQFHDQG
WKHKHDULQJSURFHHGLQJVHUYHVDVDQHIIHFWLYHHGXFDWLRQDOWRRO
,QÀOLQJDFKDUJHRIDQDOOHJHGYLRODWLRQRIWKH&RGHRI(WKLFV
by a REALTOR®WKHFKDUJHVKDOOUHDGDVDQDOOHJHGYLRODWLRQRI
one or more Articles of the Code. A Standard of Practice may be
cited only in support of the charge. The Preamble is aspirational.
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REALTORS® may be disciplined.
Membership in a Board of REALTORS® has been recognized by
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%RDUGOLPLWLQJRUGHQ\LQJWKHULJKWVDQGSULYLOHJHVRIDPHPEHU
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is for this reason that failure to accord due process to a REALTOR®
DFFXVHGRIDYLRODWLRQRIWKH&RGHRI(WKLFVFDQUHVXOWLQWKH
UHYHUVDORIWKH%RDUG·VGHFLVLRQE\WKHFLYLOFRXUWVDQGFDQH[SRVH
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GDPDJHVDQGRWKHUSHQDOWLHV'XHSURFHVVLVQRWDGLIÀFXOWFRQFHSW
but is an essential one. Due process means nothing more or less
than the right to a full and fair hearing before an impartial tribunal
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adequate opportunity to prepare a defense.
The Board has wide latitude in the sanctions which may be
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act responsibly in the application of these sanctions, attempting
DOZD\VWRPDNHWKHSXQLVKPHQWFRPPHQVXUDWHZLWKWKHRIIHQVH
5HFRPPHQGDWLRQVRI(WKLFV+HDULQJ3DQHOVPD\UDQJHIURPD
PLOG/HWWHURI:DUQLQJWRWHUPLQDWLRQRIPHPEHUVKLSDVIROORZV
LQRUGHURIVHYHULW\SURYLGHGWKDWVXFKDFWLRQVDUHVSHFLÀFDOO\
authorized in the Professional Standards procedures of the Board’s
bylaws:
(a) /
HWWHURI:DUQLQJZLWKFRS\WREHSODFHGLQPHPEHU·VÀOH
(b) /HWWHURI5HSULPDQGZLWKFRS\WREHSODFHGLQPHPEHU·VÀOH
(c) Requirement that member attend the ethics portion of the
Board Indoctrination Course or other appropriate course
RUVHPLQDUVSHFLILHGE\WKH+HDULQJ3DQHOZKLFKWKH
UHVSRQGHQWFRXOGUHDVRQDEO\DWWHQGWDNLQJLQWRFRQVLGHUDWLRQ
cost, location, and duration;
(d) $SSURSULDWHDQGUHDVRQDEOHÀQHQRWWRH[FHHG
$PHQGHG;
(e) Member placed on probation for a stated period of time not
less than thirty (30) days nor more than one (1) year;
(f) 0HPEHUVKLSRILQGLYLGXDOVXVSHQGHGIRUDVWDWHGSHULRGRI
time not less than thirty (30) days nor more than one (1) year,
with automatic reinstatement of membership in good standing
DWWKHHQGRIWKHVSHFLÀHGSHULRGRIVXVSHQVLRQ7KHWKLUW\
:KLOHWKHFRQFHSWRIGXHSURFHVVLVQRWGLIÀFXOWLWVDSSOLFDWLRQWR
VSHFLÀFVLWXDWLRQVLQYROYLQJHQIRUFHPHQWRIWKH&RGHRI(WKLFVFDQ
EHWURXEOHVRPH7KHUHIRUHEHIRUHWDNLQJDQ\GLVFLSOLQDU\DFWLRQ
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it is strongly recommended that the Board’s attorney be consulted.
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YLHZRIWKHFRQWURYHUV\0RUHRYHUFRXQVHOFDQDVVXUHWKDWWKH
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Procedures outlined in the &RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDO
ZLOOVDWLVI\PRVWUHTXLUHPHQWVRIGXHSURFHVVEXWWKHLQGLYLGXDO
differences in the laws of each state will require interpretation
and possible supplementation of local counsel.
In exercising its responsibility for the enforcement of the
Code of Ethics, it is particularly important for the Board to
GLVWLQJXLVKEHWZHHQFRQWURYHUVLHVZKLFKDUHSURSHUO\WKHVXEMHFW
RIDUELWUDWLRQDQGFRQWURYHUVLHVLQYROYLQJWKH&RGHRI(WKLFV7KH
&RGHRI(WKLFVPXVWQRWEHXVHGDVDFOXERUOHYHUWRVHWWOHEXVLQHVV
8QGHUFHUWDLQSUHVFULEHGFRQGLWLRQVDUELWUDWLRQPD\EHSURYLGHG
between a member and a nonmember of the Board, as, for example,
between a REALTOR® and a client of the REALTOR®.
15
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(30) day minimum and one (1) year maximum do not apply
ZKHUHVXVSHQVLRQLVLPSRVHGIRUDUHPHGLDEOHYLRODWLRQRID
membership duty (e.g., failure to pay dues or fees or failure to
complete educational requirements. The Directors may order
suspension unconditionally, or they may, at their discretion,
JLYHWKHGLVFLSOLQHGPHPEHUWKHRSWLRQRISD\LQJWRWKH
Board, within such time as the Directors shall designate, an
DVVHVVPHQWLQDQDPRXQWÀ[HGE\WKH'LUHFWRUVZKLFKPD\
QRWH[FHHGDQGZKLFKFDQEHXWLOL]HGRQO\RQFHLQ
any three (3) year period, in lieu of accepting suspension.
But, if the conduct for which suspension is ordered consists
of failure to submit a dispute to arbitration, the Directors
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without submitting to the arbitration in addition to paying
the assessment, unless in the meanwhile the dispute has been
submitted to a court of law without any objection by any party
that it should be arbitrated; $PHQGHG
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three (3) years, with reinstatement of membership to be by
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be written clearly articulating all intended consequences,
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$PHQGHG
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DOVREHXWLOL]HG6XVSHQVLRQRI0/6VHUYLFHVPD\EHQROHVV
than thirty (30) days nor more than one (1) year; termination
RI0/6VHUYLFHVVKDOOEHIRUDVWDWHGSHULRGRIRQHWRWKUHH
(3) years; $PHQGHG
(i) R EALTORS® who are not members of a Board from which
WKH\SXUFKDVHWKHPXOWLSOHOLVWLQJVHUYLFHDQGWKHLUXVHUV
and subscribers remain obligated under the Code of Ethics
on the same terms and conditions as R EALTORS ® and
R EALTOR-ASSOCIATE ® members of that Board. Discipline
that may be imposed may be the same as but shall not exceed
the discipline that may be imposed on that Board’s members.
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Boards to respect, to the extent feasible, decisions rendered
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This Manual has been prepared as a guide to local Boards and
State Associations as to the procedures to be followed in bringing
disciplinary action against members or hearing business disputes
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1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000,
2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010,
DQG7KHÀUVWHGLWLRQRIWKLV0DQXDOZDVFORVHO\
patterned after the &RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDO of the
California Association of REALTORS® that had been utilized by the
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experience of California Boards and subsequently of Boards
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LQWKH0DQXDO7KHFXUUHQWHGLWLRQLQFRUSRUDWHVUHYLVHGSURYLVLRQV
WKDWUHÁHFWWKHH[SHULHQFHDQGVXJJHVWLRQVIURP0HPEHU%RDUGV
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of Directors of the National Association.
Authority:$UWLFOH9,,,6HFWLRQ&RQVWLWXWLRQ1DWLRQDO
Association of REALTORS®, states:
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EHWKHGXW\RIWKLV&RPPLWWHHWRLQWHUSUHWWKH&RGHRI(WKLFV
WRFRQVLGHUDQGUHFRPPHQGDSSURSULDWHDFWLRQRQLQTXLULHVRI
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WKHUHRIDQGWRUHFRPPHQGDPHQGPHQWVWKHUHWRDVLWGHHPV
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It shall be the duty of this Committee to:
(1) interpret the Code of Ethics
(2) consider and recommend appropriate action on inquiries
of Member Boards and Board Members concerning
enforcement thereof
(3) recommend amendments thereto as it deems necessary or
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by the local Board or State Association are consistent with
the policies adopted by the National Association and with the
requirements of law of the state in which they are located.
In addition to any discipline imposed, Boards and Associations
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processing fee will be in addition to, and not part of, any
disciplinary sanction imposed. Boards and Associations shall
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legal counsel. In this connection, it may be necessary for counsel
to modify certain of the procedures described to assure that they
are consistent with the state arbitration statute, if one is in effect.
The adoption and incorporation of this Manual into the bylaws
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may be necessary to ensure consistency with applicable law, will
also ensure appropriate enforcement of the Code of Ethics and
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Board attorney and refer to the Case Interpretations as well
as the Board bylaws and this &RGHRI(WKLFVDQG$UELWUDWLRQ
0DQXDO for additional assistance in properly enforcing the
Code of Ethics.
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16
the establishment of appropriate arbitration procedures by the
Member Boards. In the absence of adopting this recommended
Manual and incorporating it into the bylaws, a Member Board
is required by the National Association to establish appropriate
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due process in Professional Standards procedures of the Board,
and that they comply with applicable laws of the state. Such
SURFHGXUHVPXVWDOVRFRPSO\VXEVWDQWLYHO\ZLWKWKHSROLFLHV
and procedures set forth in this Manual to the extent that such
policies and procedures are consistent with applicable law.
Objectives:7KHFRXUWVKDYHKHOGWKDWPHPEHUVKLSLQDORFDO
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or not. The right to use the term “R EALTOR®µRU´R EALTORASSOCIATE ®µRUWRUHWDLQPHPEHUVKLSLQDORFDO%RDUGPD\
QRWEHZLWKGUDZQZLWKRXWWKHPHPEHUVEHLQJJLYHQUHDVRQDEOH
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´GXHSURFHVVµLQFRQWURYHUVLHVLQYROYLQJWKH&RGHRI(WKLFVRU
arbitration can, and in some instances already has, subjected the
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any local Board can adopt into its bylaws by reference, has the
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Board from year to year can readily learn how to proceed in
accordance with the Bylaws and general state law
(4) eliminate haphazard methods which may result in confusion
and dissatisfaction
(5) clothe the disciplinary body with dignity which will
demand respect by those brought before it
JLYHWKHGLVFLSOLQDU\ERG\VWDELOLW\VRWKDWLWPD\QRWEH
subject to personal pressure
(7) create a method of settling business disputes which will
FRPPDQGSXEOLFUHVSHFWDQGFRQÀGHQFHRIPHPEHUV
(8) better protect the Board against legal actions, whether
VXEVWDQWLYHRURIWKH´QXLVDQFHµQDWXUH
(9) UHTXLUHPHPEHUVWRDUELWUDWHWKRVHFRQWUDFWXDODQGVSHFLÀF
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IUDPHZRUNRIWKH%RDUGUDWKHUWKDQDFRXUWRIODZ
JLYHPHPEHUVUHDVRQDEOHDVVXUDQFHWKDW
(a) the Code of Ethics will be enforced
(b) the procedure will protect them against unfair and
unsubstantiated charges
F RQO\UHVSHFWHGDQGTXDOLÀHGSHUVRQVZLOOVLWLQSHHU
judgment
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17
&RGHRI(WKLFVDQG$UELWUDWLRQ0DQXDO
Statements of Professional Standards Policy
Applicable to Ethics Proceedings................................................................ 21
Part One — General Provisions Relating to Ethics ...................................... 29
6HFWLRQ³'HÀQLWLRQV5HODWLQJWR(WKLFV .................................................. 29
6HFWLRQ³4XDOLÀFDWLRQIRU7ULEXQDO ......................................................... 30
6HFWLRQ³'XW\WR*LYH(YLGHQFH ............................................................ 31
6HFWLRQ³5LJKWRI&RXQVHOWR$SSHDU..................................................... 31
6HFWLRQ³:LWQHVVHV ............................................................................... 32
6HFWLRQ³&RQGXFWRI+HDULQJ ................................................................. 32
6HFWLRQ³1RWLFHV .................................................................................... 33
6HFWLRQ³,QWHUSUHWDWLRQVRI%\ODZV ........................................................ 33
6HFWLRQ³:DLYHU ..................................................................................... 33
6HFWLRQ³&RPPXQLFDWLRQDQG&OHULFDO................................................. 33
6HFWLRQ³$WWHPSWWR,QÁXHQFH7ULEXQDO ................................................ 33
Part Two — Membership Duties and Their Enforcement .............................. 35
6HFWLRQ³'XWLHVRI0HPEHUVKLS ........................................................... 35
6HFWLRQ³3RZHUWR7DNH'LVFLSOLQDU\$FWLRQ......................................... 35
6HFWLRQ³1DWXUHRI'LVFLSOLQH ............................................................... 36
Section 15 — 6HOHFWLRQDQG$SSRLQWPHQWRIWKH*ULHYDQFH&RPPLWWHH ....... 37
6HFWLRQ³6HOHFWLRQDQG$SSRLQWPHQWRIWKH
3URIHVVLRQDO6WDQGDUGV&RPPLWWHH ......................................................... 37
Part Three — The Grievance Committee ........................................................ 39
6HFWLRQ³$XWKRULW\ ................................................................................ 39
Section 18 — Function ................................................................................ 39
6HFWLRQ³5HYLHZRI(WKLFV&RPSODLQW .................................................. 39
Part Four — The Ethics Hearing ...................................................................... 43
6HFWLRQ³,QLWLDWLQJDQ(WKLFV+HDULQJ ................................................... 43
6HFWLRQ³(WKLFV+HDULQJ ...................................................................... 45
6HFWLRQ³'HFLVLRQRI+HDULQJ3DQHO .................................................... 47
6HFWLRQ³$FWLRQRIWKH%RDUGRI'LUHFWRUV ............................................ 48
6HFWLRQ³,QLWLDO$FWLRQE\'LUHFWRUV ...................................................... 50
6HFWLRQ³3UHOLPLQDU\-XGLFLDO'HWHUPLQDWLRQ3ULRUWR
,PSRVLWLRQRI'LVFLSOLQH ............................................................................ 51
$SSHQGL[,WR3DUW)RXU³5ROHRIWKH%RDUGRI'LUHFWRUVLQ
5HYLHZLQJDQG5DWLI\LQJ(WKLFV+HDULQJ3DQHO'HFLVLRQV ....................... 52
$SSHQGL[,,WR3DUW)RXU³$SSURSULDWH,QWHUSUHWDWLRQRI
´3HUWLQHQW)DFWVµDV8VHGLQ$UWLFOHRIWKH&RGHRI(WKLFV.................... 53
$SSHQGL[,,,WR3DUW)RXU³5HVSRQVLELOLW\RI0HPEHU%RDUGVZLWK
5HVSHFWWR$UWLFOHRIWKH&RGHRI(WKLFV ............................................. 54
$SSHQGL[,9WR3DUW)RXU³5DWLRQDOHRI
'HFODUDWRU\5HOLHI3URFHGXUH .................................................................. 56
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$GPLQLVWUDWLYH7LPH)UDPHV .................................................................... 57
$SSHQGL[9,WR3DUW)RXU³&RRSHUDWLYH(QIRUFHPHQWRIWKH
&RGHRI(WKLFV.......................................................................................... 63
$SSHQGL[9,,WR3DUW)RXU³6DQFWLRQLQJ*XLGHOLQHV .................................... 65
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NATIONAL ASSOCIATION OF REALTORS®. ........................................................ 70
19
ETHICS
ETHICS
$SSHQGL[,;WR3DUW)RXU³3UHVHQWLQJDQG1HJRWLDWLQJ
0XOWLSOH2IIHUV ....................................................................................... 71
$SSHQGL[;WR3DUW)RXU³%HIRUH<RX)LOHDQ(WKLFV&RPSODLQW .............. 73
Part Five — Conduct of an Ethics Hearing .................................................... 77
2XWOLQHRI3URFHGXUHIRU&RQGXFWRIDQ(WKLFV+HDULQJ ............................ 77
2XWOLQHRI3URFHGXUHIRUDQ(WKLFV+HDULQJ,QYROYLQJD
&RPSODLQWDQG&RXQWHU&RPSODLQW ........................................................ 78
&KDLUSHUVRQҋV3URFHGXUDO*XLGH&RQGXFWRIDQ(WKLFV+HDULQJ .............. 80
&KDLUSHUVRQҋV3URFHGXUDO*XLGH
&RQGXFWRIDQ$SSHDO+HDULQJ(WKLFV ................................................. 83
Part Six — Specimen Forms for Ethics ........................................................... 87
)RUP(³(WKLFV&RPSODLQW ................................................................. 88
)RUP(³1RWLFHWR5HVSRQGHQW ......................................................... 89
)RUP(³5HSO\ ................................................................................... 90
)RUP(³*ULHYDQFH&RPPLWWHH5HTXHVWIRU,QIRUPDWLRQ
(WKLFV&RPSODLQW.................................................................................. 91
)RUP(³5HVSRQVHWR*ULHYDQFH&RPPLWWHH
5HTXHVWIRU,QIRUPDWLRQ ......................................................................... 92
)RUP(³*ULHYDQFH&RPPLWWHH5HSRUW)RUP ................................. 93
)RUP(³1RWLFHRI5LJKWWR&KDOOHQJH
7ULEXQDO0HPEHUV .................................................................................. 94
)RUP(³&KDOOHQJHWR4XDOLÀFDWLRQE\3DUWLHVWR
(WKLFV3URFHHGLQJ .................................................................................. 95
)RUP(³2IÀFLDO1RWLFHRI+HDULQJ .................................................... 96
)RUP(³2XWOLQHRI3URFHGXUHIRU(WKLFV+HDULQJ ............................. 97
)RUP(D³2XWOLQHRI3URFHGXUHIRU(WKLFV+HDULQJZLWK
&RPSODLQWDQG&RXQWHU&RPSODLQW ........................................................ 98
)RUP(³&HUWLÀFDWHRI4XDOLÀFDWLRQ ............................................... 100
)RUP(³'HFLVLRQRI(WKLFV+HDULQJ3DQHO .................................... 101
)RUP(³$FWLRQRIWKH%RDUGRI'LUHFWRUV ...................................... 103
)RUP(³5HTXHVWIRU$SSHDO............................................................ 105
)RUP(³2IÀFLDO1RWLFHRI$SSHDO+HDULQJ ...................................... 106
)RUP(³&KHFNOLVWRI3URIHVVLRQDO6WDQGDUGV&RQFHUQV ................. 108
)RUP(³6HDWLQJ$UUDQJHPHQWVIRU+HDULQJV .................................. 110
)RUP(³(WKLFV$FWLYLW\5HSRUW ........................................................ 112
)RUP(³2XWOLQHRI&RQWHQWRI3HWLWLRQIRU
'HFODUDWRU\5HOLHI .................................................................................. 112
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2SWLRQDO:DLYHURI5LJKWWR+HDULQJ ...................................................... 116
)RUP(³6DPSOH/HWWHURI5HSULPDQG /:DUQLQJ .............................. 118
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(WKLFV&RPSODLQW.................................................................................. 120
Code of Ethics and Arbitration Manual
20
Statements of Professional Standards Policy
Applicable to Ethics Proceedings
Approved by the Professional Standards Committee and the Board of Directors
of the NATIONAL ASSOCIATION OF REALTORS ®
11. REALTOR® principal may be joined in
DQ\FRPSODLQWÀOHGDJDLQVWDREALTOR®
nonprincipal or REALTOR-ASSOCIATE® licensed
with the REALTOR®SULQFLSDORUKLVÀUP
14. Statement of policy to State Associations
and local Boards concerning the state
real estate regulatory authority adopting and
incorporating the Code of Ethics of
the National Association into state law or
regulations
(a) The REALTOR® principal with whom a REALTOR® nonprincipal
or REALTOR-ASSOCIATE®LVDIÀOLDWHGVKDOOQRWEHDXWRPDWLFDOO\
MRLQHGLQDQ\HWKLFVFRPSODLQWDJDLQVWWKHR EALTOR®
nonprincipal or REALTOR-ASSOCIATE®. (Revised 4/95)
+LVWRULFDOO\WKH3URIHVVLRQDO6WDQGDUGV&RPPLWWHHRIWKH
1DWLRQDO$VVRFLDWLRQKDVVRXJKWWRSURPXOJDWHWKHDZDUHQHVV
DQGXQGHUVWDQGLQJRIREALTORS®DQGREALTOR-ASSOCIATE®s, as
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WKHPHPEHUVRIWKHFRQVWLWXHQW0HPEHU%RDUGVRIWKHNATIONAL
ASSOCIATION OF REALTORS®.
However, the REALTOR® SULQFLSDOPD\EHMRLQHGDVDUHVSRQGHQW
LQWKHFRPSODLQWE\DFWLRQRIWKHFRPSODLQDQWE\UHYLHZRIWKH
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REALTOR®SULQFLSDOZKRKDVEHHQDGGHGWRWKHFRPSODLQWKDVWKH
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Bylaws, NATIONAL ASSOCIATION OF REALTORS®.
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the REALTOR® nonprincipal or REALTOR-ASSOCIATE®LVMXGJHG
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merits of the case.
(c) Discipline of the R EALTOR®SULQFLSDOLIDQ\PD\YDU\
IURPWKDWLPSRVHGXSRQWKHR EALTOR® nonprincipal or
REALTOR-ASSOCIATE®.
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SXEOLF
12. Adoption of Code of Ethics or Standards
of Practice by Member Boards and State
Associations
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FRQVXPHUSURWHFWLRQREMHFWLYHVRIWKH1DWLRQDO$VVRFLDWLRQDQG
RIVWDWHDXWKRULWLHVLQVRPHLQVWDQFHVVWDWHDXWKRULWLHVKDYH
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WKDWZKDWLVJRRGIRUFOLHQWVRIR EALTORS®VKRXOGEHJRRGIRU
FOLHQWVRIHYHU\UHDOHVWDWHOLFHQVHH
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6WDQGDUGVRI3UDFWLFHRIWKHNATIONAL ASSOCIATION OF REALTORS®.
(Amended 11/89)
13. Articles and publications on the Code of Ethics
7KH1DWLRQDO$VVRFLDWLRQUHVHUYHVWKHH[FOXVLYHULJKWWRLQWHUSUHW
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WKHVWUHQJWKHQLQJRIWKHFRQVXPHUSURWHFWLRQDIIRUGHGE\WKHUHDO
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21
Code of Ethics and Arbitration Manual
Ethics
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ASSOCIATION OF REALTORS®DQGVXFKDFWLRQZRXOGGHVWUR\RU
VHULRXVO\HURGHWKHULJKWRIWKH$VVRFLDWLRQWROLPLWWKHXVDJHRI
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WKHH[WHQWIHDVLEOHGHFLVLRQVUHQGHUHGE\RWKHU%RDUGVLQYROYLQJ
VXVSHQVLRQRUH[SXOVLRQIURPPHPEHUVKLSRUIURP0/6(Amended
4/96)
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18. Local Member Board requests for the
conduct of ethics and arbitration hearings
by the State Association
$ORFDO%RDUGSULRUWRUHIHUULQJDQHWKLFVFRPSODLQWRUDUELWUDWLRQ
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LQFOXGHWKHDSSRLQWPHQWRINQRZOHGJHDEOHPHPEHUVRIWKH%RDUG
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Code of Ethics and Arbitration Manual
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Ethics
24. Formulation of Multi-Board or Regional
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35. Separation of ethics complaint and
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Code of Ethics and Arbitration Manual
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Ethics
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44. Effective dates of the Code of Ethics
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Code of Ethics and Arbitration Manual
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Ethics
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27
Code of Ethics and Arbitration Manual
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Code of Ethics and Arbitration Manual
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Ethics
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61
Code of Ethics and Arbitration Manual
Ethics
Administrative Time Frames—Ethics Proceedings
Situation
Time Table
Grievance
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Code of Ethics and Arbitration Manual
62
Appendix VI to Part Four
Cooperative Enforcement of the Code of Ethics
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be adequately large groups of knowledgeable, trained
R EALTORS ® and R EALTOR -A SSOCIATES ® from which the
necessary committees and tribunals can be appointed.
To this end, Boards and Associations are required to
enter into cooperative enforcement agreements to ensure
Boards and/or Associations have an aggregate total of
DWOHDVWWKUHHKXQGUHGÀIW\SULPDU\R EALTOR® and /
or R EALTOR-A SSOCIATE ® members from which to compose
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representation/ participation in any multi-board regional
cooperative enforcement agreement be on a pro-rata basis.
This requirement does not apply in instances where, in
the opinion of the state association, unique geographical
considerations (e.g., islands, remote locale, etc.), logistical
difficulties or other impediments make participation
prohibitive. All Boards regardless of size (except
Commercial Overlay Boards) must participate with at least
one other Board (which may be the state association) in a
cooperative enforcement agreement. 5HYLVHG
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Code of Ethics and Arbitration Manual
Ethics
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Code of Ethics and Arbitration Manual
64
Appendix VII to Part Four
Sanctioning Guidelines
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Code of Ethics and Arbitration Manual
Ethics
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Code of Ethics and Arbitration Manual
66
Ethics
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67
Code of Ethics and Arbitration Manual
Ethics
Disciplinary Guidelines
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Code of Ethics and Arbitration Manual
Ethics
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69
Code of Ethics and Arbitration Manual
Appendix VIII to Part Four
Procedures for Consideration of Alleged Violations
of Article IV, Section 2, Bylaws, NATIONAL ASSOCIATION OF REALTORS®
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Code of Ethics and Arbitration Manual
Ethics
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the complaint.
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Code of Ethics and Arbitration Manual
74
Ethics
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Conclusion
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ethics complaint.
Code of Ethics and Arbitration Manual
Part Five—
Conduct of an Ethics Hearing
2
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An ethics hearing must be conducted in a manner which is fair to
all parties. This means that the parties must know their rights and
responsibilities in advance so they may properly prepare and
present their positions. Procedures are required to assure an orderly
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of justice and truth dictate. However, in modifying established
procedures, care must be taken to assure that the rights and interests
of all parties are protected. For this reason, variation from prescribed
procedures should be reviewed with Board counsel and counsel
for the parties prior to implementation.
(5) The parties will be given an opportunity to present evidence
and testimony in their behalf and they may call witnesses.
(6) The parties and their legal counsel will be afforded an
opportunity to examine and cross-examine all witnesses
and parties.
(7) The panel members may ask questions at any time during
the proceedings.
Following are four (4) outlines. The first and second are
outlines of procedural information of interest and concern
primarily to the parties involved. This information should be
provided to them well in advance of any hearing (Form #E-9
or Form #E-9a, as appropriate, Part Six). The third outline
is primarily of interest to Hearing Panels and particularly to
the Chairpersons who preside over ethics hearings. The fourth
outline is primarily of interest to tribunals and particularly to
Chairpersons who preside over ethics appeals.
(8) The Chairperson may exclude any questions which he or she
deems irrelevant or argumentative.
(9) Each side may make a closing statement. The complainant
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(10) Adjournment of hearing.
Outline of Procedure for Ethics Hearing
(11) The Hearing Panel will go into executive session to decide
the case. (Revised 11/12)
_________________________________ Board of REALTORS®
Findings in ethics hearing: 7KHÀQGLQJDQGUHFRPPHQGDWLRQ
for discipline, if any, shall be reduced to writing by the Hearing
Panel and submitted to the Board of Directors in accordance with
the procedure of Part Four, Section 23 of this Manual.
State of ___________________________________________
(To be mailed in advance to both parties.)
Postponement of hearing: Postponement may be granted
if there are extenuating circumstances. Requests for postponement
must be made in writing. Permission can be given by the
Chairperson. All parties shall be advised of the date of the
rescheduled hearing.
Use of counsel: A party may be represented in any hearing
by legal counsel or by a REALTOR® of their choosing (or both).
However, parties may not refuse to directly respond to requests
for information or questions addressed to them by members of the
panel except on grounds of self-incrimination, or on other grounds
deemed by the panel to be appropriate. In this connection, the panel
need not accept the statements of counsel as being the statements
RIFRXQVHO·VFOLHQWLIWKHSDQHOGHVLUHVGLUHFWWHVWLPRQ\3DUWLHVVKDOO
be held responsible for the conduct of their counsel. Any effort by
counsel to harass, intimidate, coerce, or confuse the panel members
or any party to the proceedings, or any action by counsel which
is viewed by the panel as disruptive of the proceedings, shall be
grounds for exclusion of counsel. The decision to exclude counsel
for any of the foregoing reasons shall be the result of a majority
vote of the members of the panel and shall be nonappealable. In
the event counsel is excluded, the hearing shall be postponed to
DGDWHFHUWDLQQRWOHVVWKDQÀIWHHQQRUPRUHWKDQWKLUW\
days from the date of adjournment to enable the party to obtain
alternate counsel, provided, however, that such postponement
shall not be authorized if it appears to members of the panel that
the action of counsel has been undertaken by counsel to obtain a
postponement or delay of the hearing. (Revised 11/96)
Recording the hearing: The Board shall, and any party (may/may
not), at their own expense, have a court reporter or recorder present
at the hearing, or may record the proceeding, and, if transcribed,
shall furnish a copy to the Secretary.
Method and objective of procedure: The Hearing Panel shall
not be bound by the rules of evidence applicable in courts of
law, but shall afford all parties a full opportunity to be heard,
present witnesses, and offer evidence, subject to its judgment as
to relevance.
Due process procedure: The hearing will proceed as follows:
(1) Chairperson cites authority to hear case and explains reason
for hearing.
(2) The complaint will be read into the record.
(3) The testimony of all parties and witnesses will be sworn or
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except while testifying.
77
Code of Ethics and Arbitration Manual
Ethics
Outline of Procedure for Ethics Hearing
Involving a Complaint and a
Counter-Complaint
counter-complainant and refuting the allegations made by
the counter-complainant.
(a) The respondent/counter-complainant may question the
complainant/counter-respondent and/or his witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
_________________________________ Board of REALTORS®
State of ___________________________________________
(b) The Hearing Panel may question the complainant/
counter-respondent and/or his witness(es) immediately
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(To be mailed in advance to both parties.)
Postponement of hearing: Postponement may be granted if
there are extenuating circumstances. Requests for postponement
must be made in writing. Permission can be given by the Chair. If
the request is approved by the Chair, all parties shall be advised
of the rescheduled hearing date.
(7) Respondent/counter-complainant presents her case, offering
testimony and evidence from herself and/or witness(es) to
support the allegations of violations of the Code of Ethics
by the complainant/counter-respondent and rebutting the
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Ethics.
Recording the hearing: The Board shall, and any party (may/
may not), at their own expense, have a court reporter or recorder
present at the hearing, or may record the proceeding and, if
transcribed, shall furnish a copy to the Secretary.
(a) The complainant/counter-respondent may question the
respondent/counter-complainant and/or her witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
Method and objective of procedure: The Hearing Panel shall
not be bound by the rules of evidence applicable in courts of
law, but shall afford all parties a full opportunity to be heard,
present witnesses, and offer evidence, subject to its judgment
as to relevance.
(b) The Hearing Panel may question the respondent/
counter-complainant and/or her witness(es) immediately
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(8) The complainant/counter-respondent may present additional
testimony and evidence from himself and/or his witness(es)
to further support the allegations of violations of the Code
of Ethics by the respondent/counter-complainant and/or
refute the allegations made by the respondent/countercomplainant.
Due process procedure: The hearing will proceed as follows:
(1) Chairperson cites authority to hear case and explains reason
for hearing.
(2) The complaint and counter-complaint will be read into
the record.
(a) The respondent/counter-complainant may question the
complainant/counter-respondent and/or his witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
(3) The testimony of all parties and witness(es) will be sworn or
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except while testifying.
(b) The Hearing Panel may question the complainant/
counter-respondent and/or his witness(es) immediately
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(4) Complainant/counter-respondent will present a brief opening
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of the Code of Ethics that he feels have been violated,
explaining how the respondent/counter-complainant violated
each Article and refuting the contention that he violated any
provisions of the Code of Ethics.
(9) The respondent/counter-complainant may present
additional testimony and evidence from herself and/or her
witness(es) to further support the allegations of violations of
the Code of Ethics by the complainant counter-respondent
and/or refute the allegations made by the complainant/
counter-respondent.
(5) Respondent /counter-complainant will present a
brief opening statement uninterrupted, identifying
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feels have been violated, explaining how the complainant/
counter-respondent violated each Article and refuting the
contention that she violated any provision of the Code of
Ethics.
(a) The complainant/counter-respondent may question the
respondent/counter-complainant and/or her witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
(b) The Hearing Panel may question the respondent/
counter-complainant and/or her witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
(6) Complainant/counter-respondent presents his/her case
and defenses by offering testimony and evidence from
himself and/or his witness(es) to support the allegations
of violations of the Code of Ethics by the respondent
Code of Ethics and Arbitration Manual
&
URVVH[DPLQDWLRQLQZKLFKWKHSDUWLHVDUHJLYHQDÀQDO
opportunity to examine each other. The complainant/
78
Ethics
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of the respondent/counter-complainant and/or the respondent/
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counter-complainant may then ask any remaining questions
of the complainant/counter-respondents and/or of the
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(11) The Hearing Panel may question either the complainant/
counter-respondent and/or the respondent/countercomplainant and/or their respective witness(es).
(12) When the parties and Hearing Panel members have no
further questions, the complainant/counter-respondent and
respondent/counter-complainant (respectively) may present
uninterrupted closing statements.
(13) The Chair will then adjourn the hearing.
(14) The Hearing Panel will go into executive session to decide
the case.
Findings in ethics hearing:7KHÀQGLQJVDQGUHFRPPHQGDWLRQ
for discipline, if any, shall be reduced to writing by the Hearing
Panel and submitted to the Board of Directors in accordance with
the procedure of Part Four, Section 23 of the Code of Ethics and
Arbitration Manual.
Testimony: Any testimony relating to the character or general
reputation of either party shall not be permitted unless the
+HDULQJ3DQHOÀQGVWKDWVXFKWHVWLPRQ\KDVDGLUHFWEHDULQJRQ
the case. The Chairperson may exclude any question which he or
she deems irrelevant or argumentative.
Use of counsel: A party may be represented in any hearing
by legal counsel or by a REALTOR® of their choosing (or both).
However, parties may not refuse to directly respond to requests
for information or questions addressed to them by members
of the panel except on grounds of self-incrimination, or on
other grounds deemed by the panel to be appropriate. In this
connection, the panel need not accept the statements of counsel as
EHLQJWKHVWDWHPHQWVRIFRXQVHO·VFOLHQWLIWKHSDQHOGHVLUHVGLUHFW
testimony. Parties shall be held responsible for the conduct of
their counsel. Any effort by counsel to harass, intimidate, coerce,
or confuse the panel members or any party to the proceedings, or
any action by counsel which is viewed by the panel as disruptive
of the proceedings, shall be grounds for exclusion of counsel.
The decision to exclude counsel for any of the foregoing reasons
shall be the result of a majority vote of the members of the panel
and shall be nonappealable. In the event counsel is excluded, the
KHDULQJVKDOOEHSRVWSRQHGWRDGDWHFHUWDLQQRWOHVVWKDQÀIWHHQ
(15) nor more than thirty (30) days from the date of adjournment
to enable the party to obtain
alternate counsel, provided, however, that such postponement
shall not be authorized if it appears to members of the panel that
the action of counsel has been undertaken by counsel to obtain a
postponement or delay of the hearing.
%HDGYLVHGDOOPDWWHUVGLVFXVVHGDUHVWULFWO\FRQÀGHQWLDO
(Adopted 11/98, Amended 11/12)
79
Code of Ethics and Arbitration Manual
Ethics
Chairperson’s Procedural Guide:
Conduct of an Ethics Hearing
_____________________, ________________________,
_____________________, and _____________________.
_________________________________ Board of REALTORS®
(If the complainant is represented by counsel, and/or
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If none, have the respondent sign a statement to that
effect.)
State of ___________________________________________
(Ask the recording Secretary to make sure that the names of all
parties present for the hearing have been added to this Guide and
that all the appropriate blanks have been completed.)
(4) Also present at this hearing is ____________________, the
respondent, and his/her sales associate(s), _____________.
(Ask all parties [including witnesses] to come into the hearing
room.)
(If the respondent is accompanied by counsel and/or witnesses,
they should be introduced at this time.)
Display: %RDUGEDQQHUDQGWKH$PHULFDQÁDJ
_____________________, ________________________,
_____________________, and _____________________.
Seating arrangements: See Part Six, Form #E-16 of this Manual
for recommended seating arrangements.
(If the respondent is represented by counsel, and/or
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ZDVQRWLÀHGLQDGYDQFH,IQRWDVNLIWKHUHLVDQREMHFWLRQ,I
none, have complainant sign a statement to that effect.)
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement and conduct of hearing:
Ladies and gentlemen, I now call this hearing to order. The
Professional Standards Committee is charged with holding
appropriate hearings for the ____________________________
Board of REALTORS® in accordance with the procedures as set
IRUWKLQWKH%RDUG·VE\ODZVLQPDWWHUVFRQFHUQLQJDOOHJHGXQHWKLFDO
conduct of a Board Member or Members, or in the arbitration
of a business dispute arising out of the real estate business as
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impartial panel of the Professional Standards Committee that has
been selected and called here today to ascertain the truth in the
particular matter at hand, which is an ethics proceeding, and to
render a decision on the testimony and evidence presented. It is to
be noted that an ethics proceeding is to be clearly distinguished
from an arbitration proceeding and should be treated as a
completely separate matter. The particular matter to be considered
by this panel at this time is an ethics proceeding.
(5) Also present at this hearing is ______________________, the
recording secretary for the ______________________ Board
of REALTORS®, and (if appropriate) _____________, the court
reporter present to transcribe these proceedings.
(Or, alternatively: This hearing is being mechanically
recorded.)
(If an attorney representing the Board is present, he/she should
be introduced at this time.)
______________________________________________.
The parties are specifically advised that any recording or
transcription that may be made of these proceedings can only
be used for purposes of appeal or rehearing, and any other use,
including use in other ethics or arbitration hearings, is expressly
prohibited.
The Professional Standards Committee is a body duly constituted
under the authority of the bylaws of the ___________________
Board of REALTORS® and has been duly appointed by the Board
President and approved by the Board of Directors. At this time, I
would like to introduce members of this panel.
Basis of hearing: This hearing has been established to
consider the complaint of _______________________ against
_________________________, alleging violation of Article(s)
____________________________ of the Code of Ethics of the
NATIONAL ASSOCIATION OF REALTORS®.
(1) My name is _____________________________________,
and I will serve as Chairperson of this panel.
(2) The other members of this panel are:
_____________________, ________________________,
_____________________, and _____________________.
7KHFRPSODLQWDVÀOHGE\WKHFRPSODLQDQWLVDVIROORZV
(Read the Article[s] the respondent has been charged with
violating into the record.)
(3) Present at this hearing is _______________________, the
complainant, and his/her sales associate(s) ____________.
This panel is not dealing with questions of law, and it is not
governed by the technical rules of evidence which may apply in
courts. This panel will seek to determine all ascertainable and
relevant facts pertaining to the matter under consideration to arrive
(If the complainant is accompanied by an attorney and/or
witnesses, they should be introduced at this time.)
Code of Ethics and Arbitration Manual
80
Ethics
at a peer judgment and decision by the panel t hat is fair to all of
the parties. The panel is governed and directed by the bylaws of
the ____________ Board of REALTORS® and the Code of Ethics of
the NATIONAL ASSOCIATION OF REALTORS®. The panel determines
its own rules of evidence and its own procedures to be followed
with objectives of equity and due process. The following has been
generally accepted and ruled on by this panel as to the procedures
to be followed during this hearing.
are the truth, the whole truth, and nothing but the truth so help
you God?” Let the record show that all parties have answered in
WKHDIÀUPDWLYH
(And/or if needed)
Affirmation: Raise your right hand and, following the
question I will pose, answer in the affirmative if you do
VRDIÀUP´'R\RXDIÀUPWKDWWKHWHVWLPRQ\\RXDUHDERXW
to give in this proceeding shall be the truth, the whole truth,
and nothing but the truth?” Let the record show that
_____________________________ has/have answered in the
DIÀUPDWLYH
(1) All parties or their representatives to these proceedings will be
allowed a full opportunity to be heard on matters relevant to
the issue. The panel may rule at any time during this hearing
on the relevance of testimony being given or questions being
directed to any party or his/her representative or to witnesses
providing testimony. All parties and witnesses will be asked
WRVZHDURUDIÀUPWKDWWHVWLPRQ\JLYHQLVWKHWUXWKWRWKHEHVW
of their knowledge.
(At this time, the Chairperson should excuse any witnesses and
ask them to wait outside until called, and ask the remaining
parties to be seated.)
(If no counsel is present, proceed to 3.)
Outline of procedure for hearing: Both the complainant and
the respondent were mailed a copy of the Outline of Procedure
for an Ethics Hearing (Part Six, Form #E-9 of this Manual). Did
each of you receive the Outline?
(2) A party may be represented by legal counsel or by a REALTOR®
of their choosing (or both). However, no party may refuse
to directly respond to requests for information or questions
addressed to him/her by members of the panel except on
grounds of self-incrimination or other grounds which the
panel deems appropriate. In this connection, the panel need
not accept the statements of counsel as being the statements of
his/her client if the panel desires direct testimony. Counsel is
present to advise and consult with his/her client, and to speak
for him/her subject to appropriate rulings or determinations
by the panel. This panel will countenance no effort by any
party or by counsel to any party to harass, intimidate, coerce,
or confuse the panel members or any party to the proceedings.
(If yes) Let the record show that both the complainant and
respondent have stated they did receive the Outline.
(If no, the party should be given a copy of the Outline and the
Chairperson should determine whether that party has any
REMHFWLRQVWRSURFHHGLQJ
Do you have any questions concerning that Outline of Procedure?
(If none) Let the record show that neither the complainant nor
the respondent have any questions concerning the Outline of
Procedure for an Ethics Hearing.
(3) The panel may rule at any time on the admissibility of evidence.
As Chairperson, I will act as keeper of the evidence introduced
DWWKLVKHDULQJDQGPDUNHDFKZLWKDQH[KLELWLGHQWLÀFDWLRQ
number or letter and date.
We shall now proceed with the hearing.
Opening statement by parties or counsel: Each party or the
SDUW\·VFRXQVHOVKDOOEHJLYHQDQRSSRUWXQLW\IRUDQRSHQLQJ
VWDWHPHQWZKLFKVKDOOEULHÁ\RXWOLQHWKHEDVLFSUHPLVHRIWKH
SDUW\·VSRVLWLRQ<RXZLOOKDYHDQRSSRUWXQLW\WRSUHVHQW\RXU
entire case at a later time during this hearing.
(4) The members of this panel are authorized, individually, to
DVNTXHVWLRQVDVWKH\GHHPSHUWLQHQWDQGVLJQLÀFDQWDWDQ\
time during this hearing. To preserve order, I will rule on
questions or testimony by the parties or their representatives,
or by witnesses in these proceedings. If deemed necessary, I
will consult with the members of the panel and with Board
counsel concerning such rulings.
Presentation by complainant: The complainant will now state
his/her case and present any evidence or witnesses that he/she
may desire.
(5) At this time, I request that all persons present in the room who
expect to testify at this hearing stand and be sworn or make
DSSURSULDWHDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Cross-examination by respondent
Questions from panel members
(The Chairperson should determine if any of the parties prefer
DIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Presentation by respondent: The respondent will now state
his/her case and present any evidence or witnesses that he/she
may desire.
Swearing: Raise your right hand and, following the question I
ZLOOSRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRVZHDU´'R\RX
swear that the statements you are about to make at this hearing
Cross-examination by complainant
81
Code of Ethics and Arbitration Manual
Ethics
Questions from panel members
Closing statement by complainant: At this time, both the
complainant and the respondent will be given an opportunity
to make a summary or closing statement if they so desire. The
FRPSODLQDQW·VFORVLQJVWDWHPHQWZLOOEHKHDUGÀUVW
Closing statement by respondent
Closing statement by Panel Chairperson: Do each of you feel
that this hearing has been conducted fairly?
(If yes) Let the record show that both the complainant and the
respondent have indicated that they feel this hearing has been
conducted fairly.
Have each of you had an adequate opportunity to testify, present
evidence and witnesses, and conduct cross-examination?
(If yes) Let the record show that both the complainant and
the respondent have indicated that they have had an adequate
opportunity to testify, present evidence and witnesses, and conduct
cross-examination.
(If any party answers “no,” ask him/her to state any concern
and, if there’s any merit to the concern, take steps to remedy any
SRVVLEOHGHÀFLHQF\
Confidential nature of hearing: Before we adjourn the
hearing of this panel, all persons present are advised that the
UHSRUWDQGÀQGLQJVRIWKLVSDQHODUHFRQVLGHUHGFRQÀGHQWLDO,W
will be available only to members of this panel, to the parties,
to counsel and staff as required, and to the Board of Directors
of the ____________________________ Board of REALTORS®
as directed by provisions of Part Four, Sections 22 and 23 of
WKLV0DQXDORUDVRWKHUZLVHVSHFLÀHGLQWKH0DQXDO8SRQÀQDO
DFWLRQE\WKH'LUHFWRUVWKHÀQGLQJVRUFRQFOXVLRQVRIWKLVSDQHO
shall be disseminated to the parties by the President of the Board,
as directed by Part Four, Section 23 of this Manual. The parties
ZLOOEHQRWLÀHGRIWKHGHFLVLRQZLWKLQWKHUHTXLUHGWLPHDIWHUWKLV
KHDULQJLVDGMRXUQHG<RXDUHDOVRUHPLQGHGWKDWDQ\UHFRUGLQJRU
transcription of these proceedings can only be used for purposes of
appeal or rehearing and that all other uses, including use in other
ethics or arbitration hearings, is expressly prohibited.
Adjournment: There being no further business to be considered
in this hearing, this portion of the hearing stands adjourned.
Proceeding following hearing — executive session: (After
DGMRXUQPHQWWKHSDQHOZLOOUHPDLQLQH[HFXWLYHVHVVLRQDQG
IUDPHDUHSRUWRIÀQGLQJDQGRSLQLRQWRVHWIRUWKWKHGHFLVLRQ7KH
panel will follow explicitly the procedure set forth in the Code of
Ethics and Arbitration Manual as to opportunity for rehearing or
for an appeal if provided. Boards should consider having Board
counsel review ethics decisions prior to any action of the panel
EHFRPLQJÀQDORUHIIHFWLYH7KLVZLOOVHUYHWRSURWHFWWKH%RDUG
by minimizing vulnerability to litigation.)
(Revised 11/12)
Code of Ethics and Arbitration Manual
82
Ethics
Chairperson’s Procedural Guide:
Conduct of an Appeal Hearing (Ethics)
Prior to the original ethics hearing, the complaint was reviewed
E\WKH%RDUG·V*ULHYDQFH&RPPLWWHHRUDSDQHORIWKH%RDUG·V
*ULHYDQFH&RPPLWWHHPHPEHUVDQGUHIHUUHGWRWKH%RDUG·V
Professional Standards Committee for a hearing.
_________________________________ Board of REALTORS®
Authority: The Appeal Hearing Tribunal present here today is
a body duly constituted under the authority of the bylaws of the
___________________________ Board of REALTORS®.
State of ___________________________________________
(Ask the Secretary to make sure that the names of all parties
present for the hearing have been added to this Guide and that
all the appropriate blanks have been completed. Also note that
ethics appeals are not to be recorded.)
Introduction of the Appeal Hearing Tribunal: At this time,
I would like to introduce the members of this Appeal Hearing
Tribunal. My name is ___________________________, and I
will serve as Chairperson. The other members of this Appeal
Hearing Tribunal are _____________________________,
_________________________, ________________________,
_________________________, ________________________,
_________________________, ________________________,
and _______________________.
(Ask all parties to come into the hearing room.)
Display: %RDUGEDQQHUDQGWKH$PHULFDQÁDJ
Seating arrangements: See Part Six, Form #E-16 of this Manual
for recommended seating arrangements.
'LVTXDOLÀFDWLRQ Anyone who was a party to the original ethics
hearing, a member of the Grievance Committee present during
the meeting when the complaint was reviewed, a member of the
original ethics Hearing Panel, or who was otherwise involved in
WKLVPDWWHUSULRUWRWKHDSSHDOLVGLVTXDOLÀHGIURPVHUYLQJRQWKLV
Appeal Hearing Tribunal. Furthermore, anyone who is related by
blood or marriage to any party to the hearing or anyone related by
blood or marriage to a REALTOR® acting as counsel for either the
complainant or respondent, or anyone who is an employer, partner,
employee, or is associated in business with any of the parties or
a REALTOR®DFWLQJDVFRXQVHOLVDOVRGLVTXDOLÀHG,ZLOOQRZDVN
the members of the Appeal Hearing Tribunal if they know of any
UHDVRQZK\WKH\VKRXOGEHGLVTXDOLÀHG
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement: Ladies and gentlemen, I
now call this appeal hearing to order. The professional standards
procedures of the ___________ Board of R EALTORS® provide for
the right to appeal the decisions rendered by ethics Hearing Panels.
The complainant in the original ethics hearing may appeal based
RQO\RQDOOHJHGSURFHGXUDOGHÀFLHQFLHVWKDWPD\KDYHGHSULYHGWKH
complainant of the opportunity for a full and fair hearing or other
lack of procedural due process. The respondent in the original
ethics hearing may appeal the decision and/or recommendation for
discipline on the basis of (1) misapplication or misinterpretation of
an Article(s) of the Code of Ethics of the NATIONAL ASSOCIATION
OF R EALTORS®DOOHJHGSURFHGXUDOGHÀFLHQF\RUDQ\ODFNRI
procedural due process, or (3) the discipline recommended by the
Hearing Panel. This particular appeal will be heard by (the Board
of Directors) (or) (a panel of Directors appointed by the President)
RUWKH%RDUG·V([HFXWLYH&RPPLWWHHKHUHLQDIWHUUHIHUUHGWRDV
the Appeal Hearing Tribunal.
(If none) The members of the Appeal Hearing Tribunal have
QRWLQGLFDWHGDQ\UHDVRQZK\WKH\DUHQRWTXDOLÀHGWRVHUYH
$OWKRXJKWKHSDUWLHVKDYHEHHQSUHYLRXVO\QRWLÀHGRIWKHLUULJKW
to challenge members of this Appeal Hearing Tribunal, I will now
ask the parties if they are aware of any reason why any member
RIWKLV$SSHDO+HDULQJ7ULEXQDOLVQRWTXDOLÀHGWRVHUYH
Basis of this hearing: The particular matter to be considered by
this Appeal Hearing Tribunal is an appeal of the decision of the
ethics Hearing Panel composed of:
_________________________, ________________________,
_________________________, ________________________,
and chaired by ____________________________, at an ethics
hearing conducted on _____________________, 20_____. The
basis of the original ethics hearing was a complaint brought by
_________________________, ________________________,
and ________________________, the complainant(s), against
_________________________, ________________________,
and _________________________, the respondent(s), alleging
violation of Article(s) __________ of the Code of Ethics of the
NATIONAL ASSOCIATION OF REALTORS®. The decision was as follows.
(If none) The parties have not indicated any reason why any
PHPEHURIWKLV$SSHDO+HDULQJ7ULEXQDOLVQRWTXDOLÀHGWRVHUYH
Additional introductions: Also present at this appeal hearing
is ________________________, ______________________, and
_______________________, the complainant(s) in the original
ethics hearing; _________________, ___________________,
and _________________________, the respondent(s) in the
original ethics hearing; _____________________, the original
ethics Hearing Panel Chairperson; and __________________,
the Secretary for the _________________ Board of REALTORS®.
(If any attorneys are present, they should be introduced at
this time.)
(Read the decision of the ethics Hearing Panel of the Professional
Standards Committee [Part Six, Form #E-11 of this Manual].)
83
Code of Ethics and Arbitration Manual
Ethics
__________________________, _________________________,
_______________________, and ________________________.
Swearing: At this time I will request that all persons present in
the room who expect to testify at this appeal hearing stand and
EHVZRUQRUPDNHDSSURSULDWHDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
(The Chairperson should determine if any of the parties prefer
DIÀUPDWLRQLQOLHXRIEHLQJVZRUQ3OHDVHVWDQGUDLVH\RXUULJKW
KDQGDQGIROORZLQJWKHTXHVWLRQ,SRVHDQVZHULQWKHDIÀUPDWLYH
LI\RXGRVRVZHDU´'R\RXVZHDUWKDWWKHVWDWHPHQWV\RXDUHDERXW
to make at this hearing are the truth, the whole truth, and nothing
but the truth so help you God?”
Appeal limitations: In this appeal hearing we will consider the
arguments of ____________________, hereinafter referred to
DVWKHDSSHOODQWZKRÀOHGWKH5HTXHVWIRU$SSHDO7KHDSSHDO
is further limited to the basis (bases) set forth in writing in the
Request for Appeal, which is as follows.
(Read the Request for Appeal, [Part Six, Form #E-13 of this
Manual].)
(If yes)$OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVH
be seated.
Outline of procedure: At this time I would like to explain the
procedure for this appeal hearing. First, the original ethics Hearing
Panel Chairperson (or a representative from the original panel)
will summarize the case (or provide copies of transcripts). Then,
the appellant will have an opportunity to offer any corrections
RUPRGLÀFDWLRQVWRWKHVXPPDU\RUWUDQVFULSWVWRLQWURGXFH
supporting evidence and/or the statements of any other parties to
the original ethics hearing, and to explain the basis (bases) for the
appeal. Next, the original Hearing Panel Chairperson and/or other
parties to the original ethics hearing will have an opportunity to
H[SODLQZK\WKHRULJLQDOHWKLFV+HDULQJ3DQHO·VGHFLVLRQVKRXOGEH
upheld. At any time during this proceeding, members of the Appeal
Hearing Tribunal may ask questions; however, parties have no right
of cross-examination. Finally, following the appeal hearing, the
Appeal Hearing Tribunal will go into executive session to render
a decision. Do any of the parties have any questions regarding the
outline of procedure?
(And/or if needed)
$IÀUPDWLRQ Please stand, raise your right hand and, following
WKHTXHVWLRQ,SRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRDIÀUP
´'R\RXDIÀUPWKDWWKHVWDWHPHQWV\RXDUHDERXWWRPDNHDWWKLV
hearing are the truth, the whole truth, and nothing but the truth?”
(If yes)$OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVHEH
seated.
The appeal hearing: We shall now proceed with the appeal
hearing.
Presentation by the original ethics Hearing Panel
Chairperson: At this time the original ethics Hearing Panel
Chairperson will summarize the case (or provide copies of
transcripts).
(If none) None of the parties has any questions regarding the
outline of procedure.
Presentation by the appellant: At this time, the appellant
PD\RIIHUDQ\FRUUHFWLRQVRUPRGLÀFDWLRQVWRWKHRULJLQDOHWKLFV
+HDULQJ3DQHO&KDLUSHUVRQ·VVXPPDU\RUWKHWUDQVFULSW
introduce supporting evidence and/or the statements of any other
parties to the original ethics hearing, and explain the basis (bases)
for the appeal.
Guidelines: This Appeal Hearing Tribunal is not dealing with
questions of law and is not governed by the technical rules of
evidence which may apply in courts. This Appeal Hearing
Tribunal will seek to determine all ascertainable and relevant
facts pertaining to the matter under consideration to arrive at a
peer judgment and decision by the Appeal Hearing Tribunal that
is fair to all of the parties. After the Appeal Hearing Tribunal has
heard all of the evidence and testimony, we will go into executive
session to render our decision. The decision will be based solely
upon the arguments, evidence, and testimony offered during
this appeal hearing. All parties or their representatives to these
proceedings will be allowed a full opportunity to be heard on
matters relevant to the issue. This Appeal Hearing Tribunal may
rule at any time during this Appeal Hearing on the relevance
of testimony being given. All parties giving testimony will be
DVNHGWRVZHDURUDIÀUPWKDWWHVWLPRQ\JLYHQLVWKHWUXWKWRWKH
best of their knowledge. A party may be represented by counsel.
This Appeal Hearing Tribunal need not accept the statements of
counsel as being the statements of their clients if it desires direct
testimony. Counsel is present to advise and consult with their
clients, and to speak for them subject to appropriate rulings or
determinations by this Appeal Hearing Tribunal. This Appeal
Hearing Tribunal will countenance no effort by any party or by
counsel to any party to harass, intimidate, coerce, or confuse the
Appeal Hearing Tribunal or any party to the proceedings.
Code of Ethics and Arbitration Manual
Rebuttal by the original ethics Hearing Panel Chairperson: At
this time the original ethics Hearing Panel Chairperson will have
DQRSSRUWXQLW\WRH[SODLQZK\WKHRULJLQDOHWKLFV+HDULQJ3DQHO·V
decision should be upheld by this Appeal Hearing Tribunal.
Testimony of other parties to the original ethics hearing: At
this time, any other parties to the original ethics hearing will
have an opportunity to explain why the decision of the ethics
Hearing Panel should be upheld by the Appeal Hearing Tribunal.
Any party testifying must restrict his/her discussion to the issues
raised in the appeal.
Questions from panel members: The members of this panel are
authorized to ask questions at any time during this appeal.
&RQÀUPDWLRQRIIDLUQHVVRSSRUWXQLW\WRWHVWLI\ Do each
of you feel that this appeal hearing has been conducted fairly?
(If yes) All parties to this appeal hearing have indicated that they
feel this appeal hearing has been conducted fairly.
84
Ethics
Have each of you had an adequate opportunity to state why you
believe that the decision of the original ethics Hearing Panel
should or should not be upheld by this Appeal Hearing Tribunal?
Declaratory relief: (If the Appeal Hearing Tribunal has reason
to believe the decision will not be accepted and litigation may
ensue, it should consider making disciplinary action effective
only after a favorable decision in a suit for declaratory relief
ÀOHGE\WKH%RDUGFRQÀUPLQJWKHSURSULHW\RILWVDFWLRQ7KLV
will minimize any legal vulnerability to the Board.)
(If yes) The parties have indicated that they have had an adequate
opportunity to state why they believe the decision of the original
ethics Hearing Panel should or should not be upheld by this
Appeal Hearing Tribunal.
Closing statements: The decision of this Appeal Hearing
7ULEXQDOLVÀQDO%HIRUHZHDGMRXUQWKLVDSSHDOKHDULQJDOO
SHUVRQVSUHVHQWDUHDGYLVHGWKDWWKHUHSRUWDQGÀQGLQJVRIWKLV
$SSHDO+HDULQJ7ULEXQDODUHFRQVLGHUHGFRQÀGHQWLDO8SRQÀQDO
action by this Appeal Hearing Tribunal, the Board President
shall disseminate to the complainant and the respondent in the
original ethics hearing, the Board of Directors, the Chairperson
and members of the original ethics Hearing Panel, Board legal
counsel, the President of any other Board of R EALTORS® in
which the respondent holds membership, and any governmental
agency, as directed by the Board of Directors, such notice of
the action as the Board President deems appropriate under the
circumstances to effectuate the discipline prescribed, provided,
however, that the nature, form, content, and extent of the notice
VKDOOEHVSHFLÀFDOO\DSSURYHGE\%RDUGOHJDOFRXQVHOSULRUWR
dissemination.
Adjournment: There being no further business to be considered
in this appeal hearing, this portion of the appeal hearing stands
adjourned.
Executive session: The Appeal Hearing Tribunal will now go
into executive session.
Procedural note: (The Appeal Hearing Tribunal goes into
executive session to deliberate the issues raised on appeal.
The Appeal Hearing Tribunal may adopt or modif y the
recommendation of the original Hearing Panel, including
the discipline imposed; or, alternatively, the Appeal Hearing
Tribunal may dismiss the complaint if it concludes that the
ÀQGLQJVRIIDFWGRQRWVXSSRUWWKHRULJLQDO+HDULQJ3DQHO·V
conclusion as to unethical conduct. If the Appeal Hearing
7ULEXQDOLVFRQFHUQHGZLWKDSRVVLEOHSURFHGXUDOGHÀFLHQF\
it may refer the case back to the Professional Standards
Committee for a new hearing before a different ethics Hearing
Panel. If the Appeal Hearing Tribunal is concerned with the
appropriateness of the recommendation for discipline, it
may impose an alternative discipline that does not exceed
that discipline recommended by the original ethics Hearing
Panel or, alternatively, the Appeal Hearing Tribunal may
refer the decision back to the original ethics Hearing Panel
for further consideration. If the matter is referred back to
the original ethics Hearing Panel for further consideration,
it should be accompanied by the Appeal Hearing Tribunal’s
concerns regarding the proposed discipline. However, while the
Appeal Hearing Tribunal may recommend that the discipline be
increased, the original ethics Hearing Panel is not required to
increase the discipline beyond that originally recommended.)
(Revised 11/11)
85
Code of Ethics and Arbitration Manual
Part Six—Specimen Forms
The Manual refers to certain forms used in connection with ethics
proceedings conducted under it. Following are specimens of such
forms.
GDWHIRUKHDULQJZLOOEHVHWDQGDOOSDUWLHVZLOOEHQRWLÀHGRI
the date and place of hearing at least twenty-one (21) days
in advance.
7KH\VKRXOGQRWEHXVHGXQWLOWKH\DUHÀUVWUHYLHZHGE\%RDUG
counsel to assure that they conform to state law and to any
special requirements established by the Board. (NOTE: The
State Association may wish to have State Association legal counsel
review the contents of the Manual, including the Specimen Forms,
to adapt it to comply with state law, and to recommend adoption
of the amended Manual by all local Boards within the state.) The
Specimen Forms are intended to provide a format and may require
IXUWKHUDGDSWDWLRQDQGPRGLÀFDWLRQE\WKHORFDO%RDUGSULRUWR
implementation and use. For example, Form #E-11, Decision of the
Ethics Hearing Panel of the Professional Standards Committee,
should include adequate space for a comprehensive statement of
WKH´)LQGLQJVRI)DFWµDQGWKH´'HFLVLRQDQG5HFRPPHQGDWLRQ
for Disciplinary Action.”
, IQRUHSO\LVUHFHLYHGIURPUHVSRQGHQWZLWKLQÀIWHHQ
days from service of copy of the Ethics Complaint, date, time,
and place of hearing will be set.
(5) All parties may be represented by counsel, provided that
notice of intention to be represented is transmitted to all
RWKHUSDUWLHVDQGWRWKH+HDULQJ3DQHODWOHDVWÀIWHHQ
days prior to the hearing. Failure to provide timely notice
may result in a continuance of the hearing.
(6) It is the responsibility of each party to arrange for his
witnesses to be present at the hearing.
(
LWKHUSDUW\PD\ÀOHZLWKWKH6HFUHWDU\ZLWKLQWHQGD\V
from the date the names of the members of the Professional
Standards Committee are mailed to the parties, a written
UHTXHVWIRUGLVTXDOLÀFDWLRQRIDQ\SRWHQWLDOPHPEHURIWKH
Hearing Panel for any of the following reasons:
$IWHUVXFKUHYLHZDQGPRGLÀFDWLRQDVQHFHVVDU\WKHORFDO
Board or State Association may add to the forms the appropriate
LGHQWLÀFDWLRQGDWDRIWKH%RDUGDQGUHSURGXFHWKHPLQTXDQWLWLHV
desired by the Board.
(a) is related by blood or marriage to the complainant,
respondent, or a REALTOR® acting as counsel for either
the complainant or respondent
General Instructions and Information for
Filing and Replying to Ethics Complaints
(1) Complaints must be typewritten and submitted with a
VXIÀFLHQWQXPEHURIFRSLHVWRHQDEOHWKH%RDUGWRSURYLGH
RQHWRHDFKUHVSRQGHQWSOXVRQHFRS\IRUWKH%RDUG·VUHFRUGV
$Q\UHSO\PXVWEHW\SHZULWWHQDQGVXEPLWWHGZLWKDVXIÀFLHQW
number of copies to enable the Board to provide one to each
FRPSODLQDQWSOXVRQHFRS\IRUWKH%RDUG·VUHFRUGV$GGLWLRQDO
copies of the complaint and reply should be furnished by the
complainant and respondent as requested by the Secretary.
If the complainant is a member of the public, extra copies of
the complaint should not be requested.
(b) is an employer, partner, or employee, or in any way
associated in business with the complainant, respondent,
or a REALTOR® acting as counsel for either the complainant
or respondent
(c) is a party to the hearing, or a party or a witness in another
pending case involving complainant or respondent
(d) knows any reasons acceptable to the Hearing Panel
or tribunal which may prevent him from rendering an
impartial decision
(2) Complaints will be referred to the Board Secretary (or
([HFXWLYH2IÀFHUDQGE\WKH6HFUHWDU\WRWKH&KDLUSHUVRQ
of the Grievance Committee. If the Grievance Committee
ÀQGVWKHPDWWHUWRFRQVWLWXWHDSURSHUFDXVHRIDFWLRQLWZLOO
be referred to the Board Secretary to arrange a hearing;
if not found to constitute a proper cause of action, it will
be returned to the complainant with the decision of the
Grievance Committee, together with information advising
the complainant of the procedures by which the Grievance
&RPPLWWHH·VGHFLVLRQPD\EHDSSHDOHGWRWKH%RDUGRI
Directors.
(8) The notice of hearing will contain names of members of the
tribunal who will hear the case and should be accompanied
E\DQ´2XWOLQHRI3URFHGXUHIRU(WKLFV+HDULQJµ
(9) The parties shall not discuss the case with any member of
the Hearing Panel or the Board of Directors at any time prior
to announcement of a decision in the case.
(10) No hearing will be held in the absence of a complainant. An
ethics hearing may proceed in the absence of a respondent.
,IWKHUHLVWREHDKHDULQJUHVSRQGHQWZLOOKDYHÀIWHHQ
days after service of copy of the complaint to reply. Copy of
the reply will be sent to complainant, the Board President,
and the Professional Standards Committee Chairperson. The
(Revised 4/96)
87
Code of Ethics and Arbitration Manual
Form #E-1
__________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Ethics Complaint
To the Grievance Committee of the
___________________________________________________________________________
Board or State Association
Filed _______________________________, 20___________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
Complainant(s)
Respondent(s)
Complainant(s) charge(s):
An alleged violation of Article(s) ___________________________________ of the Code of Ethics or other membership duty as set
forth in the bylaws of the Board in ________________________________________________ and alleges that the above charge(s)
Article, Section
(is/are) supported by the attached statement, which is signed and dated by the complainant(s).
7KLVFRPSODLQWLVWUXHDQGFRUUHFWWRWKHEHVWNQRZOHGJHDQGEHOLHIRIWKHXQGHUVLJQHGDQGLVÀOHGZLWKLQRQHKXQGUHGHLJKW\
days after the facts constituting the matter complained of could have been known in the exercise of reasonable diligence or within one
hundred eighty (180) days after the conclusion of the transaction, whichever is later.
I (we) declare that to the best of my (our) knowledge and belief, my (our) allegations in this complaint are true.
Are the circumstances giving rise to this ethics complaint involved in civil or criminal litigation or in any proceeding before the state
real estate licensing authority or any other state or federal regulatory or administrative agency?
S <HV S
No
<RXPD\ÀOHDQHWKLFVFRPSODLQWLQDQ\MXULVGLFWLRQZKHUHDREALTOR® is a member or MLS participant. Note that the REALTORS® Code
RI(WKLFV6WDQGDUGRI3UDFWLFHSURYLGHVLQUHOHYDQWSDUW´REALTORS® shall not be subject to disciplinary proceeding in more than
one Board of REALTORS® . . . with respect to alleged violations of the Code of Ethics relating to the same transaction or event.”
+DYH\RXÀOHGRUGR\RXLQWHQGWRÀOHDVLPLODURUUHODWHGFRPSODLQWZLWKDQRWKHU$VVRFLDWLRQVRIREALTORS®?
S <HV S
No
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I understand that should the Grievance Committee dismiss this ethics complaint in part or in total, that I have twenty (20) days from
my receipt of the dismissal notice to appeal the dismissal to the Board of Directors.
Complainant(s):
__________________________________________________
__________________________________________________
Type/Print Name
Signature
__________________________________________________
__________________________________________________
Type/Print Name
Signature
_________________________________________________________________________________________________________
Address
__________________________________________________
__________________________________________________
Phone
Email
(Revised 11/09)
Code of Ethics and Arbitration Manual
88
Form #E-2
__________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Notice to Respondent (Ethics)
In the case of
______________________________________________ vs. _____________________________________________
To ___________________________________________________________________________________________ (respondent).
$WWDFKHGKHUHWRLVDFRS\RIDFRPSODLQWZKLFKQDPHV\RXDVUHVSRQGHQWDVÀOHGZLWKWKLV%RDUGDQGUHIHUUHGWRD+HDULQJ3DQHO
for hearing as a matter of an alleged violation of Article(s) _______________ of the Code of Ethics or other membership duty as set
forth in the bylaws of the Board.
3OHDVHEHDGYLVHGWKDWXQGHUWKHE\ODZVRIWKH%RDUG\RXKDYHÀIWHHQGD\VIURPWKHGDWHRIWKLVPDLOLQJLQZKLFKWRPDLORUÀOH
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<RXUUHSO\PXVWEHW\SHZULWWHQZLWKRULJLQDODQG______FRSLHVIRUWKLVRIÀFHDQGPXVWEHVLJQHGDQGGDWHG
Respectfully submitted,
__________________________________________________
_________________________________________, Secretary
Type/Print
Signature
____________________________________________________________________________________________________________
Board or State Association
Dated: _______________________________, 20__________
(Revised 11/96)
89
Code of Ethics and Arbitration Manual
Form #E-3
__________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Reply (Ethics)
To the Professional Standards Committee of the
__________________________________________________________________________________________________________
Board or State Association
Filed _______________________________, 20___________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
Complainant(s)
Respondent(s)
in a matter of alleged violation of the Code of Ethics or other membership duty as set forth in the bylaws of this Board.
Respondent(s) replies and substantiates such reply by the following facts and/or attached statement:
This is true and correct to the best knowledge and belief of the undersigned. I (we) declare that to the best of my (our) knowledge and
belief, the statements contained in this Reply are true and correct.
I understand that, if found in violation of the Code of Ethics or other membership duty, a respondent will be assessed an
administrative processing fee of ___________*.
Respondent(s):
__________________________________________________
__________________________________________________
Type/Print Name
Signature
_________________________________________________________________________________________________________
Address
__________________________________________________
__________________________________________________
Phone
Email
__________________________________________________
__________________________________________________
Type/Print Name
Signature
_________________________________________________________________________________________________________
Address
__________________________________________________
__________________________________________________
Phone
Email
(Revised 11/09)
*Fee not to exceed $500 and may not be assessed unless the Board of Directors has established policy to assess this fee against respondents found
in violation of the Code of Ethics or other membership duty.
Code of Ethics and Arbitration Manual
90
Form #E-4
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Grievance Committee Request for Information (Ethics Complaint)
To ______________________________________________________________________________________________________,
named by ____________________________________________ as respondent.
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IRUUHYLHZLQDFFRUGDQFHZLWK6HFWLRQRIWKH%RDUG·VCode of Ethics and Arbitration Manual.
Please be advised that you have ________GD\VIURPUHFHLSWRIWKLVQRWLFHWRPDLORUÀOH\RXUUHSO\DWWKHDGGUHVVDERYH<RXUUHSO\
must be typewritten, with original and ______FRSLHVIRUWKLVRIÀFHDQGPXVWEHVLJQHGDQGGDWHG
)DLOXUHWRSURYLGHDUHVSRQVHPD\UHVXOWLQWKHFRPSODLQWEHLQJIRUZDUGHGIRUDKHDULQJDQGPD\DOVRUHVXOWLQWKH*ULHYDQFH&RPPLWWHH·V
ÀOLQJRIDFRPSODLQWDJDLQVW\RXDOOHJLQJDYLRODWLRQRI$UWLFOHRIWKH&RGHRI(WKLFVIRUIDLOXUHWRVXEPLWSHUWLQHQWIDFWVWRDSURSHU
Tribunal, pursuant to Section 20 of this Manual.
Respectfully submitted,
__________________________________________________
_________________________________________, Secretary
Type/Print
Signature
___________________________________________________________________________________________________________
Board or State Association
Dated: _______________________________, 20__________
91
Code of Ethics and Arbitration Manual
Form #E-5
__________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Response to Grievance Committee Request for Information
To the Grievance Committee of the
___________________________________________________________________________________________________________
Board or State Association
Filed _______________________________, 20___________
__________________________________________________
__________________________________________________
___________________________________________________
___________________________________________________
Complainant(s)
Respondent(s)
in a matter of alleged violation of the Code of Ethics or other membership duty as set forth in the bylaws of this Board.
Respondent(s) replies and substantiates such reply by the following attached statement:
This is true and correct to the best knowledge and belief of the undersigned. I (we) declare that to the best of my (our) knowledge and
belief, the statements contained in this Reply are true and correct.
I understand that, if found in violation of the Code of Ethics or other membership duty, a respondent will be assessed an
administrative processing fee of ___________*.
Respondent(s):
__________________________________________________
__________________________________________________
Type/Print Name
Signature
_________________________________________________________________________________________________________
Address
__________________________________________________
__________________________________________________
Phone
Email
__________________________________________________
__________________________________________________
Type/Print Name
Signature
_________________________________________________________________________________________________________
Address
__________________________________________________
__________________________________________________
Phone
Email
(Revised 11/09)
*Fee not to exceed $500 and may not be assessed unless the Board of Directors has established policy to assess this fee against respondents found
in violation of the Code of Ethics or other membership duty.
Code of Ethics and Arbitration Manual
92
Form #E-5.1
Grievance Committee Report Form
(Return to Association when completed)
Case #:___________________________ ____________________________________ __________________________________
Complainant(s)
Respondent(s)
On ______________________________ , the ____________________________________________________________________
Date
Name of Board
Grievance Committee met to review the above-referenced matter which is a(n) S Request for Arbitration
As a result of that meeting, the Grievance Committee recommends the following action.
S Ethics Complaint
Arbitration Request
S The arbitration request is a matter for mandatory arbitration and shall be forwarded to the Professional Standards Committee for
a hearing.
S The arbitration request is a matter for voluntary arbitration and shall be forwarded to the Professional Standards Committee for a
hearing, provided that all parties agree.
S The arbitration request is not a matter for arbitration and the Grievance Committee dismisses the request. The complainant has the
right to appeal the dismissal to the Board of Directors within 20 days from the date that staff mails the dismissal notice.
Reason for dismissal:
SQRWWLPHO\ÀOHG S not arbitrable S board does not have jurisdiction
S other (explain) ________________________________________________________________________________________
Ethics Complaint
S The complaint, if taken as true on its face, constitutes potentially unethical conduct and will be forwarded to the Professional
Standards Committee for a hearing. Articles originally charged:___________________________________________________.
S The complaint is amended by adding and/or deleting the following Articles and will be forwarded to the Professional Standards
Committee for a hearing:
________________________________________________
___________________________________________________
Articles Added
Articles Deleted
Rationale for Article(s) added: _____________________________________________________________________________
______________________________________________________________________________________________________
Reason for dismissing Articles:
SQRWWLPHO\ÀOHG S allegations do not demonstrate a possible violation of the Code
S other (explain)__________________________________________________________________________________________
Note which reason is applicable to which Article(s) dismissed. If the complainant does not agree with deleting an Article(s),
complainant may appeal the dismissal of the Article(s) to the Board of Directors within 20 days of receipt of the dismissal notice.
,IQRDSSHDOLVÀOHGWKHFRPSODLQWDVDPHQGHGVKDOOEHIRUZDUGHGWRWKH3URIHVVLRQDO6WDQGDUGV&RPPLWWHHIRUKHDULQJ,IDQDSSHDO
LVÀOHGWKHQQRKHDULQJZLOOEHKHOGXQWLOWKHDSSHDOLVKHDUG
Reason for dismissing complaint:
SQRWWLPHO\ÀOHG S allegations do not demonstrate a possible violation of the Code.
S association does not have jurisdiction over the respondent
S other (explain) ________________________________________________________________________________________
If the complainant does not agree with the dismissal of the complaint, the complainant may appeal the dismissal to the Board of
Directors within 20 days from receipt of dismissal notice.
__________________________________________________
___________________________________________________
Grievance Committee Chairperson
Date
(Revised 11/11)
93
Code of Ethics and Arbitration Manual
Form #E-6
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Notice of Right to Challenge Tribunal Members*
Notice is given herewith to parties in the matter of ______________________________ vs. ______________________________,
DQHWKLFVSURFHHGLQJWKDWDSDUW\KDVDULJKWWRFKDOOHQJHWKHTXDOLÀFDWLRQVRIDQ\LQGLYLGXDOZKRPD\EHDSSRLQWHGWRVHUYHRQD
+HDULQJ3DQHORUWKH%RDUGRI'LUHFWRUV$OLVWRIVXFKLQGLYLGXDOVLVSURYLGHGEHORZ,I\RXZLVKWRFKDOOHQJHWKHTXDOLÀFDWLRQVRIDQ\
of the individuals listed who may be appointed to sit on the Tribunal, please indicate by checking the appropriate blank, and return
this form or a copy of same with a letter (or enclosed Form #E-7, if preferred) to the (Professional Standards Committee Chairperson)
([HFXWLYH2IÀFHUH[SODLQLQJ\RXUUHDVRQ´FDXVHµIRUFKDOOHQJH,I\RXUUHDVRQLVGHHPHGVXIÀFLHQWWRVXSSRUW\RXUFKDOOHQJHWKH
LQGLYLGXDOFKDOOHQJHGZLOOQRWEHDSSRLQWHGWRWKH7ULEXQDO3XUVXDQWWR6HFWLRQ4XDOLÀFDWLRQIRU7ULEXQDOFKDOOHQJHVPXVWEHÀOHG
with the Board within ten (10) days from the date the list of names is mailed.
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BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
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BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB&KDOOHQJHBBBBBBB<HVBBBBBBB1R
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__________________________________________________
__________________________________________________
3DUW\·V1DPH7\SH3ULQW
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__________________________________________________
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__________________________________________________
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(Revised 11/97)
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for Tribunal, Code of Ethics and Arbitration Manual.
Code of Ethics and Arbitration Manual
94
Form #E-7
____________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
&KDOOHQJHWR4XDOLÀFDWLRQVE\3DUWLHVWR(WKLFV3URFHHGLQJ
I (we), as party to the matter in ______________________________________ vs. ______________________________________,
KHUHE\FKDOOHQJHWKHTXDOLÀFDWLRQRIWKHIROORZLQJQDPHGLQGLYLGXDOVZKRPD\EHDSSRLQWHGDVDPHPEHUVRIWKH7ULEXQDOIRUWKH
IROORZLQJUHDVRQV127( 8QVXEVWDQWLDWHGFKDOOHQJHVZLOOEHGLVUHJDUGHG
Panel Member Challenged: ________________________________________
Reason: __________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Panel Member Challenged: ________________________________________
Reason: __________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Panel Member Challenged: ________________________________________
Reason: __________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Type/Print Name of Party: _________________________________________
Signed: ________________________________________________________________________ Date: _____________________
Type/Print Name of Party:_________________________________________
Signed: ________________________________________________________________________ Date: _____________________
Type/Print Name of Party:_________________________________________
Signed: ________________________________________________________________________ Date: _____________________
*Members of ethics Hearing Panels or the Board of Directors.
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member(s) of a Tribunal in an ethics proceeding to which you are a party.
95
Code of Ethics and Arbitration Manual
Form #E-8
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
2IÀFLDO1RWLFHRI+HDULQJ(WKLFV
In the case of ________________________________________ vs. _________________________________________________,
Complainant
Respondent
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(1) The Chairperson of the Hearing Panel has designated the ____________________________________________, 20 __________
'D\0RQWK<HDU
___________ A.M. / P.M. at________________________________________________________________________________,
Time
Place of Hearing
as the time for hearing the above case, which is a hearing concerning alleged violation of Article(s) ____________________
_____________________________ of the Code of Ethics or other membership duty as set forth in the bylaws of the Board in
_____________________________________________________________________________________________________.
Article, Section
<RXDUHKHUHE\QRWLÀHGWRDSSHDUDWWKHWLPHDQGSODFHVRGHVLJQDWHG
(3) The members of the Hearing Panel appointed to hear the case are:
________________________________________________
__________________________________________________
_______________________________________________
__________________________________________________
________________________________________________
__________________________________________________
(4) Either party may be represented by counsel, and each party is requested to provide written notice of an intention to have counsel
SUHVHQWÀIWHHQGD\VEHIRUHWKHKHDULQJWRWKH%RDUGDQGWKHRWKHUSDUW\LQFOXGLQJFRXQVHO·VQDPHDGGUHVVDQGSKRQHQXPEHU
)DLOXUHWRSURYLGHWKLVQRWLFHZLOOQRWLQYDOLGDWHDSDUW\·VULJKWWRUHSUHVHQWDWLRQEXWPD\UHVXOWLQDFRQWLQXDQFHRIWKHKHDULQJLI
the Hearing Panel determines that the rights of any other party require representation by counsel.
(5) Each party must provide a list of the names of the witnesses he intends to call at the hearing to the Board and to all other parties not less
WKDQÀIWHHQGD\VSULRUWRWKHKHDULQJ(DFKSDUW\VKDOODUUDQJHIRUKLVZLWQHVVHVWREHSUHVHQWDWWKHWLPHDQGSODFHGHVLJQDWHGfor
the hearing. This includes REALTOR® principals consistent with Section 13(d), Code of Ethics and Arbitration Manual.
(6) The parties shall not discuss the case with any member of the Hearing Panel or the Board of Directors prior to the hearing or after
hearing and prior to announcement of the decision.
(7) The Board of Directors has adopted a policy to assess an administrative processing fee of ________* should a respondent be found
in violation of the Code of Ethics or other membership duty.
Respectfully submitted,
__________________________________________________
_________________________________________, Secretary
Type/Print
Signature
___________________________________________________________________________________________________________
Board or State Association
Dated: _______________________________, 20__________
(Revised 11/10)
*Board of Directors must adopt a policy to assess this fee uniformly and consistently, prior to it being assessed. Fee may not exceed $500.
Code of Ethics and Arbitration Manual
96
Form #E-9
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Outline of Procedure for Ethics Hearing
(To be Mailed in Advance to Both Parties)
Postponement of hearing: Postponement may be granted if there are extenuating circumstances. Requests for postponement must
be made in writing. Permission can be given by the Chairperson. All parties shall be advised of the date of the rescheduled hearing.
Recording the hearing: 7KH%RDUGVKDOODQGDQ\SDUW\PD\PD\QRWDWWKHSDUW\·VH[SHQVHKDYHDFRXUWUHSRUWHURUUHFRUGHUSUHVHQW
or may record the proceeding and, if transcribed, shall present a transcript to the Secretary. If the Board utilizes a court reporter in lieu
of recording, the parties may not be prohibited from making their own recording.
Method and objective of procedure: The Hearing Panel shall not be bound by the rules of evidence applicable in courts of law, but shall
afford all parties a full opportunity to be heard, present witnesses, and offer evidence, subject to its judgment as to relevance.
Due process procedure: The hearing procedures will be:
(1) Chairperson cites authority to hear case and explains reason for hearing.
(2) The complaint will be read into the record.
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testifying.
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(5) The parties will be given an opportunity to present evidence and testimony on their behalf and they may call witnesses.
(6) The parties and their counsel will be afforded an opportunity to examine and cross-examine all witnesses and parties.
(7) The panel members may ask questions at any time during the proceedings.
(8) The Chairperson may exclude any question ruled to be irrelevant or argumentative.
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(10) Adjournment of hearing.
(11) The Hearing Panel will go into executive session to decide the case.
Findings in ethics hearing: 7KHÀQGLQJVDQGUHFRPPHQGDWLRQIRUGLVFLSOLQHLIDQ\VKDOOEHUHGXFHGWRZULWLQJE\WKH+HDULQJ3DQHO
and submitted to the Board of Directors in accordance with the procedures of Part Four, Sections 22 and 23 of the Code of Ethics
and Arbitration Manual.
Use of counsel: A party may be represented in any ethics hearing by legal counsel or by a REALTOR® of their choosing (or both).
However, parties may not refuse to directly respond to requests for information or questions addressed to them by members of the panel
except on grounds of self-incrimination, or on other grounds deemed by the panel to be appropriate. In this connection, the panel need
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held responsible for the conduct of their counsel. Any effort by counsel to harass, intimidate, coerce, or confuse the panel members or
any party to the proceedings, or any action by counsel which is viewed by the panel as disruptive of the proceedings, shall be grounds
for exclusion of counsel. The decision to exclude counsel for any of the foregoing reasons shall be the result of a majority vote of the
members of the panel and shall be nonappealable. In the event counsel is excluded, the hearing shall be postponed to a date certain not
OHVVWKDQÀIWHHQQRUPRUHWKDQWKLUW\GD\VIURPGDWHRIDGMRXUQPHQWWRHQDEOHWKHSDUW\WRREWDLQDOWHUQDWHFRXQVHOSURYLGHG
however, that such postponement shall not be authorized if it appears to members of the panel that the action of counsel has been
undertaken by counsel to obtain a postponement or delay of the hearing.
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(Revised 11/12)
97
Code of Ethics and Arbitration Manual
Form #E-9a
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Outline of Procedure for Ethics Hearing
Involving a Complaint and Counter-Complaint
(To be Mailed in Advance to Both Parties)
Postponement of hearing: Postponement may be granted if there are extenuating circumstances. Requests for postponement must
be made in writing. Permission can be given by the Chair. If the request is approved by the Chair, all parties shall be advised of the
rescheduled hearing date.
Recording of the Hearing: The Board shall, and any party (may/may not), at their own expense, have a court reporter or recorder
present at the hearing, or may tape record the proceeding and, if transcribed, shall furnish a copy to the Secretary.
Method and Objective of Procedure: The Hearing Panel shall not be bound by the rules of evidence applicable in courts of law, but
shall afford all parties a full opportunity to be heard, present witnesses, and offer evidence, subject to its judgment as to relevance.
Due Process Procedure: The hearing will proceed as follows:
(1) Chairperson cites authority to hear case and explains reason for hearing.
(2) The complaint and counter-complaint will be read into the record.
7
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while testifying.
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Code of Ethics that he feels have been violated, explaining how the respondent/counter-complainant violated each Article and
refuting the contention that he violated any provisions of the Code of Ethics.
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Code of Ethics that she feels have been violated, explaining how the complainant/counter-respondent violated each Article and
refuting the contention that she violated any provision of the Code of Ethics.
(6) Complainant/counter-respondent presents his cause and defenses by offering testimony and evidence from himself and/or his
witness(es) to support the allegations of violations of the Code of Ethics by the respondent/counter-complainant and refuting the
allegations made by the counter-complainant.
(a) The respondent/counter-complainant may question the complainant/counter-respondent and/or his witness(es) immediately
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(7) Respondent/counter-complainant presents her case, offering testimony and evidence from herself and/or witness(es) to support the
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that she violated the Code of Ethics.
(a) The complainant/counter-respondent may question the respondent/counter-complainant and/or her witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
(b) The Hearing Panel may question the respondent/counter-complainant and/or her witness(es) immediately after each has
WHVWLÀHG
Code of Ethics and Arbitration Manual
98
(8) The complainant/counter-respondent may present additional testimony and evidence from himself and/or his witness(es) to further
support the allegations of violations of the Code of Ethics by the respondent/counter-complainant and/or refute the allegations
made by the respondent/counter-complainant.
(a) The respondent/counter-complainant may question the complainant/counter-respondent and/or his witness(es) immediately
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(9) The respondent/counter-complainant may present additional testimony and evidence from herself and/or her witness(es) to further
support the allegations of violations of the Code of Ethics by the complainant/counter-respondent and/or refute the allegations
made by the complainant/counter-respondent.
(a) The complainant/counter-respondent may question the respondent/counter-complainant and/or her witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
(b) The Hearing Panel may question the respondent/counter-complainant and/or her witness(es) immediately after each has
WHVWLÀHG
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PD\ÀUVWDVNDQ\UHPDLQLQJTXHVWLRQVRIWKHUHVSRQGHQWFRXQWHUFRPSODLQDQWDQGRUWKHUHVSRQGHQWFRXQWHUFRPSODLQDQW·V
witness(es). The respondent/counter-complainant may then ask any remaining questions of the complainant/ counter-respondent
DQGRURIWKHFRPSODLQDQWFRXQWHUUHVSRQGHQW·VZLWQHVVHV
(11) The Hearing Panel may question either the complainant/counter-respondent and/or the respondent/counter-complainant and/or
their respective witness(es).
(12) When the parties and Hearing Panel members have no further questions, the complainant/counter-respondent and respondent/
counter-complainant (respectively) may present uninterrupted closing statements.
(13) The Chair will then adjourn the hearing.
(14) The Hearing Panel will go into executive session to decide the case.
Findings in Ethics Hearing:7KHÀQGLQJVDQGUHFRPPHQGDWLRQIRUGLVFLSOLQHLIDQ\VKDOOEHUHGXFHGWRZULWLQJE\WKH+HDULQJ
Panel and submitted to the Board of Directors in accordance with the procedures of Part Four, Section 23 of the Code of Ethics and
Arbitration Manual.
Testimony: Any testimony relating to the character or general reputation of either party shall not be permitted unless the Hearing
3DQHOÀQGVWKDWVXFKWHVWLPRQ\KDVDGLUHFWEHDULQJRQWKHFDVH7KH&KDLUSHUVRQPD\H[FOXGHDQ\TXHVWLRQZKLFKKHRUVKHGHHPV
irrelevant or argumentative.
Use of counsel: A party may be represented in any hearing by legal counsel or by a REALTOR® of their choosing (or both). However,
parties may not refuse to directly respond to requests for information or questions addressed to them by members of the panel except
on grounds of self-incrimination, or on other grounds deemed by the panel to be appropriate. In this connection, the panel need not
DFFHSWWKHVWDWHPHQWVRIFRXQVHODVEHLQJWKHVWDWHPHQWVRIFRXQVHO·VFOLHQWLIWKHSDQHOGHVLUHVGLUHFWWHVWLPRQ\3DUWLHVVKDOOEHKHOG
responsible for the conduct of their counsel. Any effort by counsel to harass, intimidate, coerce, or confuse the panel members or any
party to the proceedings, or any action by counsel which is viewed by the panel as disruptive of the proceedings, shall be grounds
for exclusion of counsel. The decision to exclude counsel for any of the foregoing reasons shall be the result of a majority vote of the
members of the panel and shall be nonappealable. In the event counsel is excluded, the hearing shall be postponed to a date certain
QRWOHVVWKDQÀIWHHQQRUPRUHWKDQWKLUW\GD\VIURPWKHGDWHRIDGMRXUQPHQWWRHQDEOHWKHSDUW\WRREWDLQDOWHUQDWHFRXQVHO
provided, however, that such postponement shall not be authorized if it appears to members of the panel that the action of counsel has
been undertaken by counsel to obtain a postponement or delay of the hearing.
%HDGYLVHGDOOPDWWHUVGLVFXVVHGDUHVWULFWO\FRQÀGHQWLDO
(Adopted 11/98)
99
Code of Ethics and Arbitration Manual
Form #E-10
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
&HUWLÀFDWHRI4XDOLÀFDWLRQ
We, the undersigned, members of a Hearing Panel of the Professional Standards Committee (or Board of Directors or tribunal thereof)
of the
________________________________________________________________________________________________________,
Board or State Association
GRKHUHE\FHUWLI\WKDWZHDUHQRWGLVTXDOLÀHGE\DQ\UHDVRQVWDWHGKHUHLQIURPKHDULQJWKHFDVH
__________________________________________________ vs. __________________________________________________.
Cited case is a hearing addressing an alleged violation of the Code of Ethics or other membership duty as set forth in the bylaws of
the Board.
5HDVRQVIRU'LVTXDOLÀFDWLRQ $Q\PHPEHURIWKH+HDULQJ3DQHORU%RDUGRI'LUHFWRUVRUWULEXQDOWKHUHRIVKDOOEHGLVTXDOLÀHG
from hearing any case if the member:
(a) is related by blood or marriage to the complainant, respondent, or a REALTOR® acting as counsel for either the complainant or
respondent
(b) is an employer, partner, employee, or in any way is associated in business with the complainant, respondent, or a R EALTOR® acting
as counsel for either the complainant or respondent
(c) is a party to the hearing, or a party or witness in any pending case involving any party to this hearing
(d) knows of any reason acceptable to the Hearing Panel (or Board of Directors or tribunal thereof) that may prevent the member from
rendering an impartial judgment
__________________________________________________
_______________________________________, Chairperson
Type/Print Name
Signature
__________________________________________________
__________________________________________, Member
Type/Print Name
Signature
__________________________________________________
__________________________________________, Member
Type/Print Name
Signature
__________________________________________________
__________________________________________, Member
Type/Print Name
Signature
__________________________________________________
__________________________________________, Member
Type/Print Name
Signature
__________________________________________________
__________________________________________, Member
Type/Print Name
Signature
Dated: _______________________________, 20__________
127(1RPRUHWKDQRQHSHUVRQOLFHQVHGZLWKDQ\ÀUPSDUWQHUVKLSRUFRUSRUDWLRQPD\VHUYHRQWKHVDPHWULEXQDO7KLVOLPLWDWLRQGRHV
not preclude two or more individuals from the same franchise from serving if the franchises are independently owned and operated.
(Revised 11/09)
Code of Ethics and Arbitration Manual
100
Form #E-11
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Decision of Ethics Hearing Panel
of the Professional Standards Committee
Filed _______________________________, 20___________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
Complainant(s)
Respondent(s)
Findings of Fact: The basis for our decision is the conclusion of the Hearing Panel as to the following facts (use additional pages if
required):
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Conclusions of the Hearing Panel::HWKHPHPEHUVRIWKH+HDULQJ3DQHOLQWKHDERYHVWDWHGFDVHÀQGWKH5HVSRQGHQWVLQ
violation) (not in violation) of Article(s) __________________ of the Code of Ethics.
Recommendation for Disciplinary Action: We recommend to the Board of Directors the following action:
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
101
Code of Ethics and Arbitration Manual
7KHGHFLVLRQÀQGLQJVRIIDFWDQGUHFRPPHQGDWLRQVSUHFHGLQJZHUHUHQGHUHGE\DQHWKLFV+HDULQJ3DQHOFRPSULVLQJWKHIROORZLQJ
PHPEHUVZKRVHVLJQDWXUHVDUHDIÀ[HGEHORZ7KHKHDULQJWRRNSODFHRQBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
_______________________________________, Chairperson
__________________________________________, Member
Type/Print Name
Type/Print Name
_______________________________________
__________________________________________, Member
Signature
Signature
_______________________________________, Member
__________________________________________, Member
Type/Print Name
Type/Print Name
_______________________________________
__________________________________________ Member
Signature
Signature
_______________________________________, Member
Type/Print Name
_______________________________________
Signature
Notice: 7KLVGHFLVLRQLVQRWÀQDODQGLVVXEMHFWWRFHUWDLQULJKWVRIERWKWKHFRPSODLQDQWDQGWKHUHVSRQGHQW
Complainant’s Rights::LWKLQWZHQW\GD\VRIWUDQVPLWWDORIWKLVQRWLÀFDWLRQWKHFRPSODLQDQWPD\UHTXHVWDUHKHDULQJE\WKH
original Hearing Panel solely on the grounds of newly discovered material evidence which the complainant, in the exercise of reasonable
diligence, could not have discovered and produced at the original hearing. This request shall be directed to the Hearing Panel and the
Hearing Panel shall consider the request, which shall include (1) a summary of the new evidence and (2) a statement of what the new
HYLGHQFHLVLQWHQGHGWRVKRZDQGKRZLWPLJKWDIIHFWWKH+HDULQJ3DQHO·VGHFLVLRQ,IQRUHKHDULQJLVUHTXHVWHGRUZLWKLQWHQGD\V
DIWHUGHQLDORIDSHWLWLRQIRUUHKHDULQJWKHFRPSODLQDQWPD\ZLWKLQWZHQW\GD\VRIWUDQVPLWWDORIWKLVQRWLÀFDWLRQÀOHDQDSSHDO
ZLWKWKH3UHVLGHQWIRUDKHDULQJEHIRUHWKH'LUHFWRUVEDVHGRQO\XSRQDQDOOHJDWLRQRISURFHGXUDOGHÀFLHQFLHVRURWKHUODFNRISURFHGXUDO
due process that may have deprived the complainant of a fair hearing. A transcript or summary of the hearing shall be presented to
the Directors by the Chairperson of the Hearing Panel, and the parties and their counsel may be heard to correct the summary or the
transcript. No new evidence will be received (except such new evidence as may bear upon a claim of deprivation of due process), and
the appeal will be decided on the transcript or summary.
Respondent’s Rights: :LWKLQWZHQW\GD\VRIWUDQVPLWWDORIWKLVQRWLÀFDWLRQWKHUHVSRQGHQWPD\UHTXHVWDUHKHDULQJE\WKH
original Hearing Panel solely on the grounds of newly discovered material evidence which the respondent, in the exercise of reasonable
diligence, could not have discovered and produced at the original hearing. This request shall be directed to the Hearing Panel and the
Hearing Panel shall consider the request, which shall include (1) a summary of the new evidence and (2) a statement of what the new
HYLGHQFHLVLQWHQGHGWRVKRZDQGKRZLWPLJKWDIIHFWWKH+HDULQJ3DQHO·VGHFLVLRQ,IQRUHKHDULQJLVUHTXHVWHGRUZLWKLQWHQGD\V
DIWHUGHQLDORIDSHWLWLRQIRUUHKHDULQJWKHUHVSRQGHQWPD\ZLWKLQWZHQW\GD\VRIWUDQVPLWWDORIWKLVQRWLÀFDWLRQÀOHDQDSSHDOZLWK
WKH3UHVLGHQWIRUDKHDULQJEHIRUHWKH'LUHFWRUVFKDOOHQJLQJWKHGHFLVLRQDQGRUUHFRPPHQGDWLRQIRUGLVFLSOLQH7KHUHVSRQGHQW·VEDVHV
IRUDSSHDODUHOLPLWHGWRDPLVDSSOLFDWLRQRUPLVLQWHUSUHWDWLRQRIDQ$UWLFOHVRIWKH&RGHRI(WKLFVSURFHGXUDOGHÀFLHQF\RU
any lack of procedural due process, and (3) the discipline recommended by the Hearing Panel. A transcript or summary of the hearing
shall be presented to the Directors by the Chairperson of the Hearing Panel, and the parties and their counsel may be heard to correct
the summary or transcript. No new evidence will be received (except such new evidence as may bear upon a claim of deprivation of
due process), and the appeal will be decided on the transcript or summary.
Final Action by Directors:%RWKWKHFRPSODLQDQWDQGUHVSRQGHQWZLOOEHQRWLÀHGXSRQÀQDODFWLRQRIWKH'LUHFWRUV
NOTE TO HEARING PANEL: Respondents may only be found in violation of Articles they have been formally charged with having
violated. If the respondent is found in violation, the Hearing Panel will consider all records of previous violations and sanctions
imposed, whether by the current or by any other Association, when determining discipline and the rationale for the current action
FDQEHSURYLGHGWRWKHSDUWLHVDQGWKH'LUHFWRUVDVSDUWRIWKHGHFLVLRQ7KH+HDULQJ3DQHO·VFRQVLGHUDWLRQZLOOLQFOXGHZKHWKHUSULRU
disciplinary matters involve discipline that was held in abeyance and that will be triggered by a subsequent violation (including the
matter currently under consideration by the Hearing Panel). (Amended 11/13)
Code of Ethics and Arbitration Manual
102
Form #E-12
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Action of the Board of Directors (Ethics Hearing)
)RUXVHE\WKH%RDUGRI'LUHFWRUVLIQRDSSHDOKDVEHHQÀOHGWRWKH+HDULQJ3DQHO·VGHFLVLRQ
The decision of the Hearing Panel in the matter of ______________________________ vs. ______________________________
Complainant
Respondent
dated ___________________, 20______ (copy attached), came before the Board of Directors on _________________, 20______, and
was considered by the Directors.
The decision of the Hearing Panel and its recommendation for disciplinary action, if any, in the above-referenced case is hereby (check
one):
S
S DGRSWHGEXWWKHUHFRPPHQGDWLRQIRUGLVFLSOLQHLVPRGLÀHGDVIROORZV
adopted verbatim
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
S
S
remanded to the Hearing Panel for further consideration of the discipline recommended
S
U HYHUVHGDQGWKHFRPSODLQWLVGLVPLVVHGEHFDXVHWKHÀQGLQJVRIIDFWGRQRWVXSSRUWDSRVVLEOHYLRODWLRQRIWKH&RGHRI(WKLFV
remanded to the Professional Standards Committee for a new hearing by a different Hearing Panel based on perceived procedural
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__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
The action of the Board of Directors was adopted on _________________________________________, 20_______, by resolution.
For the Board of Directors:
__________________________________________________
_________________________________________, Secretary
Type/Print Name
Signature
103
Code of Ethics and Arbitration Manual
For use by the Board of Directors if appeal is held:
The decision of the Hearing Panel in the matter of ______________________________ vs. ______________________________
Complainant
Respondent
GDWHGBBBBBBBBBBBBBBBBBBBBBBBFRS\RIWKH+HDULQJ3DQHO·VGHFLVLRQDWWDFKHGZDVDSSHDOHGE\BBBBBBBBBBBBBBBBBBBBBB
Appellant
and was considered by the Board of Directors on _________________, 20______.
$FRS\RIBBBBBBBBBBBBBBBBBBBBBB·VDSSHDODOOHJLQJBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBLVDWWDFKHG
Appellant
Indicate Basis(es) for Appeal
7KH+HDULQJ3DQHO·VGHFLVLRQDQGUHFRPPHQGDWLRQIRUGLVFLSOLQDU\DFWLRQLIDQ\LQWKHDERYHUHIHUHQFHGFDVHLVKHUHE\FKHFNRQH
S
adopted verbatim
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___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
S
remanded to the Hearing Panel for further consideration of the discipline recommended
S
remanded to the Professional Standards Committee for a new hearing by a different Hearing Panel based on perceived procedural
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reversed and the complaint is dismissed
5HDVRQVIRUPRGLÀFDWLRQUHPDQGUHMHFWLRQRIWKH+HDULQJ3DQHO·VGHFLVLRQ
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
___________________________________________________________________________________________________________
Disposition of Appeal Deposit (if any):
S
to be returned to Appellant
S
to be retained by the Board
The action of the Board of Directors was adopted on _________________________________________, 20_______, by resolution.
For the Board of Directors:
__________________________________________________
_________________________________________, Secretary
Type/Print Name
Signature
(Revised 5/07)
Code of Ethics and Arbitration Manual
104
Form #E-13
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Request for Appeal (Ethics)
To the President of the ______________________________________________________________________________________
Board or State Association
In the case of: ____________________________________________ vs. ______________________________________________.
Complainant
Respondent
I (we), __________________________________________________, do hereby request an appeal before the Board of Directors of
the _____________________________________________________________________________________________________.
Board or State Association
My (our) appeal is based on the following:
Check one or more and set forth in reasonable detail (narrative) the facts and evidence which support the bases cited. Attach narrative
WR$SSHDO)RUP&RPSODLQDQWPD\RQO\DSSHDORQSURFHGXUDOGHÀFLHQF\RUODFNRIGXHSURFHVV
S
Misapplication or misinterpretation of an Article(s) of the Code of Ethics
S 3URFHGXUDOGHÀFLHQF\RUDQ\ODFNRISURFHGXUDOGXHSURFHVV
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The discipline recommended by the Hearing Panel
The Request for Appeal Form must be accompanied by a deposit in the amount of $____________________* made payable to the
________________________________________________________________________________________________________.
Board or State Association
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by the Directors considering the appeal.
NOTE #2: Only those facts and issues raised in this written request will be considered by the Board of Directors at the appeal hearing.
Dated: ____________________________________________
Name (Type/Print ) __________________________________
Name (Type/Print) __________________________________
Signature __________________________________________
Signature _________________________________________
Address ___________________________________________
Address ___________________________________________
__________________________________________________
__________________________________________________
Phone _____________________________________________
Phone ____________________________________________
(Revised 5/05)
*Not to exceed $500.
105
Code of Ethics and Arbitration Manual
Form #E-14
__________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
2IÀFLDO1RWLFHRI$SSHDO+HDULQJ(WKLFV
In the case of: ____________________________________________ vs. ______________________________________________.
Complainant
Respondent
$ERYHSDUWLHVDUHKHUHE\QRWLÀHG
(1) _____________________________________ has appealed the decision of the Hearing Panel in the above-cited case, based on
Appellant
__________________________________________________________________________________________________________.
Indicate Basis(es) for Appeal
A copy of the Request for Appeal, together with its supporting documentation, is attached.
(2) The Board of Directors will meet on __________________________________, 20______, _________ A.M. or _________ P.M.
Day
Month
at _____________________________________________________________________________________to hear the appeal.
Place of Hearing
(3) The members of the Board of Directors who will hear the appeal are:
_______________________________________________
__________________________________________________
_______________________________________________
__________________________________________________
_______________________________________________
__________________________________________________
(If more space is needed, attach list of other Directors who will hear the appeal.)
(4) Either party may be represented by counsel, and each party is required to give the Board and the other party written notice of an
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to representation, but may result in a continuance of the hearing if the Appeal Tribunal determines that the rights of any other party
require representation by counsel.
(
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from the appeal hearing of any member of the Board of Directors for the following reasons:
(a) is related by blood or marriage to the complainant, respondent, or a R EALTOR® acting as counsel for either the complainant or
respondent
(b) is an employer, partner, or employee or in any way associated in business with the complainant, respondent, or a R EALTOR®
acting as counsel for either the complainant or respondent
(c) is a party to the hearing
(d) knows of any reason that may prevent the member from rendering an impartial judgment
(e) has served as a member of the Grievance Committee initially reviewing the ethics complaint or as a member of the professional
standards Hearing Panel which reached the decision currently on appeal
(6) The parties shall not discuss the case with any member of the Hearing Panel or Board of Directors prior to the appeal hearing or
after the appeal hearing and prior to announcement of the decision of the Directors.
Code of Ethics and Arbitration Manual
106
Respectfully submitted,
___________________________________________________ , Secretary
Signature
_______________________________________________________________
Type/Print Name
_______________________________________________________________________________________________________________________________________
Board or State Association
Dated: __________________________________, 20_______
(Revised 11/96)
107
Code of Ethics and Arbitration Manual
Form #E-15
Checklist of Professional Standards Concerns
IRU(OHFWHG2IÀFHUVDQG'LUHFWRUVDQGIRU
([HFXWLYH2IÀFHUVRI%RDUGVRIREALTORS®
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(1) Concern for the obligation of the Board to enforce the Code of Ethics (see Article IV, Bylaws, NATIONAL ASSOCIATION OF
REALTORS®).
S
(2) Concern for the enhanced public image and credibility of REALTORS®, REALTOR-ASSOCIATE®s, and the Board.
S
(3) Concern for liability of the Board related to Code enforcement — minimal if correct; serious if done inaccurately or
inappropriately.
S
(4) Concern for sound procedures, due process, and fairness—every member entitled.
S
(5) ConcernWKDWWKH%RDUG·VSURIHVVLRQDOVWDQGDUGVSURFHGXUHVDUHVXEVWDQWLYHO\LQFRPSOLDQFHZLWK1DWLRQDO$VVRFLDWLRQDQG
State Association procedures—ensures coverage of Errors and Omissions Insurance.
(The National Association recommends adoption of the Code of Ethics and Arbitration Manual, as adapted to comply with
state law.)
S
(6) Concern for wise appointments to the Grievance Committee and Professional Standards Committee—mature, experienced,
and knowledgeable individuals of judicious temperament.
(a) President-Elect—start to consider potential appointees early.
(b) Select best possible Chairperson.
(c) Select competent Committee Members.
S
(7) ConcernIRU/HDGHUVKLS,QYROYHPHQW³3UHVLGHQW·VSHUVRQDOFRPPLWPHQWWR&RGHDZDUHQHVVWUDLQLQJSURJUDPVDQGSURSHU
Code enforcement.
S
(8) Concern for accountability of Grievance Committee and Professional Standards Committee Members.
S
(9) ConcernIRUGLVWLQJXLVKLQJEHWZHHQ´HWKLFVµDQG´DUELWUDWLRQµFDVHV
S
(10) Concern that ethics hearings serve their purposes—education of members and vindication of the Code.
S
(11) ConcernWKDWDUELWUDWLRQEHOLPLWHGWR´SURSHUO\DUELWUDEOHPDWWHUVµ
S
(12) Concern that the Grievance Committee does not exceed its function of making preliminary reviews to determine proper
disposition of ethics complaints and requests for arbitration.
S
(13) ConcernWKDW%RDUG2IÀFHUVDQGVWDIIQRWEHJLYHQRUDVVXPHUHVSRQVLELOLW\EH\RQGWKHLUSURSHUUROHLQSURIHVVLRQDOVWDQGDUGV
matters.
S
(14) ConcernWKDWHWKLFVDQGDUELWUDWLRQPDWWHUVEHKHDUGVHSDUDWHO\³DUELWUDWLRQÀUVWWKHQHWKLFV
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(15) ConcernWKDWWKH%RDUGKDVDFFHVVWROHJDOFRXQVHODQGWKDWFRXQVHO·VLQYROYHPHQWLQSURIHVVLRQDOVWDQGDUGVSURFHHGLQJVRU
in reviewing professional standards decisions is routine.
S
(16) Concern that the public is provided adequate information and assistance to fully understand what the Board can do and does
do, and what the Board cannot do.
S
(17) ConcernWKDW%RDUGKHDULQJVDUHFRQGXFWHGLQVWULFWDFFRUGDQFHZLWKWKHSURIHVVLRQDOVWDQGDUGVSURFHGXUHVRIWKH%RDUG·V
bylaws.
Code of Ethics and Arbitration Manual
108
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(18) Concern that professional standards procedures and proceedings are unbiased and conducted without fear or favor— ensure
impartiality.
S
(19) Concern that the parties are aware that an appeal remedy is always available in ethics matters.
S
(20) Concern that the Board of Directors understands its role in professional standards matters.
(a) Ethics—appeal.
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process.”
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(21) ConcernIRUFRQÀGHQWLDOLW\RISURIHVVLRQDOVWDQGDUGVSURFHHGLQJV
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(22) ConcernIRUSURSHUSXEOLFDWLRQRIGHFLVLRQVDVVSHFLÀHGLQWKHCode of Ethics and Arbitration Manual —limited dissemination
RIÀQGLQJV
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(23) Concern for matters that are currently being litigated.
(a) No ethics hearing while criminal litigation is pending on same matter.
(b) On the advice of Board legal counsel, an ethics hearing may proceed or may be held in abeyance if civil litigation or
proceeding before state real estate licensing authority or other state or federal regulatory or administrative agency is
pending on the same matter.
(c) Never hold an arbitration hearing when the arbitrable matter is the subject of litigation.
S
(24) Concern for common sense—encourage resolution of disputes by mediation (reduces arbitration case load).
S
(25) ConcernIRUWUDLQLQJ³WKH1DWLRQDO$VVRFLDWLRQUHFRPPHQGVWKDWDQ(GXFDWLRQ6XEFRPPLWWHHRIWKH%RDUG·V3URIHVVLRQDO
Standards Committee be appointed and charged with providing a continuing education program for Board Members in Code
of Ethics awareness, understanding, and procedures.
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(26) Concern for Code enforcement training—State and Board.
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(27) Concern for dealing promptly and fairly with complaints brought by the public.
S
(28) Concern for liability of REALTORS® in dealing with the public.
S
(29) Concern for changes in professional standards policies and procedures, in revisions of the Code, new or revised interpretations
of the Code, and revised editions of training aids and National Association publications related to the Code and its enforcement.
109
Code of Ethics and Arbitration Manual
Form #E-16
Seating Arrangements for Hearings
attorney
panel member
respondent
panel member
witness
panel chairperson
panel member
witness
panel member
complainant
attorney
board attorney
recorder
secretary
attorney
panel member
respondent
panel member
witness
panel chairperson
panel member
witness
panel member
complainant
attorney
board attorney
recorder
Code of Ethics and Arbitration Manual
110
secretary
Form #E-17
Ethics Activity Report
Boards are encouraged to publish periodic Code of Ethics activity reports. This model is a suggestion, and Boards may choose to
provide other relevant information.*
1XPEHURIHWKLFVFRPSODLQWVÀOHGIURPBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBWRBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
Date
Article(s)
of the Code
alleged
to have been
violated
Referred by
Grievance
Committee for
hearing
<HV 1R
Date
Article(s)
found by
Hearing Panel
to have been
violated
Appeal of
Hearing Panel
decision
<HV 1R
Board of
Directors
ÀQDODFWLRQ
Discipline
imposed
(if any)
Complaint #1
Complaint #2
Complaint #3
Complaint #4
Complaint #5
Complaint #6
Complaint #7
Complaint #8
Complaint #9
Complaint #10
1RUHSRUWVKDOOLQFOXGHWKHQDPHVRILQGLYLGXDOVRUÀUPV
(Revised 11/00)
111
Code of Ethics and Arbitration Manual
Form #E-18
Outline of Content of Petition for Declaratory Relief
______________________________________________________________________
Board of REALTORS® KHUHDIWHU´SODLQWLIIµ
Name
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Name
(1) Plaintiff is a corporation duly organized and existing under the laws of the State of ____________________________________
State
and is a Member Board of _________________________________ Association and the NATIONAL ASSOCIATION OF REALTORS®.
State
Note to Preparer: Choose either (a) or (b) (or [i] [ii]) in each section throughout this form as appropriate.
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(b) relating to discipline of members for violation of their obligations as members.
A true and exact copy of the bylaws is attached as Exhibit A.
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Date
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proceedings were duly taken and had pursuant to the bylaws, and in consequence plaintiff has concluded that defendant
should be ___________________________ from membership and will ______________ unless the Court holds otherwise.
Suspended or expelled as the case may be
Suspend or expel
(4) An actual controversy exists between plaintiff and defendant in that defendant claims
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and unlawful, and defendant threatens
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or some of them for damages in the event plaintiff denies membership to defendant, praying that this court enjoin plaintiff from
______________________________________________________________________________________________________.
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Plaintiff disputes those contentions and contends that its conclusion
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proper and lawful.
(b) that defendant should be suspended or expelled from membership and suspension or expulsion is and would be entirely proper
and lawful.
(5) Plaintiff is
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(b) not putting into effect its decision to suspend or expel defendant from membership
until declaration of the rights of the parties in the premises is made in this case.
(6) WHEREFORE, plaintiff ____________________________________________________________ Board of REALTORS® prays
Name
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(ii) suspend or expel defendant
is lawful and proper that such ________________________________________________ will not give rise to any cause of
Rejection/Suspension or expulsion
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(b) for its costs of suit herein incurred, and
(c) for such other and further relief as may be proper.
Note: (a) Relates to complaint based on intent to reject membership application.
(b) Relates to complaint based on intent to suspend or expel a member.
Petitions for declaratory relief must take the form established by local court procedure. No petitions should be prepared except by
the Board’s legal counsel.
Code of Ethics and Arbitration Manual
112
Form #E-19
Sample Format of Agreement Between ______ and ______ Boards of REALTORS®
to Establish Multi-Board (or Regional) Professional Standards Enforcement Procedures
(1) Authority
The authority for the establishment and utilization of multi-Board (or regional) professional standards enforcement procedures
shall be established by this Agreement approved by the Boards of Directors of ___________________________________ and
____________________________________ Boards of REALTORS®DQGFRQÀUPHGE\DSSURYDORIWKHJHQHUDOPHPEHUVKLSDWDGXO\
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(2) Geographic Area
The geographic area served by this Agreement shall be the area of the combined territorial jurisdiction assigned by the NATIONAL
ASSOCIATION OF REALTORS® to the Boards which are signatories to this Agreement.
(3) Purpose
The purpose of this Agreement is to create multi-Board (or regional) professional standards enforcement procedures providing for
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and an Appeal Panel comprising members from each signatory Board for enforcement of the Code of Ethics, including the mediation
of disputes and the conduct of arbitration hearings, involving members of the signatory Boards to ensure impartial and unbiased
Hearing Panels for the conduct of hearings on a basis designed to provide this service and meet the responsibilities of the signatory
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(4) Composition of Tribunals
(a) This Agreement authorizes the establishment of a multi-Board (or regional) Grievance Committee. The Grievance Committee
shall be composed of at least one (1) member in good standing of each signatory Board.
Members of the Grievance Committee from each signatory Board shall be appointed by the Presidents of the respective Boards,
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member from their respective Boards who may be unable to serve for any reason. The Grievance Committee shall select its own
Chairperson (or, alternatively, the Grievance Committee Chairperson shall be selected from members of the Grievance Committee
by a majority vote of the Presidents of the Boards which are signatories to this Agreement).
NOTE: There must be at least three (3) individuals serving on the multi-Board Grievance Committee, and it is desirable that the
number be greater to provide an adequate number of members to handle the anticipated case load without undue stress.
(b) This Agreement also authorizes the establishment of a multi-Board (or regional) Professional Standards Committee. The Professional
Standards Committee shall be composed of at least two (2) members in good standing from each signatory Board.
The members of the Professional Standards Committee shall be appointed by the Presidents of the respective Boards, subject to
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Committee shall select its own Chairperson (or, alternatively, the Chairperson shall be selected from members of the Professional
Standards Committee by a majority vote of the Presidents of the Boards which are signatories to this Agreement).
NOTE: There shall be at least nine (9) members of the Professional Standards Committee, and more, if feasible, to handle the
anticipated case load without undue stress.
(c) Members of the Grievance Committee and the Professional Standards Committee shall be appointed initially in terms of one
(1), two (2), and three (3) years (one-third for each term). New appointments shall be made for three (3) year terms as each term
expires. Members of the committees shall be eligible for reappointment.
113
Code of Ethics and Arbitration Manual
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(principals) are required by their Board which is a signatory to this agreement to mediate otherwise arbitrable disputes
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be provided the opportunity to mediate a dispute arising out of a real estate transaction and their relationship as REALTORS®
prior to the arbitration of the dispute. (Revised 11/11)
(5) Operation
(a) Professional standards hearings and the organization and procedures incident thereto shall be governed by the Code of Ethics
and Arbitration Manual of the NATIONAL ASSOCIATION OF R EALTORS® as amended from time to time, and as adapted to
conform to the provisions of applicable state law, and which is hereby agreed shall be considered as adopted and incorporated
into the bylaws of each Board signatory to this Agreement.
NOTE: Any matters of local Board option should be considered and agreed on in advance as necessary and the signatory
Boards should also clarify which Board will be responsible for administering the process. The following is an example
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The respondent’s local Board, or the Board through which the respondent gains access to and use of the MLS, will be
responsible for administering the procedures and all optional provisions (see pages i and ii of the Code of Ethics and
Arbitration Manual) of that Board will control.
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of arbitration requests) shall be heard by those members of the Committee who did not serve on the original tribunal. If panels
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Appeal to an ethics determination rendered by the multi-Board (or regional) Professional Standards Committee shall be heard
by those members of the Committee who did not constitute the original Hearing Panel. (For this reason, there should be an
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(c) Appeal is not provided from the decision of an arbitration panel established under this Agreement, except with respect to
a claim by a party alleging deprivation of due process. Such a claim shall be heard by an Appeal Panel as described in the
second paragraph of (b) above.
(d) In matters of alleged unethical conduct, any determination rendered by a Hearing Panel of the multi-Board (or regional)
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(e) In matters involving arbitration, any determination rendered by a Hearing Panel of the multi-Board (or regional) Professional
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event a party to an arbitration refuses to pay an award in arbitration, the Board in which the award recipient holds membership
shall advise the award recipient to seek judicial enforcement as set forth in Section 56, Part Ten, and in Appendix III, Part
Ten, of the Code of Ethics and Arbitration Manual.
(f) In the event a complainant alleges that the respondent has improperly refused to submit a dispute to arbitration (or to
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Chairperson and chosen from the individuals who were not selected to serve on the original Arbitration Hearing Panel, or
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Presidents). The procedure for notices, time of notices, and hearing prescribed for matters before a Hearing Panel shall
apply. The sole question of fact to decide will be whether the party has refused to submit an arbitrable matter to arbitration
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a properly arbitrable matter, the (specify body — name of tribunal) may direct implementation of appropriate sanction,
* Requiring REALTORS®SULQFLSDOVWRPHGLDWHRWKHUZLVHDUELWUDEOHGLVSXWHVUHTXLUHVHVWDEOLVKPHQWRIDQDIÀUPDWLYHREOLJDWLRQLQWKH%RDUG·V
governing documents. Enabling bylaw provisions can be found at REALTOR.org (see Model Bylaws).
Code of Ethics and Arbitration Manual
114
including suspension or expulsion of the member from the local Board of R EALTORS® and/or its MLS.The decision of the
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or any signatory Board. (Revised 11/11)
(6) Reservation of Rights
(a) It is understood and agreed by the Boards signatory to this Agreement that each Board reserves to itself all authority, rights,
and privileges as have been assigned to it by its Charter and agreement with the NATIONAL ASSOCIATION OF R EALTORS®,
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(b) It is further understood and agreed that any Board signatory to this Agreement may withdraw from the Agreement at any
time provided the withdrawing Board shall provide notice to the other signatory Boards ninety (90) days in advance of
the date of withdrawal.
IN WITNESS THEREOF, the parties have hereto set their hands and seals on this _____ day of __________________, 20______.
The effective date of this Agreement shall be _____________________________________________________________, 20______.
Attested by
__________________________________________________
___________________________________________________
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__________________________________________________
__________________________________________________
Board of REALTORS®
Date
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Board of REALTORS®
Date
__________________________________________________
__________________________________________________
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Board of REALTORS®
Date
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__________________________________________________
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Board of REALTORS®
Date
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Date
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Board of REALTORS®
Date
(Revised 11/13)
115
Code of Ethics and Arbitration Manual
Form #E-20
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Notice to Respondent (Ethics) and
Optional Waiver of Right to Hearing
In the case of ________________________________________ vs. _________________________________________________,
Complainant
Respondent
To _____________________________________________________________________________________________, Respondent:
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for review as a matter of an alleged violation of Article(s) __________________________________________ of the Code of Ethics or
other conduct subject to disciplinary action.
<RXKDYHDULJKWWRDKHDULQJRQWKLVPDWWHUDVSURYLGHGLQWKHCode of Ethics and Arbitration Manual, if you desire.
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and sign the reverse side of this form. If you do not acknowledge the conduct alleged in the complaint and do not waive the right to a
hearing within twenty (20) days after receipt of the complaint, you will have the opportunity to reply to the complaint and a hearing
will be scheduled in accordance with the Code of Ethics and Arbitration Manual.
Respectfully submitted,
__________________________________________________
_________________________________________, Secretary
Type/Print Name
Signature
____________________________________________________________________________________________________________
Board or State Association
Dated: _______________________________, 20__________
(Revised 11/00)
Code of Ethics and Arbitration Manual
116
Waiver of Right to a Hearing
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yes _________
(1) I have not been found in violation of the Code of Ethics by any Board or Association of R EALTORS® in the preceding
three (3) years.
yes _________
(2) I acknowledge the conduct alleged in the complaint.
yes _________
(3) I agree to accept discipline which may include only one or more of the following: a letter of warning or reprimand,
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in excess of $15,000, should a violation of the Code of Ethics ultimately be determined.
yes _________
(4) I waive the right to a hearing.
__________________________________________________________________, ___________________________, 20_______.
Signature of Respondent
Date
If You Request A Waiver of a Hearing
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Panel. The panel will meet in executive session; neither the complainant nor the respondent will be present. The panel will determine
whether the allegations, as acknowledged by the respondent, support a violation of one or more Articles of the Code of Ethics. The
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found. Discipline may include only one or more of the following: a letter of warning or reprimand, mandatory attendance at a relevant
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Manual. Any appeal of the decision will be in accordance with the Code of Ethics and Arbitration Manual.
(Revised 11/13)
117
Code of Ethics and Arbitration Manual
Form #E-21
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Sample Letter of Reprimand/
Letter of Warning
RE: Letter of Reprimand (or Letter of Warning), Case ______________
Dear ____________________:
The Board of Directors met on __________________________ to consider the above-referenced case. It was the decision of the
Date
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Article(s)
and the discipline recommended by the Hearing Panel.
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Date
attend _______________________________________________________ by ____________________________________________,
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_________________________________________________________________________________________________________
Insert whatever additional discipline will automatically be imposed as recommended by the Hearing Panel and approved by the Board of Directors
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Sincerely,
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NOTE: The second paragraph of this letter is an example; a letter of reprimand or warning may be the only discipline imposed.
Likewise, the third paragraph of the sample letter could be deleted if no letter of reprimand or warning is issued when informing the
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Code of Ethics and Arbitration Manual
118
Form #E-22
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Appeal of Grievance Committee (or Hearing Panel)*
Dismissal of Ethics Complaint
In the case of ________________________________________ vs. _________________________________________________,
Complainant
Respondent
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Directors consider only the information and documents considered by the Grievance Committee (or Hearing Panel)* with this form
and explanation below.
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I/we appeal the dismissal of the above-referenced ethics complaint.
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I/we appeal the dismissal of Article(s) ____________________________________ from the above-referenced ethics complaint.
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_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Complainant(s):
__________________________________________________
__________________________________________________
Signature of Complainant
Signature of Complainant
__________________________________________________
__________________________________________________
Type/Print Name
Type/Print Name
__________________________________________________
__________________________________________________
Street Address
Street Address
__________________________________________________
__________________________________________________
City
City
State
Zip Code
(__________) ______________________________________
State
Zip Code
(__________) _______________________________________
Phone
Phone
__________________________________________________
__________________________________________________
Dated
Dated
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(Revised 5/06)
119
Code of Ethics and Arbitration Manual
Form #E-23
____________________________________________________________________________________________________________
Board or State Association
____________________________________________________________________________________________________________
Address
City
State
Zip
Action of the Appeal Hearing Tribunal
(Ethics Complaint)
The decision of the Grievance Committee (or Hearing Panel) to dismiss the ethics complaint in the matter of:
___________________________________________________ vs. __________________________________________________,
Complainant
Respondent
dated ______________________, was appealed by ______________________ and was considered on _________________________
Date
Appellant
Date
by the Appeal Tribunal of the Board of Directors of ______________________.
Board/Association
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The decision above was rendered by an Appeal Tribunal of the Board of Directors of the ______________________ comprised
Board/Association
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Type/Print Name
Type/Print Name
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_______________________________________________________________
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____________________________________________, Member
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_______________________________________________________________
Signature
(Adopted 11/01)
Code of Ethics and Arbitration Manual
120
Statements of Professional Standards Policy
Applicable to Arbitration Proceedings ....................................................... 123
Part Seven — General Provisions Relating to Arbitration ........................... 131
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Part Eight — Membership Duties and Enforcement ..................................... 135
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Part Nine — The Grievance Committee ......................................................... 137
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121
ARBITRATION
ARBITRATION
Part Eleven — Interboard Arbitration Procedures ........................................ 183
Part Twelve — Conduct of an Arbitration Hearing ....................................... 187
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Code of Ethics and Arbitration Manual
122
Statements of Professional Standards Policy
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1. Article 17, Code of Ethics
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123
Code of Ethics and Arbitration Manual
Arbitration
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12. Adoption of Code of Ethics or Standards
of Practice by Member Boards and State
Associations
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13. Articles and publications on the
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ethics and arbitration hearings
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20. Statement of policy related to Article 17 of
the Code of Ethics
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21. Adoption of the Code of Ethics and
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22. Board and State Association publications or
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of Ethics and its enforcement
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23. Disputes arising out of circumstances
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elected to board membership
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where Boards have limited membership
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25. Expenses related to conduct of hearings
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26. Burdens and standards of proof in
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27. Consolidation of arbitration claims arising
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28. Participation in litigation rather than
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30. Participation in voluntary arbitration
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35. Separation of ethics complaint and
arbitration request
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38. Hearing Panels to be conversant with
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Part Eight—
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Code of Ethics and Arbitration Manual
Appendix I to Part Ten
Arbitrable Issues
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out of their relationship as REALTORS®, the REALTORS® shall
mediate the dispute if the Board requires its members to
mediate. If the dispute is not resolved through mediation, or if
mediation is not required, REALTORS® shall submit the dispute to
arbitration in accordance with the policies of the Board rather
than litigate the matter.
In the event clients of REALTORS® wish to mediate or arbitrate
contractual disputes arising out of real estate transactions,
REALTORS® shall mediate or arbitrate those disputes in
accordance with the policies of the Board, provided the clients
agree to be bound by any resulting agreement or award.
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compensation in cooperative transactions, that arise out of
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true on their face, is the matter at issue related to a real estate
transaction and is it properly arbitrable—i.e., is there some
basis on which an award could be based?
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of the Code of Ethics and Arbitration Manual, questions continue
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should try to ensure that all appropriate parties are named as
complainants or respondents. If it appears that there may be
Code of Ethics and Arbitration Manual
Ethics
related claims involving other parties arising out of the same
facts, the Grievance Committee may suggest to either the
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A Board rule or a rule of a Multiple Listing Service owned
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limits or restricts the REALTOR® in his relations with a potential
purchaser, affecting recognition periods or purporting to
predetermine entitlement to any award in arbitration, is an
inequitable limitation on its membership.
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The proximate cause; the cause originating a series of
events which, without break in their continuity, result in the
accomplishment of the prime object. The inducing cause; the
direct or proximate cause. Substantially synonymous with
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. . . [T]he Board or its MLS may not establish a rule or
regulation which purports to predetermine entitlement to
any awards in a real estate transaction. If controversy arises
as to entitlement to any awards, it shall be determined by a
hearing in arbitration on the merits of all ascertainable facts
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A broker will be regarded as the “procuring cause” of a sale, so
as to be entitled to commission, if his efforts are the foundation
on which the negotiations resulting in a sale are begun. A
cause originating a series of events which, without break in
Code of Ethics and Arbitration Manual
their continuity, result in accomplishment of prime objective
of the employment of the broker who is producing a purchaser
ready, willing, and able to buy real estate on the owner’s terms.
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Arbitration
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Factors for Consideration by Arbitration
Hearing Panels
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on Multiple Listing Policy. (Adopted 11/98)
Factor #1. No predetermined rule of entitlement
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estrangement
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Code of Ethics and Arbitration Manual
Arbitration
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Code of Ethics and Arbitration Manual
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Fact Situation #8
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Code of Ethics and Arbitration Manual
Arbitration
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(Adopted 11/03)
Appendix III to Part Ten
Rationale of Declaratory Relief
and of Judicial Enforcement in Matters of Arbitration
With respect to arbitration awards rendered by Member Boards,
it is important that the Board utilize the powers of local courts
to support and enforce its arbitration awards and any Board
actions contemplated in connection with arbitration by the Board.
Both the Petition for Declaratory Relief and Petition for Judicial
Enforcement should be employed by the Board where it will
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legal vulnerability and liability to the Board and its members.
These legal procedures, or similar legal devices available in a
given state, should be employed in the following circumstances:
(1) Refusal to Arbitrate: If a membership obligation to
arbitrate disputes is permitted by applicable law, it is required
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standards procedures. Refusal of a member to arbitrate shall
be determined by a hearing by the Board of Directors as
VSHFLÀHGLQPart Ten, Section 49, Initial Action of Directors.
Upon determination of the sole question of fact that a Board
Member has refused to arbitrate a properly arbitrable matter,
the Board of Directors may direct the implementation of
appropriate sanction, and should, if it has reason to believe that
the imposition of sanction will become the basis of litigation
and a claim for damages consequent to such sanction, delay the
effective date of implementing the sanction to a date following
receipt by the Board of a judicial decision in a petition for
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of its action.
(2) Refusal to Abide by an Award in Arbitration: However, in
respect to a member agreeing and submitting to arbitration but
then refusing to abide by the award, the Board should not, in the
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proceeding except where an Association has adopted procedures
requiring non-prevailing parties to pay awards or deposit an
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(see Section 53[c]-[f]). Rather, the Board should encourage the
award recipient to seek enforcement of the award in the courts,
and suggest that a request be made for payment of legal costs
incurred in seeking judicial enforcement. (Amended 11/11)
In such a first instance, the Board shall not initiate any
disciplinary proceeding. If an individual repeatedly refuses
to abide by awards in arbitration for reasons which, in the
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frustrate the intent of Article 17 rather than a purpose to ensure
due process, the Board may initiate disciplinary proceedings
for violation of Article 17. Such proceedings will be in addition
to and not in lieu of Board support of judicial enforcement of
the award by the award recipient. Again, as with declaratory
judgment proceedings, some reluctance may be expressed by
Member Boards and their members with respect to judicial
enforcement of the award.
165
However, the reasons for a policy under which the primary
responsibility for the enforcement of the award rests with
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otherwise, of the Board) are as follows:
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mandatory membership obligation imposed by the Code
inherently involves some limit on a REALTOR®·VULJKWWR
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in instances where state law recognizes the right to enter into
binding arbitration agreements and only on terms consistent
with state law.
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by law, the law provides that the person against whom
the arbitration award is made is entitled to certain limited
defenses against efforts to enforce the award. These defenses
include lack of procedural due process, refusal to allow
counsel to be present at the hearing, etc. Although courts are
generally reluctant to set aside awards in arbitration, they will
do so in instances where the arbitration procedure is found
to be defective.
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of membership to induce a participant in an arbitration
procedure to abide by that award can be and frequently are
viewed as effective foreclosure of the defenses available
under the arbitration laws; that is, the member against whom
the arbitration award is entered is faced with the choice of
either acquiescing to an arbitration procedure which he/she
deems procedurally or legally defective or suffering serious
injury through the deprivation of valuable membership
services.
Board action to suspend or terminate a member for failure
to abide by an arbitration award creates an unnecessary risk
of serious legal liability.
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claim of defective arbitration is upheld by the court, then
the suspension was unwarranted, the denial of Board
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responsibility of the Board. On the other hand, if arbitration
was valid, then a simple proceeding in court by the recipient
of the arbitration award will produce a judicially enforceable
award with no risk to the Board. If a Board is concerned about
vindicating its arbitration procedures at a minimal cost, it
may consider reimbursing the recipient of the award for any
cost incurred in seeking the judicial enforcement, when such
costs are not reimbursed by the court.
Code of Ethics and Arbitration Manual
Appendix IV to Part Ten
Rationale for No Findings of Fact in Awards
Arbitration awards, unlike ethics decisions, are not subject to
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money, they differ from the decisions rendered by ethics hearing
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arbitration does not prevail is in no way an indication that the
non-prevailing party behaved in anything other than an ethical
manner. It simply means that they were not entitled to a particular
sum of money with respect to a particular transaction. Second, the
determinations rendered through arbitration have no effect on a
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real estate community generally, whereas an adverse decision
in a matter involving ethics demonstrates that the respondent
has, in some way, failed to live up to the standards expected of
REALTORS® and may result in discipline being imposed, including
the possibility of suspension or expulsion from membership.
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entire course of conduct giving rise to a dispute as demonstrated
by the evidence and testimony presented in the course of the
arbitration hearing. There is generally not a single act (or in some
cases failure to act), statement, or particular event, but rather
the entire course of conduct or events related to a transaction
that forms the basis for the hearing panel making its arbitration
award. Reducing, to a comprehensive writing, the grounds on
which an arbitration award was made, could frequently be far
PRUHFRPSOH[³DQGGLIÀFXOW³WKDQIRUPXODWLQJWKHÀQGLQJVRI
fact (which may involve a single act or disclosure, or failure to
act or disclose) which results in a determination that the Code of
Ethics has been violated.
RISURYLGLQJH[SODQDWLRQVRUUDWLRQDOHRU´ÀQGLQJVµLVFRQWUDU\
WRWKHSROLF\HPERGLHGLQ2IÀFLDO,QWHUSUHWDWLRQRI$UWLFOH,
6HFWLRQRIWKH1DWLRQDO$VVRFLDWLRQ·VE\ODZVZKLFKSURKLELWV
any rule or policy predetermining awards in arbitration. Arbitrable
matters must be decided not on the basis of a single aspect of the
WRWDOWUDQVDFWLRQVXFKDVPDNLQJWKHÀUVWVKRZLQJRUZULWLQJ
the contract, but rather on careful, deliberate consideration of all
relevant facts and circumstances.
While the question of whether arbitration decisions should
LQFOXGHÀQGLQJVRIIDFWKDVEHHQGLVFXVVHGE\WKH3URIHVVLRQDO
Standards Committee on several occasions over the years, the
Committee has consistently held that any possible educational
EHQHÀWVDUHIDURXWZHLJKHGE\WKHSRVVLELOLW\WKDWDSUROLIHUDWLRQ
RIORFDODVVRFLDWLRQ´DUELWUDWLRQFDVHODZµPLJKWTXLFNO\FRPH
into existence and that hearing panels would come to rely on these
local determinations as the basis for subsequent arbitration awards
instead of looking at each disputed transaction in its totality. It is
for these reasons that the policies and procedures in the Code of
Ethics and Arbitration Manual do not contemplate that written
RURUDOH[SODQDWLRQVRUUDWLRQDOHRU´ÀQGLQJVµZLOOEHSDUWRI
arbitration awards rendered by hearing panels of associations of
REALTORS®.
Consider that the obligations imposed by the Code of Ethics are, in
most instances, clearly articulated in the Articles themselves, in the
6WDQGDUGVRI3UDFWLFHRULQWKHRIÀFLDOFDVHLQWHUSUHWDWLRQV7KXV
it is frequently readily apparent what a REALTOR® must do or say
or, alternatively, must avoid saying or doing to ensure compliance
with the Code. Arbitrable disputes, on the other hand, are very
often (though not always) determined on the basis of procuring
cause, a concept that cannot readily be reduced to a prescribed or
proscribed action or event.
It is not uncommon for a non-prevailing party in arbitration to
UHTXHVWDQH[SODQDWLRQRUMXVWLÀFDWLRQRIDKHDULQJSDQHO·VUDWLRQDOH
IRUPDNLQJDQDZDUG:KLOHWKLVPLJKWEHEHQHÀFLDODWOHDVWLQ
the sense that the non-prevailing party might understand, if not
appreciate, the basis on which the award was based, there has been
an on-going concern that, given the task of comprehensively and
accurately articulating all of the acts and factors that are taken
into account by an arbitration panel in rendering its award, there
might be an understandable (and possibly unavoidable) tendency
to oversimplify or generalize the basis on which an award was
PDGHZLWKWKHUHVXOWLQJH[SODQDWLRQRUUDWLRQDOHRU´ÀQGLQJVµ
whether written or oral, being relied on by the non-prevailing party
DQGOLNHO\E\RWKHUVDV´SUHFHGHQWµWREHLQWURGXFHGDQGUHOLHG
on at future arbitration hearings. The unintended consequence
Code of Ethics and Arbitration Manual
166
(Adopted 11/06)
Appendix V to Part Ten
Arbitration Hearing Checklist
(1) Arbitration of disputes.´'LVSXWHµDQG´DUELWUDEOHPDWWHUµ
refer to those contractual issues and questions, and certain
VSHFLÀFQRQFRQWUDFWXDOLVVXHVDQGTXHVWLRQVRXWOLQHGLQ6WDQGDUG
of Practice 17-4, including entitlement to commissions and
compensation in cooperative transactions between REALTORS® and
between REALTORS® and their clients and customers. (See Part
Ten,6HFWLRQRIWKLV0DQXDO(Revised 11/96)
5HTXHVWVIRUDUELWUDWLRQPXVWEHÀOHGZLWKLQRQHKXQGUHGHLJKW\
(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. Boards may provide mediation even
if arbitration has not been requested provided the mediation is
requested 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.
6XVSHQVLRQRIÀOLQJGHDGOLQHV,IWKH%RDUG·VLQIRUPDOGLVSXWH
resolution processes (e.g., ombudsmen, mediation, etc.) are
invoked or initiated by a complainant (or potential complainant)
with respect to an otherwise potentially arbitrable matter that
becomes the subject of a subsequent arbitration request, the one
KXQGUHGHLJKW\GD\ÀOLQJGHDGOLQHVKDOOEHVXVSHQGHG
EHJLQQLQJZLWKWKHGDWHRIWKHFRPSODLQDQW·VRUSRWHQWLDO
FRPSODLQDQW·VUHTXHVWIRULQIRUPDOGLVSXWHUHVROXWLRQVHUYLFHRU
assistance and shall resume when the informal dispute resolution
procedures are concluded or terminated. Questions about when
informal dispute resolution began or ended will be determined by
WKH%RDUG3UHVLGHQWRUWKH3UHVLGHQW·VGHVLJQHH(Revised 11/00)
(2) Must be consistent with state law. All arbitration hearings
must be conducted in a manner consistent with state law.
Three (3) or more arbitrators necessary. No arbitration
PD\SURFHHGZLWKRXWWKUHHRUPRUHDUELWUDWRUVQRWGLVTXDOLÀHG
pursuant to the provisions of paragraphs (a) through (f) of Part
Seven, Section 27 of this Manual.
(4) Substitute arbitrator. ,IDQDUELWUDWRULVGLVTXDOLÀHGWKH
President (or other individual) shall appoint another member
TXDOLÀHGWRVHUYHDVDQDUELWUDWRU
(5) Duty and privilege to arbitrate. By becoming and remaining
a member, and by signing or having signed the agreement to abide
by the bylaws of the Board, every member, where consistent
with applicable state law, binds himself or herself and agrees to
submit to arbitration (and mediation if required) by the Board all
GLVSXWHVDVGHÀQHGLQPart Ten, Section 44 of this Manual. Refer to
Section 44 to determine the types of arbitration that are mandatory
obligations upon members where not precluded by state law, and
those types that should be offered as a service of the Board but
are not mandatory obligations upon members. (Revised 11/11)
(6) Conformity to state law. Refer to Part Ten,6HFWLRQRI
this Manual for important information concerning the necessity to
know the applicable state statutes or case law governing arbitration
DQGWRFRQIRUPWKH%RDUG·VDUELWUDWLRQSURFHGXUHVWRWKHODZ
Board or State Association legal counsel may advise the Board
in this respect.
(7) Board’s right to decline arbitration. The Board should
be aware of its right to decline to arbitrate a dispute between
members or between members and nonmembers. If either
the Grievance Committee or the arbitration Hearing Panel
determines that the matter should not be arbitrated because of
the amount involved (too little or too much), or because of the
legal complexity of the matter, the arbitration automatically
terminates unless either of the parties appeals the decision
to the Board of Directors within twenty (20) days of the date
RIWKHQRWLFHRIWKH*ULHYDQFH&RPPLWWHH·VRUDUELWUDWLRQ
+HDULQJ3DQHO·VGHFLVLRQXVLQJ)RUP$$SSHDORI
*ULHYDQFH&RPPLWWHH'LVPLVVDORU&ODVVLÀFDWLRQRI$UELWUDWLRQ
Request; however, no additional information may be added or
attached to the form. The Hearing Panel can also dismiss the
arbitration request if the Hearing Panel concludes the matter
is not arbitrable. If the Board declines to arbitrate the matter,
any deposits shall be returned to the parties. If the Board of
Directors decides that arbitration should proceed, the matter is
remanded to the Grievance Committee or arbitration Hearing
Panel for further processing. (Amended 5/97)
,IDQDSSHDOLVÀOHGWKH3UHVLGHQWPD\DSSRLQWDSDQHOWRKHDUWKH
DSSHDOFRPSRVHGRIDWOHDVWÀYH'LUHFWRUVRUDTXRUXPRIWKH
Board of Directors, whichever is less. (Alternatively, the appeal
PD\EHKHDUGE\WKH%RDUG·V([HFXWLYH&RPPLWWHH7KHGHFLVLRQ
RIWKHDSSHDOSDQHORU([HFXWLYH&RPPLWWHHLVÀQDODQGQRW
subject to further review by the Board of Directors. (Revised 11/91)
If an otherwise arbitrable matter is the subject of civil litigation,
arbitration shall not take place unless the litigation is withdrawn
or referred to the Board by the court for arbitration in accordance
with Article 17. In instances where the arbitration is mandatory
DVGHÀQHGLQPart Ten, Section 44 of this Manual) the failure to
arbitrate may result in a charge alleging violation of Article 17.
(8) Duty to arbitrate before State Association. As a member of
a local Board, the Board Member is obligated to arbitrate a dispute
with a member of another Board or a member who is directly a
member of the State Association. (State Association bylaws have
provisions of professional standards procedures as they relate to
ethics and arbitration proceedings.)
(9) Interstate arbitration. The procedures described in
Part Eleven of this Manual may be used for arbitrating disputes
between REALTOR® members of Boards located in different states,
VXEMHFWWRWKHSDUWLHV·YROXQWDU\DJUHHPHQWLQDGYDQFHWRWKHSODFH
date, and time established by the arbitration Hearing Panel, and
agreement to pay all costs of the arbitration as may be directed
167
Code of Ethics and Arbitration Manual
Arbitration
by the panel, and further subject to the applicable law of the state
in which the arbitration is held.
(10) Manner of invoking arbitration. Any Board Member,
client, or customer authorized to do so may request arbitration
by the Board. The request shall be in writing, indicating the
nature of the dispute and the amount in dispute, and must be
DFFRPSDQLHGE\WKHUHTXLUHGDUELWUDWLRQÀOLQJIHHGHSRVLW7KH
request may be on a Board form or other form permitted by law.
7KH6HFUHWDU\RU([HFXWLYH2IÀFHUVKDOOUHIHUWKHUHTXHVWWRWKH
*ULHYDQFH&RPPLWWHHIRUGHWHUPLQDWLRQZLWKLQWKHWLPHVSHFLÀHG
E\WKH%RDUG·VSURIHVVLRQDOVWDQGDUGVSURFHGXUHVDVWRZKHWKHU
the matter is properly subject to arbitration, and as to whether
the circumstances impose a mandatory obligation to arbitrate
or arbitration is voluntary (to be conducted only if all parties
voluntarily agree to arbitrate and be bound by the decision).
(11) Dismissal of request for arbitration. If the request for
arbitration is dismissed by the Grievance Committee or the
Hearing Panel, the complainant (requester) shall be informed
of the dismissal and the reasons for the dismissal, and may
DSSHDOWRWKH%RDUGRI'LUHFWRUVZLWKLQWKHWLPHVSHFLÀHGLQWKH
%RDUG·VSURFHGXUHVXVLQJ)RUP$$SSHDORI*ULHYDQFH
&RPPLWWHH'LVPLVVDORU&ODVVLÀFDWLRQRI$UELWUDWLRQ5HTXHVW
The arbitration request and any attachments to the request may
QRWEHUHYLVHGPRGLÀHGRUVXSSOHPHQWHG7KHFRPSODLQDQWPD\
however, explain in writing why the complainant disagrees with
WKH*ULHYDQFH&RPPLWWHH·VFRQFOXVLRQWKDWWKHUHTXHVWVKRXOGEH
dismissed. With the appeal, the Directors shall consider only the
same information that was available to the Grievance Committee or
Hearing Panel at the time of dismissal of the request for arbitration.
The complainant and respondent do not have the right to be present
DWWKH'LUHFWRUV·PHHWLQJ(Revised 5/07)
(12) Function of Grievance Committee. The function of the
Grievance Committee is to make only such preliminary review
as is required to determine proper disposition of the request for
arbitration. In reviewing a request for arbitration, the purpose of the
review is to determine (1) if the requester is authorized to invoke
DUELWUDWLRQE\WKHSURIHVVLRQDOVWDQGDUGVSURFHGXUHVLQWKH%RDUG·V
E\ODZVLIWKHUHTXHVWHGDUELWUDWLRQLVPDQGDWHGE\WKH%RDUG·V
E\ODZVRULVYROXQWDU\RQWKHSDUWRIWKHSDUWLHVLIWKHGLVSXWH
described is an arbitrable matter; and (4) if the matter, either as to
monetary amount (too small or too large) or as to legal complexity, is
such that the Board should decline to arbitrate the matter and
release the Board Members from their obligation to arbitrate, and
thus free the members to seek other recourse to resolve the dispute.
Director on Grievance Committee. A member of the
Grievance Committee who is a member of the Board of Directors
may not sit as a Director during an appeal to the Board of Directors
RIWKH*ULHYDQFH&RPPLWWHH·VGHFLVLRQWRGLVPLVVDUHTXHVWIRU
arbitration, and may not vote on such appeal.
(14) If matter referred for arbitration. If the request for
arbitration is referred for hearing, the Chairperson of the Grievance
&RPPLWWHHVKDOOUHIHULWWRWKH6HFUHWDU\RU([HFXWLYH2IÀFHU
with instructions to arrange an arbitration hearing. The Secretary
Code of Ethics and Arbitration Manual
168
VKDOOQRWLI\WKHRWKHUSDUW\ZLWKLQWKHWLPHVSHFLÀHGLQWKH%RDUG·V
procedures, except that a reasonable delay does not invalidate
the procedure. The Secretary shall mail a copy of the complaint
to the respondent and provide forms for reply by the respondent,
with directions to complete the forms, including the “Arbitration
$JUHHPHQWµDQGUHWXUQWKHPWRWKH6HFUHWDU\ZLWKLQWKHWLPH
VSHFLÀHGLQWKH%RDUG·VSURFHGXUHV
(15) Obligation to arbitrate. The Board Member is obligated to
arbitrate under certain circumstances if mandatory arbitration is
permitted by state law. The member, by becoming and remaining
a member, has entered into a prior agreement to arbitrate and
acknowledges this prior agreement by signing an agreement to
arbitrate and abide by the award in each case. If the applicable state
law does not permit prior agreements to arbitrate, then arbitration
may be voluntarily agreed to by the parties after the dispute arises.
(16) Content of agreement to arbitrate. The Arbitration
Agreement shall acknowledge the membership duty voluntarily
accepted when the party sought and received membership in the
Board, and shall specify that the party does now, in accordance
with the prior agreement to arbitrate, acknowledge and enter into
such agreement and agree to abide by the award. The Arbitration
Agreement shall be accompanied by a concise statement of the
PDWWHULQGLVSXWH(DFKSDUW\PXVWVLJQDQGÀOHWKH$JUHHPHQW
ZLWKWKH6HFUHWDU\RU([HFXWLYH2IÀFHUDORQJZLWKDQ\UHTXLUHG
deposit. The deposit may be returned to the recipient of the
arbitration award. (Amended 11/95)
(17) Refusal of respondent to appear and/or sign the
Arbitration Agreement. The circumstances under which Member
Boards may conduct arbitration will vary based on state arbitration
statutes and case law. In some states, arbitration may be conducted
only if both parties sign the Arbitration Agreements, deposit the
required amounts, and appear and take part in the hearing. In other
states, arbitration may proceed in the absence of signed Arbitration
Agreements and deposits if the parties appear and take part in the
hearing. In still other states, arbitration may take place and a valid
award may be rendered even if the respondent refuses to sign the
Arbitration Agreement and refuses to take part in the hearing.
Refer to Part Ten, Section 48(b) of this Manual for important
information on the need to determine whether state law permits
arbitration to proceed if the respondent refuses to appear at the
hearing and/or refuses to sign the Arbitration Agreement.
(18) Reply from respondent. 1RVRRQHUWKDQÀIWHHQ
days nor later than twenty-one (21) days after mailing notice
of hearing and a copy of the complaint to the respondent,
WKH6HFUHWDU\RU([HFXWLYH2IÀFHUVKDOOPDLODFRS\RIDQ\
reply by the respondent to the complainant. A Board may
ask for a response to an arbitration request but may not
require one.
(19) Opportunity for challenge of possible arbitrators. When
WKH6HFUHWDU\RU([HFXWLYH2IÀFHUPDLOVDFRS\RIWKHUHSO\LI
any, from the respondent, the Secretary shall also mail to the parties
a list of members of the Professional Standards Committee from
ZKRPDQDUELWUDWLRQ+HDULQJ3DQHORIDWOHDVWWKUHHPHPEHUV
Arbitration
will be appointed, and advise of their right to challenge for cause
WKHTXDOLÀFDWLRQRIDQ\PHPEHUWRVHUYHDVDQDUELWUDWRULIVXFKOLVW
KDVQRWDOUHDG\EHHQPDLOHGWRWKHSDUWLHVZLWKQRWLÀFDWLRQRIWKH
*ULHYDQFH&RPPLWWHH·VUHIHUUDOIRUKHDULQJ$Q\GLVTXDOLÀFDWLRQ
PXVWEHÀOHGZLWKLQWHQGD\VIURPWKHGDWHWKHOLVWRIQDPHV
ZDVPDLOHGWRWKHSDUWLHV:LWKLQÀIWHHQGD\VIURPWKHGDWH
the list of names is mailed to the parties, the arbitration Hearing
Panel members shall be appointed by the Professional Standards
Committee Chairperson from the members of the Professional
Standards Committee who are not successfully challenged by
the complainant or respondent for cause. A majority must be
REALTORS®, and if a REALTOR-ASSOCIATE® or REALTOR® other
than a principal has invoked the arbitration through the REALTOR®
SULQFLSDORULVDIÀOLDWHGZLWKWKHUHVSRQGHQWDQGKDVDYHVWHG
interest in the outcome of the proceeding, one (1) of the arbitrators
shall be a REALTOR-ASSOCIATE® or REALTOR® other than a principal.
The Chairperson shall also select one (1) of the panel members to
serve as Chairperson of the Hearing Panel. (Revised 11/98)
will receive and consider, including the evidence of accountants
and other experts; and (4) interpretations of Board bylaw
provisions. Each party is responsible for the expenses of his/
her expert witnesses and legal counsel. Arbitration hearings
VKRXOGEHFRQGXFWHGLQDFFRUGDQFHZLWKWKH&KDLUSHUVRQ·V
Procedural Guide, Part Ten, Section 51 and Part Twelve of this
Manual.
If the arbitration involves issues related to areas of the real estate
business such as commercial, investment, industrial, etc., and there
LVQRWDVXIÀFLHQWQXPEHURITXDOLÀHGSUDFWLWLRQHUVRQWKH%RDUG·V
Professional Standards Committee to constitute a representative
peer panel, the President shall appoint other Board Members
TXDOLÀHGLQWKDWÀHOGWRVHUYHRQWKHSDQHO,IRWKHUTXDOLÀHG
PHPEHUVFDQQRWEHLGHQWLÀHGWKDWIDFWLVUHSRUWHGE\WKH3UHVLGHQW
to the Board of Directors, and if the Directors concur, the matter
is referred to the State Association as outlined in Part Fourteen
RIWKLV0DQXDO,IWKH6WDWH$VVRFLDWLRQFDQQRWLPSDQHODTXDOLÀHG
peer panel, the complainant and respondent are released from their
obligation to arbitrate. (Revised 11/98)
(25) Opening statement by parties or attorneys. Each party
RUWKHSDUW\·VDWWRUQH\DWODZVKDOOEHJLYHQDQRSSRUWXQLW\IRUDQ
RSHQLQJVWDWHPHQWZKLFKVKDOOEULHÁ\RXWOLQHWKHEDVLFSUHPLVH
RIWKHSDUW\·VSRVLWLRQLQUHVSHFWRIWKHPDWWHUWREHDUELWUDWHG
(20) Date, time, and place of hearing. The arbitration Hearing
Panel will establish the date, time, and place for the arbitration
hearing. Notice shall be given at least twenty-one (21) days prior
to the date of hearing. (However, appearance by a party at an
arbitration hearing waives the right to such notice.) The arbitration
request and response, if any, shall be provided to Hearing Panel
members prior to the hearing. Such time period shall be ________
(as determined by the Board of Directors) and shall be adhered to
for all hearings. (Revised 11/91)
:LWQHVVHVVZRUQRUDIÀUPHG Prior to testifying, all parties
DQGZLWQHVVHVVKDOOEHVZRUQRUDIÀUPHGE\WKH&KDLUSHUVRQDV
GHVFULEHGLQWKH&KDLUSHUVRQ·V3URFHGXUDO*XLGHLQPart Twelve
of this Manual.
(24) Witnesses present only as necessary to hearing. Witnesses
shall be present during the arbitration hearing only as necessary to
UHFHLYHLQVWUXFWLRQVWREHVZRUQRUDIÀUPHGWRJLYHWHVWLPRQ\
and to respond to cross-examination. Witnesses should be excused
during other parts of the hearing.
(26) Testimony of character or general business reputation
of party. No testimony may be admitted related to the character
or general business reputation of any party unless such testimony
has a direct bearing on the matter being heard.
(27) Testimony. The complainant may give testimony and
present evidence as deemed appropriate to the arbitration by the
+HDULQJ3DQHO)ROORZLQJSUHVHQWDWLRQE\WKHFRPSODLQDQWWKH
respondent shall testify. The parties shall present to the arbitrators
their oral testimony and such written statements and proof as the
DUELWUDWRUVPD\UHTXLUH3URRIPD\EHE\DIÀGDYLWRURWKHUIRUP
acceptable to the arbitrators.
(28) Right to cross-examine. At the conclusion of testimony
by each party, or by a witness, the opposing party and/or his/her
counsel may cross-examine the party or witness.
(21) Written statements and proof. In addition to the request for
arbitration and the response to the arbitration request, the parties
to the arbitration shall, upon notice of the hearing, present to the
arbitrators, in writing, such statements and proof as they deem
necessary to support their claims. The Hearing Panel may require
VWDWHPHQWVWREHYHULÀHGE\DIÀGDYLWDQGRUWKDWWKHDFFXUDF\RU
DXWKHQWLFLW\RIGRFXPHQWVRUSDSHUVEHYHULÀHGE\DIÀGDYLW,Q
addition to written statements and proof provided to the arbitrators
prior to the hearing, the Hearing Panel may, at the hearing, receive
any further written statements, documents, or other papers, and shall
hear oral testimony as described in Part Ten, Section 51 of this
Manual.
(22) Arbitrators to regulate hearing. The Hearing Panel
determines (1) date, time, and place of hearing; (2) what
DSSHDUDQFHVDUHWREHPDGHE\WKHSDUWLHVZKDWHYLGHQFHLW
169
(29) Arbitrators’ examination of parties or witnesses. Upon
completion of testimony and cross-examination of any party or
witness, the arbitrators may examine the party or witness.
Summary of each party. Upon completion of all testimony,
HDFKSDUW\RUSDUW\·VDWWRUQH\PD\VXPPDUL]HWKHSURFHHGLQJVIRU
WKH+HDULQJ3DQHO7KHFRPSODLQDQW·VVXPPDU\VKDOOEHSUHVHQWHG
ÀUVWDQGWKHUHVSRQGHQW·VVXPPDU\IROORZV
Parties excused for executive session and decision by
arbitrators. After the summary by each party, the parties shall
be excused from the hearing room, and the arbitrators shall, in
executive session, render their decision. The arbitrators shall be
guided in the evaluation of all the evidence by the Arbitration
Guidelines in Part Ten, Appendix II of this Manual.
Code of Ethics and Arbitration Manual
Arbitration
Parties’ settlement of the issue at any time. The parties
to the arbitration may settle the issue between them at any time. If
WKH\VHWWOHWKH\VKDOODGYLVHWKH6HFUHWDU\RU([HFXWLYH2IÀFHU
DQGWKHDUELWUDWLRQVKDOOEHWHUPLQDWHGDQGVRUHFRUGHGLQWKHÀOH
The award. The award shall be made as soon as possible
after the evidence is presented. The award shall be in writing and
signed by the arbitrators or a majority of them, and shall state
only the amount of the award, and when so served on each of the
parties shall not be subject to review or appeal. Notwithstanding
the foregoing, a party may appeal to the Board of Directors only
on the basis of alleged irregularity(ies) of the proceeding as
may have deprived the party of fundamental due process. The
Directors shall not receive or review evidence offered as to the
merits of the award, except as such evidence may bear upon a
claim of deprivation of due process. After the award has been
served upon each of the parties, they have twenty (20) days to
request procedural review of the arbitration hearing by the Board
of Directors. If no such review is requested, the award becomes
ÀQDODQGELQGLQJIROORZLQJWKHWZHQW\GD\SHULRG+RZHYHU
LISURFHGXUDOUHYLHZLVUHTXHVWHGWKHDZDUGLVQRWFRQVLGHUHGÀQDO
and binding until after the Board of Directors has concluded that
the hearing had been conducted in a manner consistent with the
%RDUG·VSURFHGXUHVDQGWKHSDUWLHVKDGEHHQDIIRUGHGGXHSURFHVV
(See Part Ten, 6HFWLRQVDQGRIWKLV0DQXDO(Revised 11/91)
Escrowing of arbitration awards. The Board may adopt
procedures that require the nonprevailing party to either pay the
DZDUGRUGHSRVLWWKHDPRXQWZLWKWKH%RDUGZLWKLQDVSHFLÀHG
period of time pending review of the arbitration procedure by the
Board of Directors and/or a court of competent jurisdiction. Please
refer to Part Ten,6HFWLRQFIRIWKLV0DQXDO(Adopted
11/87)
Request for procedural review. The appeal may be
heard by a panel of Directors appointed by the President or
KHDUGE\WKH%RDUG·V([HFXWLYH&RPPLWWHH7KHUHTXHVWIRU
procedural review shall be reviewed by the Board President or the
3UHVLGHQW·VGHVLJQHHRQO\IRUWKHSXUSRVHRIGHWHUPLQLQJZKHWKHU
the request states any legitimate basis for consideration by the
%RDUGRI'LUHFWRUV$Q\DSSHDOSDQHOPXVWEHFRPSULVHGRIÀYH
(5) Directors or a quorum of the Board of Directors, whichever is
less. The decision of the appeal panel (or Executive Committee) is
ÀQDODQGELQGLQJDQGLVQRWVXEMHFWWRIXUWKHUUHYLHZE\WKH%RDUG
of Directors. All requests for procedural review received by the
Board must be considered by the Board of Directors and only the
bases raised in the written request for procedural review may be
raised during the review before the Directors. (Amended 11/94)
If a REALTOR® refuses to arbitrate. If a REALTOR® is
charged in an ethics complaint of improperly refusing to submit
a dispute to arbitration (or mediation if required by a Board) as
VSHFLÀHGLQPart Ten, Section 49 of this Manual, the complaint
shall not be referred to the Grievance Committee or a Hearing
Panel, but shall be brought before the Board of Directors at the
next regularly scheduled meeting or at a special meeting called
by the President for that purpose. The procedures for notice, time
of notice, and hearing prescribed for matters before a Hearing
Code of Ethics and Arbitration Manual
170
Panel shall apply. The sole question of fact for the Directors
to decide will be whether the respondent failed to submit an
DUELWUDEOHPDWWHUDVGHÀQHGLQPart Ten,6HFWLRQVDQGRI
this Manual) to arbitration or mediation in violation of Article
17. Upon determination that the member has refused to arbitrate
or mediate a properly arbitrable matter, the Directors may direct
the imposition of appropriate sanction and should, if they have
reason to believe that the imposition of sanction will become the
basis for litigation and a claim for damages consequent to such
sanction, delay the effective date of implementing the sanction
to a date following receipt by the Board of a judicial decision in
DSHWLWLRQIRUGHFODUDWRU\UHOLHIÀOHGE\WKH%RDUGWRFRQÀUPWKH
propriety of its action. (Amended 11/11)
Enforcement of award. If a party refuses to abide by an
award in arbitration, such refusal should not be referred to the
Grievance Committee as a violation of the Code of Ethics unless
LWUHÁHFWVDQHVWDEOLVKHGSDWWHUQRUSUDFWLFHRIQRQFRPSOLDQFHZLWK
the commitment to arbitrate. The award recipient should be advised
by the Board to seek judicial enforcement of the award by a local
court of competent jurisdiction and to request reimbursement
of legal fees incurred in seeking enforcement. (Refer to Part
Ten, Section 56 of this Manual.) If the court does not award
reimbursement of legal fees, the Board of Directors may, at its
discretion, reimburse the award recipient for legal fees incurred in
seeking enforcement. (See Part Ten, Appendix III of this Manual
for the rationale of judicial enforcement of awards in arbitration.)
Arbitration
Administrative Time Frames—Arbitration Proceedings
Situation
Time Table
Grievance
5HTXHVWÀOHG
5HVSRQVHUHTXLUHGRIGD\VWRVXEPLW
GD\V
2SWLRQDOGD\VIURPPDLOLQJUHTXHVWWRUHVSRQGHQWLI
response solicited
20 days from mailing dismissal notice
GD\VIURPUHFHLSWRIGHFLVLRQ
Appeal dismissal to Directors
$SSHDORIPDQGDWRU\YVYROXQWDU\FODVVLÀFDWLRQ
Hearing
1RWLÀFDWLRQWRUHVSRQGHQWRIUHTXHVW
Response required
Challenge forms
Panel named
Hearing notice*
Arbitration case to panel
Notice of witnesses and attorney
GD\VIURPUHFHLSWRI*ULHYDQFH&RPPLWWHH·VLQVWUXFWLRQ
15 days from mailing request to respondent
10 days to challenge from date forms mailed
15 days from mailing challenge forms
21 days before hearing
Board option
15 days before hearing to Board and other party
Procedural Review
5HTXHVWÀOHG
Preliminary review
Amendment received
Review held by Directors
GD\VIURPPDLOLQJDZDUG
Optional number of days
Within 10 days of notice
Next/special meeting giving not less than 10 days notice
(Revised 11/11)
* 1RWLFHRIKHDULQJVKRXOGEHPDLOHGWRWKHSDUWLHVZLWKWKH2XWOLQHRI3URFHGXUH)RUP$RU)RUP$DDVDSSURSULDWHDQGWKH$UELWUDWLRQ
Guidelines (including the Worksheet contained in Appendix II to Part Ten).
171
Code of Ethics and Arbitration Manual
Appendix VI to Part Ten
Mediation as a Service of Member Boards
Although no party to an arbitrable matter can be required to
submit to mediation (unless REALTORS® [principals] are required
by their Board to mediate otherwise arbitrable disputes pursuant
to Article 17) and mediation cannot and is not intended to be
a substitute for the arbitration procedures described elsewhere
in this Manual, mediation can be a useful tool in resolving the
FRQÁLFWVWKDWDULVHLQYROYLQJ%RDUG0HPEHUVDQGWKHLUFOLHQWV
and customers. Mediation must be available in instances where
arbitration would be provided under Part Ten, Section 44 of
this Manual and a Board can require REALTORS® (principals) to
mediate otherwise arbitrable disputes pursuant to Article 17.
Mediation can resolve disputes, promote amicable resolutions,
and reduce the number of cases requiring the more formal and
complex arbitration procedures of the Board, thus reducing
the time and effort required of Board Members serving on the
Professional Standards Committee. (Revised 11/11)
6HOHFWLRQRI%RDUG0HGLDWLRQ2IÀFHU
Conducting successful mediation procedures requires tact,
diplomacy, and a sense of equity. Careful consideration should
be given by the Board President (or the Board of Directors of
WKH%RDUGLQVHOHFWLQJWKH%RDUG·V0HGLDWLRQ2IÀFHU0DQ\
%RDUGVZLOOÀQGWKDWRQH0HGLDWLRQ2IÀFHUZLOOEHVXIÀFLHQW
However, in large Boards, consideration can be given to
appointing a standing panel of two, three, or more Mediation
2IÀFHUVGHSHQGLQJXSRQWKHQXPEHURIUHTXHVWVIRUDUELWUDWLRQ
QRUPDOO\ÀOHGLQWKHFRXUVHRID\HDU
$%RDUG0HGLDWLRQ2IÀFHUVKRXOGEHDSSRLQWHGIRUDWHUPRI
at least one (1) year. Consideration can be given by the local
%RDUGWRPDNLQJWKHDSSRLQWPHQWIRUWZRRUHYHQWKUHH
years. It is strongly recommended that any individual serving
DVD%RDUG0HGLDWLRQ2IÀFHUKDYHH[WHQVLYHSULRUH[SHULHQFH
RQWKH%RDUG·V*ULHYDQFH&RPPLWWHH3URIHVVLRQDO6WDQGDUGV
&RPPLWWHHDQGRU%RDUGRI'LUHFWRUV7KH0HGLDWLRQ2IÀFHU
VKRXOGEHWKRURXJKO\FRQYHUVDQWZLWKWKH%RDUG·VDUELWUDWLRQ
procedures as well as with the real estate rules and regulations
RIWKHVWDWH,WLVUHFRPPHQGHGWKDWWKH0HGLDWLRQ2IÀFHUQRW
VHUYHFRQFXUUHQWO\DVHLWKHUDQRIÀFHURUGLUHFWRURIWKH%RDUG
or as a member of the Grievance Committee, or as a member of
WKH3URIHVVLRQDO6WDQGDUGV&RPPLWWHH,I0HGLDWLRQ2IÀFHUVDUH
members of the Grievance Committee, they shall not participate
in the consideration of requests for arbitration or ethics
complaints arising out of the same facts and circumstances
giving rise to a matter they attempted to mediate. If Mediation
2IÀFHUVDUHPHPEHUVRIWKH3URIHVVLRQDO6WDQGDUGV&RPPLWWHH
they shall not serve on an arbitration Hearing Panel in cases
where they had initially attempted to resolve the dispute prior
to an arbitration hearing, or on an ethics Hearing Panel in cases
where an ethics complaint arises out of the same facts and
circumstances giving rise to a matter they attempted to mediate.
7KH0HGLDWLRQ2IÀFHUVKRXOGEHVRPHRQHZLGHO\UHVSHFWHGIRU
fairness, experience, and impartiality. Only to the degree that
DOOSDUWLHVWRWKHPHGLDWLRQFDQEHFRQÀGHQWWKDWWKHPHGLDWRU
is impartial will mediation procedures be successful. By having
Code of Ethics and Arbitration Manual
172
PRUHWKDQRQH0HGLDWLRQ2IÀFHUDVVLJQPHQWVFDQEHPDGHWR
utilize a particular individual whose experience, abilities, and
relationship renders him/her most appropriate for the particular
assignment. (Revised 11/91)
Mediation is Mandatory or Voluntary as Determined by
the Board:
It must be understood by all parties that participation in
mediation procedures is entirely voluntary unless REALTORS®
(principals) are required by their Board to mediate otherwise
arbitrable disputes pursuant to Article 17. If the Board
or Association does not require REALTORS® (principals) to
mediate otherwise arbitrable matters, the parties should be
offered the opportunity and encouraged to participate in the
mediation process in good faith, and, further, encouraged
to abide by the determination. The parties to mediation
should be aware that they may withdraw from the process at any
point prior to reaching an agreement. Any offers of settlement
that were not accepted or any suggested resolution proposed
E\WKH0HGLDWLRQ2IÀFHUWKDWZDVQRWDFFHSWHGZLOOQRWEH
introduced as evidence nor considered in any manner should
WKHPDWWHUUHTXLUHDUELWUDWLRQE\WKH%RDUG·V3URIHVVLRQDO
Standards Committee. However, if the parties agree to a
settlement of the dispute, and the settlement has been reduced
to writing and has been signed by all of the parties, the matter
is deemed resolved and cannot be the subject of a subsequent
arbitration hearing. In the event either of the parties later fails
to abide by the terms of the settlement, the matter may not be
arbitrated; instead, the other party should be encouraged to
have the settlement agreement judicially enforced by a court
of competent jurisdiction. (A sample settlement agreement is
LQFOXGHGDV)RUP$LQPart Thirteen of this Manual.)
(Revised 5/12)
Need for Adequate Notice:
In mediation the need for due process remains. Generally, there
will be no need for the parties to be represented by legal counsel
nor for the Board to have legal counsel present at a mediation
proceeding. However, since mediation is an attempt to bring the
disputing parties together in an informal setting to resolve their
differences, every effort should be made to ensure that the parties
are provided with adequate prior notice (at least ten [10] days) and
that the time and location of the proceeding is mutually convenient
to all involved. However, this requirement shall not preclude
parties to a dispute waiving such notice and agreeing to mediate at
any time agreed by all parties. (Revised 5/12)
Initiation of Mediation Proceedings:
7KH6HFUHWDU\RU([HFXWLYH2IÀFHUXSRQUHFHLSWRIDUHTXHVW
for arbitration, will advise all parties of their mediation
obligations and options to participate in mediation prior to
review of the arbitration request by the Grievance Committee. If
mediation is voluntary and the parties agree, the matter will be
UHIHUUHGWRWKH0HGLDWLRQ2IÀFHUZKRZLOODUUDQJHDPXWXDOO\
convenient time and location for mediation. When mediation
Arbitration
is voluntary and the mediation attempt is unsuccessful, or
if either of the parties wishes to discontinue the mediation
process for any reason, then mediation will be terminated and
the request for arbitration will be referred to the Grievance
Committee for review. Regardless of whether mediation is
voluntary or mandatory, if either party requests that mediation
be deferred until after the arbitration request can be reviewed
by the Grievance Committee, the arbitration request will be
UHIHUUHGWRWKH*ULHYDQFH&RPPLWWHHIRUWKDWFRPPLWWHH·V
determination whether (a) an arbitrable issue exists, and (b)
whether arbitration would be voluntary or mandatory. Where
any party initially declines to mediate pending the Grievance
&RPPLWWHH·VUHYLHZRIWKHDUELWUDWLRQUHTXHVWWKHSDUWLHVVKDOO
in all instances again be offered the opportunity to mediate
IROORZLQJWKH*ULHYDQFH&RPPLWWHH·VUHYLHZ(Revised 5/12)
NOTE: When the Board adopts the mediation procedures
described in this Manual or develops similar procedures, they
VKRXOGEHLQFOXGHGLQWKH%RDUG·VCode of Ethics and Arbitration
Manual in whole or by reference. (Revised 11/96)
Boards may also offer disputing parties an opportunity to mediate
SULRUWRDQDUELWUDWLRQUHTXHVWEHLQJÀOHG(Adopted 11/11)
NOTE: If a Board requires REALTORS® (principals) to mediate
otherwise arbitrable disputes, there can be no allegation of
a violation of Article 17 if a party refuses to mediate unless an
DUELWUDWLRQUHTXHVWKDVEHHQÀOHGWKH*ULHYDQFH&RPPLWWHHKDV
referred the arbitration request for hearing on a mandatory basis, and
the party then refuses to mediate. (Adopted 11/11)
Conduct of Mediation Procedures:
,IIRUDQ\UHDVRQDQ\RIWKHSDUWLHVRUWKH0HGLDWLRQ2IÀFHULV
unable to participate on the date agreed, the procedure should be
rescheduled to the earliest mutually acceptable date. Witnesses,
if any, should be kept to a minimum. (Revised 11/03)
Realizing that a dispute already exists between the parties, the
0HGLDWLRQ2IÀFHUVKRXOGPDNHHYHU\HIIRUWWRHQFRXUDJHD
conciliatory atmosphere while ensuring a full discussion of
all pertinent facts. The complainant and respondent should be
HQFRXUDJHGWRDSSUHFLDWHHDFKRWKHU·VSRVLWLRQLQWKHPDWWHUDQG
to effect a solution that will eliminate the need for arbitration
E\WKH%RDUG·V3URIHVVLRQDO6WDQGDUGV&RPPLWWHH7KHSDUWLHV
can agree to a mutual resolution of the matter at any time during
the mediation procedure. If, following a thorough discussion of
all the pertinent facts, the parties are still unable to resolve the
PDWWHUWKH0HGLDWLRQ2IÀFHUPD\DWWKH0HGLDWLRQ2IÀFHU·V
discretion, then make a recommendation. Any recommendation
for resolution can be oral or in writing and will be provided to
both parties at the conclusion of the mediation procedure. The
SDUWLHVFDQDJUHHWRWKH0HGLDWLRQ2IÀFHU·VSURSRVHGUHVROXWLRQ
at that time. If neither of the parties desires to give additional
FRQVLGHUDWLRQWRWKH0HGLDWLRQ2IÀFHU·VUHVROXWLRQERWKSDUWLHV
ZLOOEHJLYHQDVSHFLÀHGSHULRGRIWLPHQRWWRH[FHHGIRUW\HLJKW
(48) hours, to consider the resolution and to advise the Mediation
2IÀFHURIWKHLUDFFHSWDQFHRUUHMHFWLRQRILW,IHLWKHURIWKHSDUWLHV
rejects the proposed resolution, the mediation procedure will be
deemed concluded and the matter will proceed to arbitration.
$Q\SDUW\ZKRGRHVQRWUHVSRQGWRWKH0HGLDWLRQ2IÀFHUZLWKLQ
seventy-two (72) hours will be deemed to have rejected the
suggested solution and arbitration will proceed. (Revised 11/96)
Code of Ethics and Arbitration Manual
Arbitration
Mediation Procedures
(1) Arbitration request received by the Board*
(2) Association Executive will advise parties of their mediation obligations and options to participate in mediation prior to review of
the arbitration request by the Grievance Committee.
Send to complainant:
Request for Mediation form — Boards may prefer to complete this step by telephone rather than mail
Agreement to Mediate form
(Set time frame for completed and signed forms to be returned to the Board)
8SRQUHFHLSWRIFRPSOHWHGIRUPVIURPFRPSODLQDQWsend to respondent:
1RWLFHRI5HTXHVWIRU0HGLDWLRQIRUPZLWKDWWDFKHGFRS\RIFRPSODLQDQW·VFRPSOHWHG5HTXHVWIRU0HGLDWLRQIRUP³
Boards may prefer to complete this step by telephone rather than mail
Agreement to Mediate form
0HGLDWLRQ2IÀFHU6HOHFWLRQIRUPVKRXOGEHVHQWWRERWKFRPSODLQDQWDQGUHVSRQGHQW
(Set time frame for completed and signed forms to be returned to the Board)
8SRQUHFHLSWRIDOOFRPSOHWHGIRUPVWKH%RDUGPD\DVVLJQDQ\0HGLDWRUQRWFKDOOHQJHGWRVHUYHDVWKH0HGLDWLRQ2IÀFHU
Send to both complainant and respondent:
1RWLFHRI6HOHFWLRQRI0HGLDWLRQ2IÀFHUIRUP
7KH0HGLDWLRQ2IÀFHUVKRXOGFRQWDFWWKHFRPSODLQDQWDQGUHVSRQGHQWGLUHFWO\WRVHWDQDFFHSWDEOHWLPHDQGORFDWLRQIRUWKH
mediation conference.
Send to both complainant and respondent:
0HGLDWLRQ2IÀFHUIRUPOHWWHUFRQÀUPLQJGDWHWLPHDQGORFDWLRQRIFRQIHUHQFH
(Adequate prior notice should be given parties for scheduling mediation conference—ten [10] days suggested)
(6) (a) If the mediation conference successfully resolves the dispute:
2ULJLQDOVLJQHG0HGLDWLRQ5HVROXWLRQ$JUHHPHQW)RUP$VKRXOGEHIRUZDUGHGWRWKH%RDUGE\WKH0HGLDWLRQ2IÀFHU
7KH5HVROXWLRQ$JUHHPHQWVKRXOGEHNHSWLQWKHÀOHZLWKDOOSHUWLQHQWUHFRUGVSHUWDLQLQJWRWKDWFDVH
Both the complainant and respondent should receive a copy of the Resolution Agreement.
(b) If the mediation conference does not successfully resolve the dispute:
,IWKHSDUWLHVDUHXQDEOHWRUHVROYHWKHLUGLVSXWHWKH0HGLDWLRQ2IÀFHUPD\PDNHWKHGHWHUPLQDWLRQWKDWWKHSDUWLHVKDYHUHDFKHG
an impasse, and may recommend an equitable solution. The recommendation for resolution can be oral or in writing, and may
be provided to both parties at the conclusion of the mediation procedure. (Set time frame for response from parties — not to
exceed forty-eight [48] hours)
$Q\SDUW\ZKRGRHVQRWUHVSRQGWRWKH0HGLDWLRQ2IÀFHUZLWKLQVHYHQW\WZRKRXUVZLOOEHFRQVLGHUHGWRKDYHUHMHFWHGWKH
suggested solution.
0HGLDWLRQ2IÀFHUVKRXOGDGYLVHWKH%RDUGWKDWWKHPHGLDWLRQFRQIHUHQFHKDVEHHQWHUPLQDWHGZLWKRXWUHVROXWLRQRIWKHGLVSXWH
0HGLDWLRQ2IÀFHUZLOOVHQG7HUPLQDWLRQRI0HGLDWLRQ&RQIHUHQFHIRUPWR%RDUG
5HTXHVWIRU$UELWUDWLRQZLOOEHIRUZDUGHGWRWKH%RDUG·V*ULHYDQFH&RPPLWWHHIRUUHYLHZ
%RDUGVPD\DOVRRIIHUGLVSXWLQJSDUWLHVDQRSSRUWXQLW\WRPHGLDWHSULRUWRDQDUELWUDWLRQUHTXHVWEHLQJÀOHG
(Amended 11/12)
Code of Ethics and Arbitration Manual
174
Arbitration
_________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Request for Mediation
In the matter of _____________________________________________ vs. ____________________________________________
Complainant
Respondent
I am requesting mediation with the above-named disputant. There is due, unpaid, and owing to me (or I retain) from the abovenamed person the sum of $_________________. My claim is predicated upon the statement attached, marked Exhibit I and incorporated
by reference into this application.
__________________________________________________
__________________________________________________
Signature of REALTOR® Principal/Authorized Designee
Date
__________________________________________________
__________________________________________________
Type/Print Name
Phone
__________________________________________________________________________________________________________
Address
City
State
Zip
Form Optional: This may be accomplished by telephone.
(Amended 11/12)
_________________________________________________________________________________________________________
175
Code of Ethics and Arbitration Manual
_________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Notice of Request for Mediation
In the matter of _____________________________________________ vs. ____________________________________________
Complainant
Respondent
A request for mediation involving the above-named case prior to a hearing of this matter by the Professional Standards
Committee of the Board has been received. A copy of the dispute is enclosed. If you wish to participate in the mediation process
DWWKLVWLPHSOHDVHFRPSOHWHWKH0HGLDWLRQ$JUHHPHQWIRUPDQGUHWXUQLWWRWKH%RDUGRIÀFHDWWKHDGGUHVVVKRZQRQWKLVIRUPE\
__________________________________________. The Agreement must be signed and dated by the REALTOR® principal or his/her
Date
authorized designee. If no response is received from you by the appointed date, the case shall be referred to the Grievance Committee
of the Board for determination at its next scheduled meeting.
__________________________________________________
__________________________________________________
Signature of Secretary
Date
Form Optional: This may be accomplished by telephone.
(Amended 11/12)
Code of Ethics and Arbitration Manual
176
0HGLDWLRQ2IÀFHU6HOHFWLRQ)RUP
In the matter of _____________________________________________ vs. ____________________________________________
Complainant
Respondent
The following individuals have agreed to serve as Mediation Officers for disputes between REALTOR® members of the
______________________________ Board of REALTORS®. As a party to this mediation, you have the right to challenge any Mediator
WKDW\RXEHOLHYHZRXOGQRWEHDFFHSWDEOHWRVHUYHDVWKH0HGLDWLRQ2IÀFHUIRU\RXUPHGLDWLRQFRQIHUHQFH7KLVIRUPPXVW
EHUHWXUQHGWRWKH%RDUGRIÀFHE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
Name: ___________________________________________________________________________________________________
I (will ______ ) (will not ______ reason_______________________________) accept this person as a Mediator for this dispute.
_________________________________________________________________________________________________________
Name of REALTOR® Principal/Authorized Designee (Type/Print)
_________________________________________________________________________________________________________
Signature of REALTOR® Principal/Authorized Designee
Date
(Adopted 11/11)
177
Code of Ethics and Arbitration Manual
Agreement to Mediate
The undersigned agree that they are involved in a contractual dispute defined by Article 17 of the Code or in a specific
noncontractual dispute as outlined in Standard of Practice 17-4.
The undersigned agree to submit this dispute to mediation in accordance with the mediation guidelines, as set forth in
the Code of Ethics and Arbitration Manual of the _________________________________________________________________.
Board of REALTORS®
Any Agreement signed by the parties, pursuant to the mediation conference, shall be binding.
As a party to the mediation process I understand and agree as follows:
Parties to mediation may withdraw from the process at any point prior to reaching an agreement. Parties to mediation that do not reach
an agreement shall be free to pursue arbitration of the dispute in accordance with the guidelines set forth in the Code of Ethics and
Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®. The parties acknowledge that the mediator is not providing legal
representation, legal advice, or legal services, and that the parties are advised of their right to be represented by counsel at the mediation
DQGDOVRRIWKHLUULJKWWRREWDLQLQGHSHQGHQWOHJDODGYLFHLIFRXQVHODUHQRWDWWKHPHGLDWLRQEHIRUHVLJQLQJDQ\ÀQDOVHWWOHPHQWDJUHHPHQW
$Q\RIIHUVRIVHWWOHPHQWWKDWZHUHQRWDFFHSWHGRUDQ\VXJJHVWHGUHVROXWLRQSURSRVHGE\WKH0HGLDWLRQ2IÀFHUWKDWZDVQRWDFFHSWHG
ZLOOQRWEHLQWURGXFHGDVHYLGHQFHQRUFRQVLGHUHGLQDQ\PDQQHUVKRXOGWKHPDWWHUUHTXLUHDUELWUDWLRQE\WKH%RDUG·V3URIHVVLRQDO
Standards Committee. However, if the parties agree to a settlement of the dispute, and the settlement is reduced to writing and has
been signed by all of the parties, the matter shall be considered resolved, and shall not be the subject of a subsequent arbitration
hearing. In the event that either of the parties fails to abide by the terms of the settlement, the matter may not be arbitrated; instead,
the other party should be encouraged to have the settlement agreement judicially enforced by a court of competent jurisdiction.
No aspect of this mediation conference shall be relied upon or introduced as evidence in any ethics, arbitration, judicial, or other
proceeding, including, but not limited to: views expressed or suggestions made by a party with respect to a possible settlement
of the dispute; admissions made in the course of the mediation; proposals made or views expressed by the Mediator or the
response of any party thereto. No privilege shall be affected by disclosures made in the course of mediation. Disclosure of any
UHFRUGVUHSRUWVRURWKHUGRFXPHQWVUHFHLYHGRUSUHSDUHGE\WKH%RDUGRU0HGLDWLRQ2IÀFHUVKDOOQRWEHFRPSHOOHG1HLWKHU
WKH%RDUGRUWKH0HGLDWLRQ2IÀFHUVKDOOEHFRPSHOOHGWRGLVFORVHRUWRWHVWLI\LQDQ\SURFHHGLQJDVWRLQIRUPDWLRQGLVFORVHGRU
UHSUHVHQWDWLRQVPDGHLQWKHFRXUVHRIWKHPHGLDWLRQRUFRPPXQLFDWLRQWRWKH0HGLDWRULQFRQÀGHQFH1HLWKHUWKH0HGLDWLRQ2IÀFHUWKH
___________________________ of REALTORS®, the ___________________________ Association of REALTORS® nor the NATIONAL
Board
State
ASSOCIATION OF REALTORS®RUDQ\RILWV0HPEHU%RDUGVVKDOOEHGHHPHG´QHFHVVDU\SDUWLHVµLQDQ\MXGLFLDOSURFHHGLQJVUHODWLQJWR
mediation under this Agreement. The parties acknowledge that the mediation proceedings will not be recorded and that weapons of
any type are prohibited.
Are the circumstances giving rise to this request for Mediation the subject of civil or criminal litigation or in any proceeding before
the state real estate licensing authority or any other state or federal regulatory or administrative agency? ______Yes ______ No
By my signature on this Agreement to Mediate, I acknowledge my rights and agree to the terms of the mediation procedures as stated
DERYH,KHUHE\DIÀUPWKDW,KDYHWKHDXWKRULW\WRHQWHULQWRDQGVLJQDELQGLQJZULWWHQDJUHHPHQWWRVHWWOHWKLVGLVSXWH
Complainants:
Respondents:
__________________________________________________
__________________________________________________
Type/Print Name
Type/Print Name
__________________________________________________
__________________________________________________
Signature
Signature
Date
__________________________________________________
Date
__________________________________________________
Address
Address
__________________________________________________
__________________________________________________
Type/Print Name
Type/Print Name
__________________________________________________
__________________________________________________
Signature
Signature
Date
__________________________________________________
__________________________________________________
Address
Address
(Revised 11/12)
Code of Ethics and Arbitration Manual
Date
178
_________________________________________________________________________________________________________
Board or State Association
_________________________________________________________________________________________________________
Address
City
State
Zip
1RWLFHRI6HOHFWLRQRI0HGLDWLRQ2IÀFHU
In the matter of _____________________________________________ vs. ____________________________________________
Complainant
Respondent
7KHDERYHSDUWLHVDUHQRWLÀHGWKDWBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBKDVDJUHHGWRVHUYHDVWKH
0HGLDWLRQ2IÀFHUIRU\RXUPHGLDWLRQFRQIHUHQFH7KH0HGLDWLRQ2IÀFHURUWKH%RDUGVWDIIZLOOFRQWDFW\RXGLUHFWO\WRVHWXSWKHGDWH
time, and location of the mediation conference.
The Mediation Process:
(1) Participation in the mediation process is voluntary*.
(2) Parties to a mediation conference may withdraw from the process at any point prior to reaching an agreement. Should you
choose to withdraw from the process prior to reaching an agreement, the complainant is free to pursue arbitration of the
dispute in accordance with the guidelines set forth in the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION
OF REALTORS®.
,IWKHSDUWLHVWRWKHPHGLDWLRQFRQIHUHQFHDJUHHWRDVHWWOHPHQWRIWKHGLVSXWHDQGWKHVHWWOHPHQWLVUHGXFHGWRZULWLQJDQGKDVEHHQ
signed by all of the parties, the matter shall be considered resolved, and shall not be the subject of a subsequent arbitration hearing.
In the event that either of the parties fail to abide by the terms of the settlement, the matter may not be arbitrated; instead, the other
party should be encouraged to have the settlement agreement judicially enforced by a court of competent jurisdiction.
(4) Parties to the mediation may be accompanied by and represented at the conference by legal counsel. If it is your intent to have legal
FRXQVHOSUHVHQWDWWKHPHGLDWLRQFRQIHUHQFHWKH0HGLDWLRQ2IÀFHURUWKH%RDUGVWDIIVKRXOGEHDGYLVHGRIWKLVIDFWDWOHDVWWHQ
days prior to the mediation conference.
(5) Parties to the mediation may agree to a mutual resolution of the matter at any time during the mediation conference. If following
DWKRURXJKGLVFXVVLRQRIDOOWKHSHUWLQHQWIDFWVWKHSDUWLHVDUHVWLOOXQDEOHWRUHVROYHWKHPDWWHUWKH0HGLDWLRQ2IÀFHUPD\PDNHD
recommendation for the resolution of the dispute. The recommendation for resolution can be oral or in writing and may be provided
WRERWKSDUWLHVDWWKHFRQFOXVLRQRIWKHPHGLDWLRQFRQIHUHQFH7KHSDUWLHVFDQDJUHHWRWKH0HGLDWLRQ2IÀFHU·VSURSRVHGUHVROXWLRQDW
WKHWLPHLWLVSUHVHQWHGWRWKHP,IQHLWKHURIWKHSDUWLHVGHVLUHWRJLYHDGGLWLRQDOFRQVLGHUDWLRQWRWKH0HGLDWLRQ2IÀFHU·VUHVROXWLRQ
ERWKSDUWLHVZLOOEHJLYHQDVSHFLÀHGSHULRGRIWLPHQRWWRH[FHHGIRUW\HLJKWKRXUVWRFRQVLGHUWKHUHVROXWLRQDQGWRDGYLVHWKH
0HGLDWLRQ2IÀFHURIWKHLUDFFHSWDQFHRUUHMHFWLRQRIWKHUHFRPPHQGHGUHVROXWLRQ)DLOXUHWRUHVSRQGWRWKHUHFRPPHQGHGUHVROXWLRQ
ZLWKLQWKHVSHFLÀHGWLPHSHULRGZLOOEHGHHPHGDVDUHMHFWLRQRIWKHVXJJHVWHGUHVROXWLRQ,IHLWKHURIWKHSDUWLHVUHMHFWWKHSURSRVHG
UHVROXWLRQWKHPHGLDWLRQFRQIHUHQFHZLOOEHGHHPHGFRQFOXGHGDQGWKHPDWWHUZLOOSURFHHGWRWKH%RDUG·V*ULHYDQFH&RPPLWWHH
IRUGHWHUPLQDWLRQ,IWKH*ULHYDQFH&RPPLWWHHKDVSUHYLRXVO\UHIHUUHGWKHGLVSXWHWRWKH%RDUG·V3URIHVVLRQDO6WDQGDUGV+HDULQJ
Panel, the matter will proceed to arbitration.
(6) If the parties to the mediation conference are unable to resolve the dispute, any offers of settlement that were not accepted or any
VXJJHVWHGUHVROXWLRQSURSRVHGE\WKH0HGLDWLRQ2IÀFHUWKDWZDVQRWDFFHSWHGZLOOQRWEHLQWURGXFHGDVHYLGHQFHQRUFRQVLGHUHG
LQDQ\PDQQHUVKRXOGWKHPDWWHUUHTXLUHDUELWUDWLRQE\WKH%RDUG·V3URIHVVLRQDO6WDQGDUGV&RPPLWWHH
_________________________________________________________________________________________________________
Signature of Secretary
Date
7KLVIRUPPD\EHUHYLVHGWRUHÁHFWWKDWPHGLDWLRQRIRWKHUZLVHDUELWUDEOHGLVSXWHVLVPDQGDWRU\
(Revised 11/11)
179
Code of Ethics and Arbitration Manual
_________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
6DPSOH/HWWHU$GYLVLQJRI0HGLDWLRQ2IÀFHU
To: Send to both the complainant and respondent for mediation conference
Dear ________________________________________________:
Thank you for agreeing to mediate your dispute with ______________________________________________________________*.
Your mediation conference has been scheduled for ______________________________________________________, 20 _______
Time
Day and Date
at the ___________________________________________________________________________________________________.
Location and Address
3OHDVHDGYLVHPHE\BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBLI\RXKDYHDFRQÁLFWZLWKWKLVGDWH
Date
The procedures for a mediation conference are less formal than the procedures for an arbitration hearing conducted by a Board of
REALTORS®6LQFHDPHGLDWLRQFRQIHUHQFHLVQRWDQDUELWUDWLRQSURFHHGLQJRUFRXUWDFWLRQEXWUDWKHUDVWUXFWXUHGQHJRWLDWLRQWRÀQG
a mutually acceptable solution to a dispute, it is not necessary for you to present testimony from witnesses. However, if you believe
you cannot fully explain your position without a witness, you may ask a witness(es) to be present. Additionally, the decision of
whether to be represented by legal counsel at the conference is an individual decision to be made by each of the parties to the dispute.
If it is your intent to have legal counsel or witnesses present, please so advise by _______________________________________ .
Date
This will allow appropriate notice to be provided to all parties to the dispute of your intention to be represented by legal counsel and/
or to have witnesses present at the conference.
I may be reached at ____________________________________ if you have any questions with regard to your scheduled mediation
Phone
conference or the mediation process in general. I look forward to the opportunity of assisting you in reaching a mutually acceptable
solution to the dispute.
Sincerely,
Secretary
FF7KH0HGLDWLRQ2IÀFHU
*This form may be revised if the Board of Directors requires mediation of otherwise arbitrable matters.
(Adopted 11/11)
Code of Ethics and Arbitration Manual
180
_________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Mediation Resolution Agreement
The undersigned pursuant to the mediation guidelines LQFRUSRUDWHGLQWRWKHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB·V
Board or State Association
professional standards procedures, have participated in mediation and agree to the following resolution:
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
The undersigned agree to be bound by the above resolution and waive any and all future rights to submit the dispute to
arbitration before the Professional Standards Committee of the ___________________ or to litigate the matter. We further hold
Board or State Association
the ___________________ harmless, acknowledge that we were advised of our right to attorney representation at the mediation and
Board or State Association
attorney review of the Resolution Agreement, and expressly waive any and all liability of the ___________________ or claim that
Board or State Association
we have against the ___________________ arising out of the manner in which the ___________________ conducted the mediation,
Board or State Association
Board or State Association
RUWKHUHVROXWLRQRIWKHGLVSXWHUHDFKHGDVDUHVXOWRIWKHBBBBBBBBBBBBBBBBBBB·VPHGLDWLRQSURFHGXUHV)XUWKHULIWKHDZDUGLV
Board or State Association
MXGLFLDOO\HQIRUFHGWKHQRQFRPSO\LQJSDUW\DJUHHVWRUHLPEXUVHWKHRWKHUSDUW\IRUFRXUWFRVWVDQGUHDVRQDEOHDWWRUQH\·VIHHV
__________________________________________________________________________________________________________
Name (Type/Print)
Signature
Date
__________________________________________________________________________________________________________
Name (Type/Print)
Signature
Date
$V0HGLDWLRQ2IÀFHURIWKHBBBBBBBBBBBBBBBBBBB,GRDWWHVWWKDW,ZDVSUHVHQWGXULQJWKHPHGLDWLRQSURFHVVDQGWKDWWKHDERYH
Board or State Association
resolution agreement was voluntarily entered into by the parties to the dispute.
__________________________________________________________________________________________________________
Type/Print Name
Signature
Date
(Amended 11/11)
181
Code of Ethics and Arbitration Manual
_________________________________________________________________________________________________________
Board or State Association
__________________________________________________________________________________________________________
Address
City
State
Zip
Termination of Mediation Conference
In the matter of ____________________________________________ vs. _____________________________________________
Complainant
Respondent
The above named parties have not been able to resolve their dispute through mediation, and the mediation conference has been terminated.
_________________________________________________________________________________________________________
1DPHRI0HGLDWLRQ2IÀFHU7\SH3ULQW
_________________________________________________________________________________________________________
6LJQDWXUHRI0HGLDWLRQ2IÀFHU'DWH
(Amended 11/11)
Code of Ethics and Arbitration Manual
182
Part Eleven—
Interboard Arbitration Procedures
Introduction: By becoming and remaining a member of the
National Association, each Member Board is required to provide
and participate in interboard arbitration when arbitrable issues
arise between a Board Member and a member of another Board
ZLWKLQWKHVWDWHDVGHÀQHGLQ$UWLFOHRIWKH&RGHRI(WKLFVDQG
6HFWLRQVDQGRIWKLV0DQXDOHowever, the complainant
should be advised that should he voluntarily agree to travel
to the Board having jurisdiction over the respondent and
submit to arbitration conducted by that Board, that Board
shall provide arbitration as requested subject to the provisions
of this Manual. In instances where the State Association does
not provide procedures for conducting interboard arbitration, the
arbitration should be arranged by joint effort of the two (2) Boards
having members involved in an arbitrable issue, and the following
procedures shall apply. (Revised 11/96)
Initiation of procedures: Interboard arbitration is initiated by
the written request of a REALTOR® to the Secretary of the Board
of which the REALTOR® is a member, who shall, in turn, arrange
interboard arbitration with the other Board. Where a written
interboard arbitration agreement exists between two (2) or more
Boards, the determination as to whether an arbitrable matter exists
shall be made pursuant to those procedures. Where no agreement
exists between Boards, interboard arbitration may take place
provided that the Grievance Committees of each Board determine
that a properly arbitrable matter exists. Appeals of arbitration
requests dismissed by the Grievance Committee and alleged
PLVFODVVLÀFDWLRQRIDQLVVXHDVEHLQJVXEMHFWWRHLWKHUYROXQWDU\
or mandatory arbitration shall be considered by the Board of
'LUHFWRUVRIWKH%RDUGZKRVH*ULHYDQFH&RPPLWWHH·VGHFLVLRQ
is being challenged pursuant to the existing procedures of that
Board. (Revised 11/98)
Fee deposit and arbitration agreement: The request for
interboard arbitration shall be accompanied by a deposit not to
exceed $500, which shall go toward the costs of arbitration as
determined by the panel, and by a signed arbitration agreement,
ZKLFKPD\EHLQWKHIRUPRI6SHFLPHQ)RUP$Part Thirteen
of this Manual, or in any other appropriate form provided or
permitted by law. (Revised 11/96)
Interboard arbitration involving parties in Boards distant from
each other may involve costs including travel expenses of
the arbitration panel and other expenses of the arbitration.
(Revised 5/06)
%RDUGVVKRXOGHVWDEOLVKDÀOLQJIHHIRULQWHUERDUGDUELWUDWLRQWKDW
PD\EHWKHVDPHDVRUGLIIHUHQWIURPÀOLQJIHHVIRUDUELWUDWLRQQRW
conducted pursuant to Part Eleven, provided that the total cost
WKDWPD\EHFKDUJHGDQ\SDUW\LQFOXGLQJDQ\ÀOLQJIHHPD\QRW
exceed $500. Boards administering arbitration pursuant to Part
Eleven should agree prior to any hearing which Board will retain
WKHUHVSHFWLYHSDUWLHV·ÀOLQJIHHV(Revised 5/06)
Selection of panel: Each Board participating in the interboard
arbitration procedure shall select one member of the arbitration
panel from its Professional Standards Committee. The Chair
RIHDFK%RDUG·V3URIHVVLRQDO6WDQGDUGV&RPPLWWHHVKDOODJUHH
upon the third member of the panel. The panel shall select its
&KDLUSHUVRQ7KH([HFXWLYH2IÀFHURU6HFUHWDU\RIWKH%RDUGRI
which the Chairperson is a member shall serve as Secretary of the
panel. (Revised 11/03)
$OOSDUWLHVKDYHWKHULJKWWRFKDOOHQJHWKHTXDOLÀFDWLRQVRIDQ\
DUELWUDWRUVRVHOHFWHGXSRQVKRZLQJJRRGDQGVXIÀFLHQWFDXVH
why the arbitrator should not serve. Questions concerning the
TXDOLÀFDWLRQRIDQ\DUELWUDWRUVKDOOEHGHWHUPLQHGE\WKH3UHVLGHQW
of the Board from which the arbitrator was selected.
Hearings and the organization and procedures incident thereto shall
be governed by the Code of Ethics and Arbitration Manual of the
National Association as adapted to conform to the provisions of
applicable state law and the optional provisions adopted by the
6HFUHWDU\DQG&KDLUSHUVRQRIWKHSDQHO·V%RDUG(Adopted 11/98)
Arbitration request and response: The Secretaries of the Boards
involved with the interboard arbitration shall ensure that the panel
Secretary receives all documents related to the arbitration request.
7KHSDQHO6HFUHWDU\PD\UHTXLUHWKHFRPSODLQDQWWRVXEPLWVXIÀFLHQW
copies of the arbitration request and related documents for each
member of the panel and the respondent or respondents. Within
_________ days after the interboard arbitration panel has been
formed, the panel Secretary shall send a copy of the arbitration
request to the respondent, informing the respondent that he may
ÀOHDZULWWHQUHVSRQVHZLWKWKHSDQHO6HFUHWDU\LIWKHUHVSRQGHQW
has not already received a copy of the arbitration request and had
an opportunity to submit a response) within twenty-one (21) days
from the date of the letter in which the request for arbitration was
PDLOHGWRKLPLQFOXGLQJVXIÀFLHQWFRSLHVIRUHDFK+HDULQJ3DQHO
member and the complainant. If the arbitration request has already
been provided to the respondent and a response solicited, the panel
Secretary shall obtain the response from the Board which requested
it and ensure that the complainant receives a copy. The panel
6HFUHWDU\PD\UHTXLUHWKHUHVSRQGHQWWRVXEPLWVXIÀFLHQWFRSLHV
of the response for each member of the panel and the complainant
or complainants. Any response shall be accompanied by a signed
DUELWUDWLRQDJUHHPHQWZKLFKPD\EHLQWKHIRUPRI6SHFLPHQ)RUP
$Part Thirteen of this Manual, or in any other appropriate
form provided or permitted by law, and a deposit not to exceed $500,
which shall go toward costs of such arbitration if so determined
by the arbitration panel, or shall be returned as determined by the
panel. (Revised 11/96)
The panel Secretary shall then schedule a hearing consistent with
the procedures established in the Code of Ethics and Arbitration
Manual of the NATIONAL ASSOCIATION OF REALTORS®. Interboard
arbitration shall not proceed unless signed arbitration agreements
Code of Ethics and Arbitration Manual
Ethics
Arbitration
and deposits have been received from the complainant and
respondent. (Revised 11/95)
and the other party, in writing, of their intention to do so at least
ÀIWHHQGD\VSULRUWRWKHGDWHÀ[HGIRUWKHKHDULQJLQFOXGLQJ
FRXQVHO·VQDPHDGGUHVVDQGSKRQHQXPEHU7KHSDQHOPD\KDYH
legal counsel present. (Revised 11/97)
Right of interboard arbitration panel to release members
from obligation to arbitrate: If the arbitration panel determines
that, because of the amount involved or the legal complexity of
the dispute, the dispute should not be arbitrated, it shall advise
the parties, the arbitration shall terminate, and the parties shall be
relieved of their obligation to arbitrate. The Hearing Panel can also
dismiss the arbitration request if the Hearing Panel concludes the
matter is not arbitrable, and the parties shall be relieved of their
obligation to arbitrate. If no interboard hearing on the merits is
held, any deposits made by the parties shall be returned to them.
(Revised 11/98)
The Arbitration Hearing: The following procedure is to be
followed in conducting the hearing:*
(a) Prior to the giving of any testimony, all witnesses shall be
VZRUQRUDIÀUPHGE\WKHSDQHO&KDLUSHUVRQ
(b) Each party or his attorney shall be given the opportunity of
making an opening statement.
)XUWKHULIWKHSDQHOGHWHUPLQHVWKDWDQDUELWUDEOHPDWWHUH[LVWV
but it is not subject to mandatory arbitration, neither party may be
compelled to arbitrate, and the arbitration shall terminate unless
all parties voluntarily agree to take part and abide by the decision.
Either party has twenty (20) days to appeal from the date of notice
that the panel declined to continue the proceeding. The materials
presented to the Hearing Panel when the Hearing Panel made its
GHFLVLRQWRGLVPLVVWRJHWKHUZLWKDQ\SDUW\·VZULWWHQUDWLRQDOH
FKDOOHQJLQJWKHSDQHO·VUHDVRQVIRUGLVPLVVDODQGWKHGLVPLVVDOLWVHOI
will be presented to the appeal panel comprised of a minimum
RIÀYHPHPEHUVZKRGLGQRWSUHYLRXVO\VLWLQUHYLHZRIWKH
DUELWUDWLRQUHTXHVWIURPWKHSDUWLHV·%RDUGVWREHDSSRLQWHGE\WKH
%RDUGV·3UHVLGHQWV7KHUHTXHVWIRUDUELWUDWLRQDQGDQ\DWWDFKPHQWV
WKHUHWRFDQQRWEHUHYLVHGPRGLÀHGRUVXSSOHPHQWHG7KHSDUWLHV
do not have the right to appear at the hearing before the appeal
panel. (Revised 5/07)
Place, date, and time of hearing: The panel Chairperson shall
designate the date, time, and place of the hearing. Each party shall
EHJLYHQDWOHDVWWZHQW\RQHGD\V·SULRUQRWLFHRIWKHKHDULQJ
but appearance at the hearing waives the right to such notice. The
arbitrators may recess the hearing from time to time as necessary
DQGRQUHTXHVWRIDSDUW\RUXSRQWKHDUELWUDWRUV·RZQPRWLRQ
PD\SRVWSRQHWKHKHDULQJIRUQRWPRUHWKDQWKLUW\GD\VXQOHVV
otherwise agreed to by the parties.
Conduct of hearing: The Chairperson shall preside at the
hearing, which shall not be bound by the strict rules of evidence
applicable to judicial tribunals, but by the Outline of Procedure
for Arbitration Hearing found in Part Twelve of this Manual, and
E\WKH&KDLUSHUVRQ·V3URFHGXUDO*XLGH&RQGXFWRIDQ,QWHUERDUG
Arbitration Hearing, also in Part Twelve of this Manual.
(c) Witnesses shall be present only as necessary to present their
testimony.
(d) The complainant may present evidence and give testimony as
deemed applicable to the arbitration by the Hearing Panel. No
testimony may be admitted related to the character or general
business reputation of any party unless such testimony has a
direct bearing on the matter being heard.
(e) The parties to the dispute shall present to the arbitrators, in
writing, such statements and proof as they deem necessary or
desirable, or as the arbitrators request. Proof may be submitted
LQWKHIRUPRIDIÀGDYLWVRULQDQ\RWKHUDFFHSWDEOHIRUP7KH
DUELWUDWLRQSDQHOPD\UHTXLUHWKDWVWDWHPHQWVEHYHULÀHGE\
DIÀGDYLWRUWKDWWKHDFFXUDF\RUDXWKHQWLFLW\RIDQ\GRFXPHQWV
RURWKHUSDSHUVVXEPLWWHGEHYHULÀHGE\DIÀGDYLW7KHSDQHO
shall receive and consider any evidence it deems material and
proper, including evidence of accountants and other experts.
Each party is responsible for the expenses of expert witnesses
he calls.
(f) At the conclusion of direct examination, the opposing party
or his counsel may cross-examine the witness.
(g) When both parties have concluded their examination or
cross-examination of a witness, the arbitrators may examine
the witness.
(h) Upon completion of all testimony, each party or his attorney
may summarize the proceedings to the arbitration panel. The
complainant will open the summation and the respondent will
close the summation.
(i) Thereafter, the parties shall be excused and the matter will
stand submitted.
Testimony and documentary evidence: Parties to disputes may
testify on their own behalf and may present testimony of witnesses
and introduce documentary evidence. Any party may examine and
cross-examine witnesses, and at the request of any party or on its
own motion, the panel, at its discretion, may exclude witnesses
or evidence.
Recordation: Any party (may/may not), at his own expense,
have a court reporter present, or may record the proceeding, and,
if transcribed, shall furnish a transcript to the panel. The panel
may also cause the hearing to be transcribed or recorded on its
own motion.
Legal counsel: Parties may, at their own expense, have legal
counsel present during the hearing, provided they notify the panel
6XFKKHDULQJVKDOOEHFRQGXFWHGDFFRUGLQJWRWKH&KDLUSHUVRQ·V
Procedural Guide: Conduct of an Interboard Arbitration Hearing, in
Part Twelve of this Manual.
Code of Ethics and Arbitration Manual
184
Ethics
Arbitration
Adjournment: The panel may adjourn the hearing from time to
time as necessity or convenience dictates.
Settlement: The parties to the arbitration may settle the dispute by
agreement at any time. In such event, the arbitration proceedings
shall be terminated.
The award: 7KHDZDUGRIWKHDUELWUDWRUV)RUP$
Part Thirteen of this Manual) shall be made as soon as
feasible after the evidence is presented. The award shall be in writing
and signed by the arbitrators, or a majority of them, and when so
VLJQHGDQGVHUYHGRQHDFKRIWKHSDUWLHVVKDOOEHÀQDODQGELQGLQJ
and shall not be subject to review or appeal except as required by
other provisions of this Manual or by applicable state law. Any
procedural review request (which must be limited to issues of due
SURFHVVVKDOOEHÀOHGZLWKWKHSDQHO6HFUHWDU\IRUFRQVLGHUDWLRQ
by a special review panel comprising an equal number of Directors
from each Board, chosen by the respective Board President, which
shall select its own Chairperson who will preside but will not
vote. (This ensures an odd number of panelists.) Dissemination
of the award shall be limited to the parties involved, the Board of
Directors of each Board of REALTORS®, and legal counsel and staff
on a need-to-know basis.
Costs of arbitration: Interboard arbitration may involve
travel and necessary out-of-pocket expenses by the arbitrators.
The arbitrators shall receive reimbursement of travel and
out-of-pocket expenses incurred in connection with their
service as arbitrators. Expenses of the arbitrators and all
RWKHUH[SHQVHVLQFOXGLQJWKHSDQHO·VXVHRIOHJDOFRXQVHODQG
recordation or transcription of the hearing, shall be borne by
the Boards involved as agreed in advance of the hearing. (Revised
5/06)
Enforcement: If a member fails to comply with an award, the
recipient to whom the award has been rendered by the arbitration
panel shall be advised by the panel to seek judicial enforcement
and request reimbursement of all legal costs incurred in seeking
such enforcement. At the discretion of the Board of Directors of
the Board of which the award recipient is a member, the Board
may support the request for judicial enforcement in the court and,
at the further discretion of the Board of Directors, reimburse the
award recipient for costs incurred in seeking such enforcement if
the courts do not award reimbursement of such costs.
Special Note Concerning Interstate Arbitration: The interboard
arbitration method may also be utilized for the conduct of
arbitration between Board Members of different Boards in different
VWDWHVVXEMHFWWRWKHSDUWLHV·YROXQWDU\DJUHHPHQWLQDGYDQFHWR
accept the place, date, and time established by the arbitration panel
chosen and to pay all costs of such arbitration as may be directed
by the panel, provided that the state in which each of the parties to
the arbitration resides, and the state in which the arbitration is held,
permits binding arbitration. Or, alternatively, if a Board Member
voluntarily agrees to travel to the Board having jurisdiction of the
other Board Member in another state and to submit to arbitration
by that Board, the Board shall provide arbitration as requested if
it deems the dispute an arbitrable matter and further subject to the
provisions of Part Ten, Section 45 of this Manual, which sets forth
the right of the Board to decline to arbitrate a dispute.
Refusal to Arbitrate: In the event a complainant alleges that
the respondent has improperly refused to submit a dispute to
DUELWUDWLRQRUWRPHGLDWLRQLIWKHUHVSRQGHQW·V%RDUGUHTXLUHV
REALTORS® [principals] to mediate otherwise arbitrable disputes
pursuant to Article 17),* the allegation shall be brought before a
WULEXQDORIÀYHPHPEHUVVHOHFWHGE\WKH%RDUG3UHVLGHQWIURP
PHPEHUVRIWKHUHVSRQGHQW·V%RDUGRI'LUHFWRUV7KHSURFHGXUHV
for notices, time of notices, and hearing prescribed for matters
before a Hearing Panel shall apply. The sole question of fact will
be to decide whether the party has refused to submit an arbitrable
matter to arbitration (or to mediation if required) in violation
of Article 17. Upon determination that the member has refused
to arbitrate or mediate a properly arbitrable matter, the tribunal
may direct implementation of appropriate sanction, including
suspension or expulsion of the member from the local Board of
REALTORS®7KHGHFLVLRQRIWKHWULEXQDOVKDOOEHÀQDODQGELQGLQJ
and is not subject to further review by the State Association or any
local Board. (Revised 11/11)
*Requiring REALTORS® (principals) to mediate otherwise arbitrable disputes
UHTXLUHVHVWDEOLVKPHQWRIDQDIÀUPDWLYHREOLJDWLRQLQD%RDUG·VJRYHUQLQJ
documents. Enabling bylaw provisions can be found at REALTOR.org
(see Model Bylaws).
185
Code of Ethics and Arbitration Manual
Ethics
Code of Ethics and Arbitration Manual
186
Part Twelve—
Conduct of an Arbitration Hearing
An arbitration hearing must be conducted in a manner which is fair
to all parties. This means that the parties must know their rights and
responsibilities in advance so they may properly prepare and present
their positions. Procedures are required to assure an orderly hearing.
%XWSURFHGXUHVPD\DQGVKRXOGEHPRGLÀHGDVLQWHUHVWVRIMXVWLFH
and truth dictate. However, in modifying established procedures,
care must be taken to assure that the rights and interests of all parties
DUHSURWHFWHG)RUWKLVUHDVRQYDULDWLRQIURPSUHVFULEHGSURFHGXUHV
should be reviewed with Board counsel and counsel for the parties
prior to implementation.
)ROORZLQJDUHVL[RXWOLQHV7KHÀUVWDQGVHFRQGDUHRXWOLQHV
of procedural information of interest and concern primarily to
the parties involved. This information should be provided to
WKHPZHOOLQDGYDQFHRIDQ\KHDULQJ)RUP$DQG)RUP
$DDVDSSURSULDWHPart Thirteen). The third outline is
primarily of interest to Hearing Panels and particularly to the
Chairpersons who preside over arbitration hearings. The fourth
outline is primarily of interest to Hearing Panels and particularly
to the Chairpersons who preside over interboard arbitration
KHDULQJV7KHÀIWKDQGVL[WKRXWOLQHVDUHSULPDULO\RILQWHUHVW
to tribunals and particularly to Chairpersons who preside over
procedural review requests and interboard procedural review
requests, respectively.
Outline of Procedure for Arbitration Hearing
7KHWHVWLPRQ\RIDOOSDUWLHVDQGZLWQHVVHVZLOOEHVZRUQRU
DIÀUPHG$OOZLWQHVVHVZLOOEHH[FXVHGIURPWKHKHDULQJ
except while testifying.
(4) Opening statement first by complainant and then by
UHVSRQGHQWEULHÁ\H[SODLQLQJWKHSDUW\·VEDVLFSRVLWLRQ
(5) The parties will be given an opportunity to present evidence
and testimony in their behalf and they may call witnesses.
(6) The parties and their legal counsel will be afforded an
opportunity to examine and cross-examine all witnesses
and parties.
(7) The panel members may ask questions at any time during
the proceedings.
(8) The Chairperson may exclude any questions which he or
she deems irrelevant or argumentative.
(9) Each side may make a closing statement. The complainant
ZLOOPDNHWKHÀUVWFORVLQJVWDWHPHQWDQGWKHUHVSRQGHQWZLOO
PDNHWKHÀQDOFORVLQJVWDWHPHQW
(10) Adjournment of hearing.
(11) The Hearing Panel will go into executive session to decide
the case. (Revised 11/12)
Award in arbitration hearing: The decision of the Hearing
Panel in an arbitration proceeding shall be reduced to writing
by the panel (setting forth only the amount of the award) and be
signed by the Arbitrators or a majority of them, and a copy shall
be furnished to each of the parties to the arbitration. A copy also
VKDOOEHÀOHGZLWKWKH6HFUHWDU\RIWKH%RDUG
_________________________________ Board of REALTORS
®
State of ___________________________________________
(To be mailed in advance to both parties.)
Postponement of hearing: Postponement may be granted if
there are extenuating circumstances. Requests for postponement
must be made in writing. Permission can be given by the
Chairperson. All parties shall be advised of the date of the
rescheduled hearing.
Use of legal counsel: A party may be represented in any hearing
by legal counsel. However, parties may not refuse to directly
respond to requests for information or questions addressed to them
by members of the panel except on grounds of self-incrimination,
or on other grounds deemed by the panel to be appropriate. In this
connection, the panel need not accept the statements of counsel as
EHLQJWKHVWDWHPHQWVRIFRXQVHO·VFOLHQWLIWKHSDQHOGHVLUHVGLUHFW
testimony. Parties shall be held responsible for the conduct of
their counsel. Any effort by counsel to harass, intimidate, coerce,
or confuse the panel members or any party to the proceedings, or
any action by counsel which is viewed by the panel as disruptive
of the proceedings, shall be grounds for exclusion of counsel.
The decision to exclude counsel for any of the foregoing reasons
shall be the result of a majority vote of the members of the panel
and shall be nonappealable. In the event counsel is excluded, the
KHDULQJVKDOOEHSRVWSRQHGWRDGDWHFHUWDLQQRWOHVVWKDQÀIWHHQ
QRUPRUHWKDQWKLUW\GD\VIURPWKHGDWHRIDGMRXUQPHQWWR
enable the party to obtain alternate counsel, provided, however, that
such postponement shall not be authorized if it appears to members
of the panel that the action of counsel has been undertaken by
counsel to obtain a postponement or delay of the hearing.
Recording the hearing: The Board shall, and any party (may/may
not), at their own expense, have a court reporter or recorder present
at the hearing, or may record the proceeding, and, if transcribed,
shall furnish a copy to the Secretary.
Method and objective of procedure: The Hearing Panel shall
not be bound by the rules of evidence applicable in courts of
law, but shall afford all parties a full opportunity to be heard,
present witnesses, and offer evidence, subject to its judgment as
to relevance.
Due process procedure: The hearing will proceed as follows:
(1) Chairperson cites authority to hear case and explains reason
for hearing.
(2) The arbitration request will be read into the record.
187
Code of Ethics and Arbitration Manual
Arbitration
Outline of Procedure for an Arbitration
Hearing Involving a Request and a
Counter-Request
refuting the contention that monies are owed to the countercomplainant.
(a) The respondent/counter-complainant may question the
complainant/counter-respondent and/or his witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
_________________________________ Board of REALTORS®
State of ___________________________________________
(b) The Hearing Panel may question the complainant/
counter-respondent and/or his witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
(To be mailed in advance to both parties.)
Postponement of hearing: Postponement may be granted if
there are extenuating circumstances. Requests for postponement
must be made in writing. Requests are reviewed by the Hearing
Panel Chair. If the request is approved by the Chair, all parties
shall be advised of the rescheduled hearing date.
(7) Respondent/counter-complainant presents her case, offering
testimony and evidence from herself and/or witness(es) to
support the contention that monies are owed to her by the
counter-respondent and refuting the contention that she
owes monies to the complainant.
Recording of the hearing: The Board shall, and any party (may/
may not), at their own expense, have a court reporter or recorder
present at the hearing, or may record the proceeding and, if
transcribed, shall furnish a copy to the Secretary.
(a) The complainant/counter-respondent may question the
respondent/counter-complainant and/or her witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
(b) The Hearing Panel may question the respondent/
counter-complainant and/or her witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
Method and objective of procedure: The Hearing Panel shall
not be bound by the rules of evidence applicable in courts of
law, but shall afford all parties a full opportunity to be heard,
present witnesses, and offer evidence, subject to its judgment as
to relevance.
(8) The complainant/counter-respondent may present additional testimony and evidence from himself and/or his
witness(es) to further support his position as a complainant/
counter-respondent.
Due process procedure: The hearing will proceed as follows:
(1) Chairperson cites authority to hear case and explains reason
for hearing.
(a) The respondent/counter-complainant may question the
complainant/counter-respondent and/or his witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
(2) The arbitration request and counter-request will be read into
the record.
7KHWHVWLPRQ\RIDOOSDUWLHVDQGZLWQHVVHVZLOOEHVZRUQRU
DIÀUPHG$OOZLWQHVVHVZLOOEHH[FXVHGIURPWKHKHDULQJ
except while testifying.
(9) The respondent/counter-complainant may present
additional testimony and evidence from herself and/or her
witness(es) to further support her position as respondent/
counter-complainant.
(4) Complainant/counter-respondent will present a brief
opening statement uninterrupted, stating the amount to be
arbitrated and an explanation of the source of the dispute
(i.e., commission dispute, request for security deposit
refund, etc. . . .) and refuting the contention that any monies
are owed.
(a) The complainant/counter-respondent may question the
respondent/counter-complainant and/or her witness(es)
LPPHGLDWHO\DIWHUHDFKKDVWHVWLÀHG
(5) Respondent/counter-complainant will present a brief
opening statement uninterrupted, stating the amount to be
arbitrated and an explanation of the source of the dispute
(i.e., commission dispute, request for security deposit
refund, etc. . . . ) and refuting the contention that any
monies are owed.
(b) The Hearing Panel may question the respondent/
counter-complainant and/or her witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
&URVVH[DPLQDWLRQLQZKLFKWKHSDUWLHVDUHJLYHQDÀQDO
opportunity to examine each other. The complainant/
FRXQWHUUHVSRQGHQWPD\ÀUVWDVNDQ\UHPDLQLQJTXHVWLRQVRI
the respondent/counter-complainant and/or the respondent/
FRXQWHUFRPSODLQDQW·VZLWQHVVHV7KHUHVSRQGHQW
counter-complainant may then ask any remaining questions
(6) Complainant/counter-respondent presents his case and
defense by offering testimony and evidence from himself
and/or his witness(es) to support the contention that
monies are owed to the complainant by the respondent and
Code of Ethics and Arbitration Manual
(b) The Hearing Panel may question the complainant/
counter-respondent and/or his witness(es) immediately
DIWHUHDFKKDVWHVWLÀHG
188
Arbitration
of the complainant/counter-respondent and/or of the
FRPSODLQDQW·VFRXQWHUUHVSRQGHQW·VZLWQHVVHV
(11) The Hearing Panel may question either the complainant/
counter-respondent and/or the respondent/ countercomplainant and/or their respective witness(es).
(12) When the parties and Hearing Panel members have no
further questions, the complainant/counter-respondent and
respondent/counter-complainant (respectively) may present
uninterrupted closing statements.
7KH&KDLUZLOOWKHQDGMRXUQWKHKHDULQJ
(14) The Hearing Panel will go into executive session to decide
the case.
Award in arbitration hearing: The decision of the Hearing
Panel in an arbitration proceeding shall be reduced to writing
by the panel (setting forth only the amount of the award) and be
signed by the arbitrators or a majority of them, and a copy shall
be furnished to each of the parties to the arbitration. A copy also
VKDOOEHÀOHGZLWKWKH6HFUHWDU\RIWKH%RDUG
Testimony: Any testimony relating to the character or general
reputation of either party shall not be permitted unless the
+HDULQJ3DQHOÀQGVWKDWVXFKWHVWLPRQ\KDVDGLUHFWEHDULQJRQ
the case. The Chairperson may exclude any question which he or
she deems irrelevant or argumentative.
Use of legal counsel: A party may be represented in any hearing
by legal counsel. However, parties may not refuse to directly
respond to requests for information or questions addressed to them
by members of the panel except on grounds of self-incrimination,
or on other grounds deemed by the panel to be appropriate. In
this connection, the panel need not accept the statements of
FRXQVHODVEHLQJWKHVWDWHPHQWVRIFRXQVHO·VFOLHQWLIWKHSDQHO
desires direct testimony. Parties shall be held responsible for
the conduct of their counsel. Any effort by counsel to harass,
intimidate, coerce, or confuse the panel members or any party
to the proceedings, or any action by counsel which is viewed by
the panel as disruptive of the proceedings, shall be grounds for
exclusion of counsel. The decision to exclude counsel for any
of the foregoing reasons shall be the result of a majority vote
of the members of the panel and shall be nonappealable. In the
event counsel is excluded, the hearing shall be postponed to a
GDWHFHUWDLQQRWOHVVWKDQÀIWHHQQRUPRUHWKDQWKLUW\
days from the date of adjournment to enable the party to obtain
alternate counsel, provided, however, that such postponement
shall not be authorized if it appears to members of the panel that
the action of counsel has been undertaken by counsel to obtain a
postponement or delay of the hearing.
%HDGYLVHGDOOPDWWHUVGLVFXVVHGDUHVWULFWO\FRQÀGHQWLDO
(Amended 11/10)
189
Code of Ethics and Arbitration Manual
Arbitration
Chairperson’s Procedural Guide:
Conduct of an Arbitration Hearing
_____________________, ________________________,
_____________________, and _____________________.
_________________________________ Board of REALTORS®
(If the complainant is represented by legal counsel, and/or
DFFRPSDQLHGE\ZLWQHVVHVFRQÀUPWKDWWKHUHVSRQGHQWZDV
QRWLÀHGLQDGYDQFH,IQRWDVNLIWKHUHLVDQREMHFWLRQ,IQRQH
have the respondent sign a statement to that effect.)
State of ___________________________________________
(Ask the recording Secretary to make sure that the names of all
parties present for the hearing have been added to this Guide and
that all the appropriate blanks have been completed.)
(4) Also present at this hearing is _______________________,
the respondent, and his/her sales associate(s), ___________.
(Ask all parties [including witnesses] to come into the hearing
room.)
(If the respondent is accompanied by an attorney and/or
witnesses, they should be introduced at this time.)
Display: %RDUGEDQQHUDQGWKH$PHULFDQÁDJ
_____________________, ________________________,
_____________________, and _____________________.
Seating arrangements: See Part Thirteen,)RUP$RIWKLV
Manual for recommended seating arrangements.
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement and conduct of
hearing: Ladies and gentlemen, I now call this hearing to order.
The Professional Standards Committee is charged with holding
appropriate hearings for the ____________________________
Board of REALTORS® in accordance with the procedures as set forth
LQWKH%RDUG·VE\ODZVLQPDWWHUVFRQFHUQLQJDOOHJHGXQHWKLFDO
conduct of a Board Member or Members, or in the arbitration
of a business dispute arising out of the real estate business and
DVGHÀQHGLQWKHE\ODZVRIWKH%RDUG7KHERG\PHHWLQJKHUH
is an impartial panel of the Professional Standards Committee
that has been selected and called here today to ascertain the
truth in the particular matter at hand, which is an arbitration
proceeding, and to render a decision on the testimony and evidence
presented. It is to be noted that an ethics proceeding is to be
clearly distinguished from an arbitration proceeding and should be
treated as a completely separate matter. The particular matter to be
considered by this panel at this time is an arbitration proceeding.
The Professional Standards Committee is a body duly constituted
under the authority of the bylaws of the___________________
Board of REALTORS® and has been duly appointed by the Board
President and approved by the Board of Directors. At this time, I
would like to introduce members of this panel.
(If the respondent is represented by legal counsel, and/or
DFFRPSDQLHGE\ZLWQHVVHVFRQÀUPWKDWWKHFRPSODLQDQWZDV
QRWLÀHGLQDGYDQFH,IQRWDVNLIWKHUHLVDQREMHFWLRQ,IQRQH
have complainant sign a statement to that effect.)
(5) Also present at this hearing is _______________________,
the recording secretary for the _______________________
Board of REALTORS®, and (if appropriate) _____________, the
court reporter present to transcribe these proceedings.
(Or, alternatively: This hearing is being mechanically
recorded.)
(If an attorney representing the Board is present, he/she should
be introduced at this time.)
______________________________________________.
The parties are specifically advised that any recording or
transcription that may be made of these proceedings can only be
used for purpose of procedural review, and any other use, including
use in other ethics or arbitration hearings, is expressly prohibited.
Basis of hearing: This hearing is to arbitrate a business dispute
arising out of the real estate business in accordance with the
request of ___________________________, that he/she be
awarded a commission or part of a commission on the sale of
__________________. The request for arbitration is as follows:
(1) My name is _____________________________________,
and I will serve as Chairperson of this panel.
(Read the amount and nature of the dispute into the record.)
(2) The other members of this panel are:
_____________________, ________________________,
_____________________, and _____________________.
Any prior offers of settlement or proposed resolutions of the
case, during mediation or otherwise, will not be considered by
the Hearing Panel.
3UHVHQWDWWKLVKHDULQJLVBBBBBBBBBBBBBBBBBBBBBBBBBBB
the complainant, and his/her sales associate(s), _________.
This panel is not governed by the technical rules of evidence which
may apply in courts. This panel will seek to determine all ascertainable
and relevant facts pertaining to the matter under consideration to
arrive at a peer judgment and decision by the panel that is fair to all
of the parties. The panel is governed and directed by the bylaws of the
_______ Board of REALTORS® and the Code of Ethics of the NATIONAL
(If the complainant is accompanied by an attorney and/or
witnesses, they should be introduced at this time.)
Code of Ethics and Arbitration Manual
190
Arbitration
$IÀUPDWLRQ Raise your right hand and, following the question I
ZLOOSRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRDIÀUP´'R\RX
DIÀUPWKDWWKHWHVWLPRQ\\RXDUHDERXWWRJLYHLQWKLVSURFHHGLQJ
VKDOOEHWKHWUXWKWKHZKROHWUXWKDQGQRWKLQJEXWWKHWUXWK"µ/HW
the record show that ____________ has/have answered in the
DIÀUPDWLYH
ASSOCIATION OF REALTORS®. The panel determines its own rules of
evidence and its own procedures to be followed with objectives of
equity and due process. The following has been generally accepted
and ruled on by this panel as to the procedures to be followed
during this hearing.
(1) All parties or their representatives to these proceedings will be
allowed a full opportunity to be heard on matters relevant to
the issue. The panel may rule at any time during this hearing
on the relevance of testimony being given or questions being
directed to any party or his/her representative or to witnesses
providing testimony. All parties and witnesses will be asked
WRVZHDURUDIÀUPWKDWWHVWLPRQ\JLYHQLVWKHWUXWKWRWKHEHVW
of their knowledge.
(If legal counsel is not present, proceed to 3.)
(At this time, the Chairperson should excuse any witnesses and ask
them to wait outside until called, and ask the remaining parties
to be seated.)
Outline of procedure for hearing: Both the complainant and
the respondent were mailed a copy of the Outline of Procedure
for an Arbitration Hearing (Part Thirteen,)RUP$RIWKLV
Manual). Did each of you receive the Outline?
(2) A party may be represented by legal counsel. However, no
party may refuse to directly respond to requests for information
or questions addressed to him/her by members of the panel
except on grounds of self-incrimination or other grounds which
the panel deems appropriate. In this connection, the panel need
not accept the statements of counsel as being the statements of
his/her client if the panel desires direct testimony. Counsel is
present to advise and consult with his/her client, and to speak
for him/her subject to appropriate rulings or determinations
by the panel. This panel will countenance no effort by any
party or by counsel to any party to harass, intimidate, coerce,
or confuse the panel members or any party to the proceedings.
(If yes) Let the record show that both the complainant and
respondent have stated that they did receive the Outline.
7KHSDQHOPD\UXOHDWDQ\WLPHRQWKHDGPLVVLELOLW\RI
evidence. As Chairperson, I will act as keeper of the evidence
introduced at this hearing and mark each with an exhibit
LGHQWLÀFDWLRQQXPEHURUOHWWHUDQGGDWH
We shall now proceed with the hearing.
(If no, the party should be given a copy of the Outline and the
Chairperson should determine whether that party has any
REMHFWLRQVWRSURFHHGLQJ
Do you have any questions concerning the Outline of Procedure?
(If none) Let the record show that neither the complainant nor the
respondent have any questions concerning the Outline of Procedure
for an Arbitration Hearing.
(4) The members of this panel are authorized, individually, to
DVNTXHVWLRQVDVWKH\GHHPSHUWLQHQWDQGVLJQLÀFDQWDWDQ\
time during this hearing. To preserve order, I will rule on
questions or testimony by the parties or their representatives,
or by witnesses in these proceedings. If deemed necessary,
I will consult with the members of the panel and with Board
counsel concerning such rulings.
(5) At this time, I request that all persons present in the room who
expect to testify at this hearing stand and be sworn or make
DSSURSULDWHDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Opening statement by parties or attorneys: Each party
RUWKHSDUW\·VDWWRUQH\DWODZVKDOOEHJLYHQDQRSSRUWXQLW\
for an opening statement which shall briefly outline
WKHEDVLFSUHPLVHRIWKHSDUW\·VSRVLWLRQ<RXZLOOKDYHDQ
opportunity to present your entire case at a later time during this
hearing.
Presentation by complainant: The complainant will now state
his/her case and present any evidence or witnesses that he/she
may desire.
Cross-examination by respondent
Questions from panel members
(The Chairperson should determine if any of the parties prefer
DIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Swearing: Raise your right hand and, following the question I
ZLOOSRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRVZHDU ´'R
you swear that the statements you are about to make at this hearing
are the truth, the whole truth, and nothing but the truth so help
\RX*RG"µ/HWWKHUHFRUGVKRZWKDWDOOSDUWLHVKDYHDQVZHUHGLQ
WKHDIÀUPDWLYH
Presentation by respondent: The respondent will now state
his/her case and present any evidence or witnesses that he/she
may desire.
Cross-examination by complainant
Questions from panel members
Closing statement by complainant: At this time, both the
complainant and the respondent will be given an opportunity
(And/or if needed)
191
Code of Ethics and Arbitration Manual
Ethics
Arbitration
to make a summary or closing statement if they so desire. The
FRPSODLQDQW·VFORVLQJVWDWHPHQWZLOOEHKHDUGÀUVW
Closing statement by respondent
Closing statement by Panel Chairperson: Do each of you feel
that this hearing has been conducted fairly?
(If yes) Let the record show that both the complainant and the
respondent have indicated that they feel this hearing has been
conducted fairly.
Have each of you had an adequate opportunity to testify, present
evidence and witnesses, and conduct cross-examination?
(If yes) Let the record show that both the complainant and
the respondent have indicated that they have had an adequate
opportunity to testify, present evidence and witnesses, and conduct
cross-examination.
(If any party answers “no,” ask him/her to state any concern
and, if there’s any merit to the concern, take steps to remedy any
SRVVLEOHGHÀFLHQF\
&RQÀGHQWLDOQDWXUHRIKHDULQJ Before we adjourn the hearing
of this panel, all persons present are advised that the award of
WKLVSDQHOLVFRQVLGHUHGFRQÀGHQWLDO,WZLOOEHDYDLODEOHRQO\
to members of this panel, to the parties, to counsel and staff
DVUHTXLUHGRUDVRWKHUZLVHVSHFLÀHGLQWKHCode of Ethics and
Arbitration Manual.8SRQÀQDODFWLRQE\WKH+HDULQJ3DQHOLQDQ
arbitration proceeding, the decision, when signed by the members
of the Hearing Panel (or a majority of them), shall be served
XSRQWKHSDUWLHVWRWKHGLVSXWH7KHSDUWLHVZLOOEHQRWLÀHGRIWKH
decision within the required time after this hearing is adjourned.
You are reminded that any recording or transcription that may
be made of these proceedings can only be used for the purpose of
procedural review, and any other use, including use in other ethics
or arbitration hearings, is expressly prohibited.
Adjournment: There being no further business to be considered
in this hearing, this portion of the hearing stands adjourned.
Proceeding following hearing — executive session: (After
DGMRXUQPHQWWKHSDQHOZLOOUHPDLQLQH[HFXWLYHVHVVLRQDQG
determine the award. The panel will follow explicitly the procedure
set forth in the Code of Ethics and Arbitration Manual as to
opportunity for procedural review. Boards should consider having
Board counsel review awards prior to issuance. This will serve
to protect the Board by minimizing vulnerability to litigation.)
(Revised 11/12)
Code of Ethics and Arbitration Manual
192
Ethics
Arbitration
Chairperson’s Procedural Guide:
Conduct of an Interboard Arbitration Hearing
(If the complainant is accompanied by an attorney, and/or
witnesses, they should be introduced at this time.)
_________________________________ Board of REALTORS®
____________________, _________________________,
____________________, and ______________________.
State of ___________________________________________
(If the complainant is represented by legal counsel, and/or
DFFRPSDQLHGE\ZLWQHVVHVFRQÀUPWKDWWKHUHVSRQGHQWZDV
QRWLÀHGLQDGYDQFH,IQRWDVNLIWKHUHLVDQREMHFWLRQ,IQRQH
have the respondent sign a statement to that effect.)
(Ask the recording Secretary to make sure that the names of all
parties present for the hearing have been added to this Guide and
that all appropriate blanks have been completed.)
(4) Also present at this hearing is _______________________,
the respondent, and his/her sales associate(s), __________
______________________________________________.
(Ask all parties [including witnesses] to come into the hearing
room.)
Display: %RDUGEDQQHUDQGWKH$PHULFDQÁDJ
Seating arrangements: See Part Thirteen,)RUP$RIWKLV
Manual for recommended seating arrangements.
(If the respondent is accompanied by an attorney and/or
witnesses, they should be introduced at this time.)
____________________, _________________________,
____________________, and ______________________.
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement and conduct of
hearing: Ladies and gentlemen, I now call this hearing to order.
Professional Standards Committees are charged with conducting
hearings for their respective Boards of REALTORS® in accordance
ZLWKWKHSURFHGXUHVDVVHWIRUWKLQWKH%RDUGV·E\ODZVLQPDWWHUV
concerning alleged unethical conduct by a Board Member or
Members, or in the arbitration of business disputes arising out of
WKHUHDOHVWDWHEXVLQHVVDVGHÀQHGLQWKHE\ODZVRIWKHUHVSHFWLYH
Boards. The body meeting here is an impartial panel of Professional
Standards Committee members who have been selected and called
today to ascertain the truth in the particular matter at hand, which is
the subject of an interboard arbitration proceeding, and to render a
decision on the testimony and evidence presented. It is to be noted
that an ethics proceeding is to be clearly distinguished from an
arbitration proceeding and the two should be treated as completely
separate matters. The particular matter to be considered by this
panel at this time is an interboard arbitration proceeding.
The Professional Standards Committee is a body duly constituted
under the authority of the bylaws of the respective Boards of
REALTORS® whose members have been duly appointed by their
Board Presidents and approved by their Boards of Directors. At
this time, I would like to introduce the members of this panel.
(If the respondent is represented by legal counsel, and/or
DFFRPSDQLHGE\ZLWQHVVHVFRQÀUPWKDWWKHFRPSODLQDQWZDV
QRWLÀHGLQDGYDQFH,IQRWDVNLIWKHUHLVDQREMHFWLRQ,IQRQH
have complainant sign a statement to that effect.)
(5) Also present at this hearing is ____________________, the
recording Secretary for the ____________________ Board
of REALTORS®, and (if appropriate) ___________________,
the court reporter present to transcribe these proceedings.
(Or, alternatively: This hearing is being mechanically
recorded.)
(If an attorney representing the Board is present, he/she should
be introduced at this time.)
______________________________________________.
The parties are specifically advised that any recording or
transcription that may be made of these proceedings can only be
used for purpose of procedural review, and any other use, including
use in other ethics or arbitration hearings, is expressly prohibited.
Basis of hearing: This hearing is to arbitrate a business dispute
arising out of the real estate business in accordance with the
request of ____________________________ that he/she be
awarded a commission or part of a commission on the sale of
__________________________________________________.
(1) My name is _______________________________; I am a
member of the ______________________________ Board
of REALTORS®, and I will serve as Chairperson of this panel.
(2) The other members of this panel are: _________________,
a member of the _________________ Board of REALTORS®,
and ____________________________, a member of the
___________________ Board of REALTORS®.
The request for arbitration is as follows:
(Read the amount and nature of the dispute into the record.)
3UHVHQWDWWKLVKHDULQJLVBBBBBBBBBBBBBBBBBBBBBBBBBBB
the complainant, and his/her sales associate(s) __________
______________________________________________.
Any prior offers of settlement or proposed resolutions of the
case, during mediation or otherwise, will not be considered by
the Hearing Panel.
Code of Ethics and Arbitration Manual
Arbitration
This panel is not dealing with questions of law, and it is not
governed by the rules of evidence which may apply in courts.
This panel will seek to determine all ascertainable and relevant
facts pertaining to the matter under consideration to arrive at a
peer judgment and decision that is fair to all of the parties. The
panel is governed and directed by the bylaws of the respective
Boards of REALTORS® and the Code of Ethics of the NATIONAL
ASSOCIATION OF REALTORS®. The panel determines its own
rules of evidence and its own procedures to be followed with
objectives of equity and due process. The following are the
procedures that will be followed during this hearing.
Swearing: Raise your right hand and, following the question I
ZLOOSRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRVZHDU´'R
you swear that the statements you are about to make at this hearing
are the truth, the whole truth, and nothing but the truth so help
\RX*RG"µ/HWWKHUHFRUGVKRZWKDWDOOSDUWLHVKDYHDQVZHUHGLQ
WKHDIÀUPDWLYH
(And/or if needed)
(1) All parties or their representatives to these proceedings will
have a full opportunity to be heard on matters relevant to the
issue. The panel may rule at any time during this hearing on
the relevance of testimony being given or on questions being
directed to any party or their representative or to witnesses
providing testimony. All parties and witnesses will be asked
WRVZHDURUDIÀUPWKDWWHVWLPRQ\JLYHQLVWKHWUXWKWRWKHEHVW
of their knowledge.
$IÀUPDWLRQ Raise your right hand and, following the question
,ZLOOSRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRDIÀUP
´'R\RXDIÀUPWKDWWKHWHVWLPRQ\\RXDUHDERXWWRJLYHLQWKLV
proceeding shall be the truth, the whole truth, and nothing but the
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DQVZHUHGLQWKHDIÀUPDWLYH
(At this time, the Chairperson should excuse any witnesses and ask
them to wait outside until called, and ask the remaining parties
to be seated.)
Outline of procedure for hearing: Both the complainant and
the respondent were provided with a copy of the Outline of
Procedure for an Arbitration Hearing (Part Thirteen,)RUP
$RIWKLV0DQXDO'LGHDFKRI\RXUHFHLYHWKH2XWOLQH"
(If no legal counsel is present, proceed to paragraph 3.)
(2) A party may be represented by legal counsel. However, no
party may refuse to directly respond to requests for information
or questions addressed to them by members of the panel
except on grounds of self-incrimination or other grounds
which the panel deems appropriate. In this connection, the
panel is not required to accept the statements of counsel as
being the statements of their client if the panel desires direct
testimony. Counsel is present to advise and consult with their
client, and to speak for them subject to appropriate rulings
or determinations by the panel. This panel will countenance
no effort by any party or by counsel to any party to harass,
intimidate, coerce, or confuse the panel members or any party
to the proceedings.
(If yes) Let the record show that both the complainant and
respondent did receive the Outline.
(If a party responds that he has not received the Outline, the
SDUW\VKRXOGEHJLYHQDFRS\DQGDVNHGLIKHKDVDQ\REMHFWLRQ
to proceeding.)
Do you have any questions concerning the Outline of Procedure?
(If none) Let the record show that neither the complainant nor the
respondent have any questions concerning the Outline of Procedure
for an Arbitration Hearing.
7KHSDQHOPD\UXOHDWDQ\WLPHRQWKHDGPLVVLELOLW\RI
evidence. As Chairperson, I will act as keeper of the evidence
introduced at this hearing and mark each with an exhibit
LGHQWLÀFDWLRQQXPEHURUOHWWHUDQGGDWH
(4) The members of this panel are authorized, individually, to ask
TXHVWLRQVDVWKH\GHHPSHUWLQHQWDQGVLJQLÀFDQWDWDQ\WLPH
during this hearing. To preserve order, I will rule on questions
or testimony by the parties and their representatives, and by
witnesses in these proceedings. If deemed necessary, I will
consult with the members of the panel and with Board counsel
concerning such rulings.
We shall now proceed with the hearing.
Opening statement by parties or attorneys: Each party or
WKHSDUW\·VDWWRUQH\DWODZVKDOOEHJLYHQDQRSSRUWXQLW\IRUDQ
RSHQLQJVWDWHPHQWZKLFKVKDOOEULHÁ\RXWOLQHWKHEDVLFSUHPLVH
RIWKHSDUW\·VSRVLWLRQ<RXZLOOKDYHDQRSSRUWXQLW\WRSUHVHQW
your entire case at a later time during this hearing.
Presentation by complainant: The complainant will now state
his/her case and present any evidence or witnesses that he/she
may desire.
(5) At this time, I request that all persons present in the room who
expect to testify at this hearing stand and be sworn or make
DSSURSULDWHDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Cross-examination by respondent
(The Chairperson should determine if any of the parties prefer
DIÀUPDWLRQLQOLHXRIEHLQJVZRUQ
Presentation by respondent: The respondent will now state
his/her case and present any evidence or witnesses that he/she
may desire.
Code of Ethics and Arbitration Manual
Questions from panel members
194
Arbitration
Cross-examination by complainant
Questions from panel members
Closing statement by complainant: At this time both the
complainant and the respondent will be given an opportunity
to make a summary or closing statement if they so desire. The
FRPSODLQDQW·VFORVLQJVWDWHPHQWZLOOEHKHDUGÀUVW
Closing statement by respondent
Closing statement by Panel Chairperson: Do you feel that this
hearing has been conducted fairly?
(If yes) Let the record show that both the complainant and the
respondent have indicated that they feel this hearing has been
conducted fairly.
Have each of you had an adequate opportunity to testify, present
evidence and witnesses, and conduct cross-examination?
(If yes) Let the record show that both the complainant and
the respondent have indicated that they have had an adequate
opportunity to testify, present evidence and witnesses, and
conduct cross-examination.
(If any party answers “no,” ask him/her to state any concerns
and, if there’s any merit to the concern, take steps to remedy any
SRVVLEOHGHÀFLHQF\
&RQÀGHQWLDOQDWXUHRIKHDULQJ Before we adjourn this hearing, all
persons present are advised that the award of this panel is considered
FRQÀGHQWLDO,WZLOOEHDYDLODEOHRQO\WRPHPEHUVRIWKLVSDQHOWR
WKHSDUWLHVWRFRXQVHODQGVWDIIDVUHTXLUHGRUDVRWKHUZLVHVSHFLÀHG
in the Code of Ethics and Arbitration Manual. 8SRQÀQDODFWLRQE\
the Hearing Panel in an arbitration proceeding, the decision, when
signed by the members of the Hearing Panel (or a majority of them),
shall be served upon the parties to the dispute. The parties will be
QRWLÀHGRIWKHGHFLVLRQZLWKLQWKHUHTXLUHGWLPHDIWHUWKLVKHDULQJ
is adjourned. You are reminded that any recording or transcription
that may be made of these proceedings can only be used for the
purpose of procedural review, and any other use, including use
in other ethics or arbitration hearings, is expressly prohibited.
Adjournment: There being no further business to be considered in
this hearing, this portion of the hearing stands adjourned.
Proceeding following hearing— executive session: (After
DGMRXUQPHQWWKHSDQHOUHPDLQVLQH[HFXWLYHVHVVLRQWR
determine the award, if any. The panel will follow the procedure
set forth in the Code of Ethics and Arbitration Manual as to
the opportunity for procedural review. Boards should consider
having Board counsel review awards prior to issuance. This
will serve to protect the Board by minimizing vulnerability to
litigation.) (Revised 11/12)
195
Code of Ethics and Arbitration Manual
Ethics
Arbitration
Chairperson’s Procedural Guide:
Conduct of a Procedural Review Hearing
(Arbitration)
Authority: The Procedural Review Hearing Tribunal present
here today is a body duly constituted under the authority of the
bylaws of the __________________________________ Board
of REALTORS®.
_________________________________ Board of REALTORS®
Introduction of the Procedural Review Hearing
Tribunal: At this time, I would like to introduce the members
of this Procedural Review Hearing Tribunal. My name is
_____________________, and I will serve as Chairperson. The
other members of this Procedural Review Hearing Tribunal are
________________________, _________________________,
________________________, _________________________,
________________________, _________________________,
_______________________ and _______________________.
State of ___________________________________________
(Ask the Secretary to make sure that the names of all parties
present for the hearing have been added to this Guide and that
all the appropriate blanks have been completed. Also note that
procedural reviews are not to be recorded.)
(Ask all parties to come into the hearing room.)
Display:%RDUGEDQQHUDQGWKH$PHULFDQÁDJ
Seating arrangements: See Part Thirteen,)RUP$LQWKLV
Manual for recommended seating arrangements.
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement: Ladies and gentlemen, I
now call this procedural review hearing to order. The professional
standards procedures of the __________________ Board of
REALTORS® provide for the right to a procedural review of the
arbitration hearing procedures used in arbitration hearings. Both
the complainant and/or the respondent in an arbitration hearing
have the right to request a procedural review. The request for
procedural review will be heard by (the Board of Directors) (or)
DSDQHORI'LUHFWRUVDSSRLQWHGE\WKH3UHVLGHQWRUWKH%RDUG·V
Executive Committee), hereinafter referred to as the Procedural
Review Hearing Tribunal.
Basis of this procedural review: The particular matter to be
considered by this Procedural Review Hearing Tribunal is a request
for procedural review of the arbitration hearing procedures used in
an arbitration hearing conducted on ______________________,
20______. The original arbitration
Hearing Panel was composed of ________________________,
________________________, _________________________,
__________________________________, and was chaired by
_____________________. The basis of the original arbitration
KHDULQJZDVD5HTXHVWDQG$JUHHPHQWWR$UELWUDWHÀOHGE\
________________________ and ______________________,
the complainant(s), against ____________________________
and ________________________________, the respondent(s),
claiming that a dispute arising out of the real estate business existed
between the complainant(s) and the respondent(s). The Award of
Arbitrators from the original arbitration hearing was as follows:
'LVTXDOLÀFDWLRQ Anyone who was a party to the original
arbitration hearing, a member of the Grievance Committee present
during the meeting when the arbitration request was reviewed,
a member of the original arbitration Hearing Panel, or who was
otherwise involved in this matter prior to the procedural review
UHTXHVWLVGLVTXDOLÀHGIURPVHUYLQJRQWKLV3URFHGXUDO5HYLHZ
+HDULQJ7ULEXQDO)XUWKHUPRUHDQ\RQHZKRLVUHODWHGE\EORRG
or marriage to any party to the original arbitration hearing, who
is an employer, partner, employee, or is associated in business
with any of the parties to the original arbitration hearing is also
GLVTXDOLÀHG,ZLOOQRZDVNWKHPHPEHUVRIWKH3URFHGXUDO5HYLHZ
Hearing Tribunal if they know of any reason why they should be
GLVTXDOLÀHG
(If none) The members of the Procedural Review Hearing Tribunal
KDYHQRWLQGLFDWHGDQ\UHDVRQZK\WKH\DUHQRWTXDOLÀHGWRVHUYH
$OWKRXJKWKHSDUWLHVKDYHEHHQSUHYLRXVO\QRWLÀHGRIWKHLUULJKWWR
challenge members of this Procedural Review Hearing Tribunal,
I will now ask the parties if they are aware of any reason why
any member of this Procedural Review Hearing Tribunal is not
TXDOLÀHGWRVHUYH
(If none) The parties have not indicated any reason why any
member of this Procedural Review Hearing Tribunal is not
TXDOLÀHGWRVHUYH
Additional introductions: Also present at this procedural
review hearing is ______________________, the complainant
in the original arbitration hearing; ______________________,
the respondent in the original arbitration hearing;
________________________, the original Arbitration Hearing
Panel Chairperson; and _______________________________,
the Secretary for the ____________________________ Board
of REALTORS®.
(Read the Award of Arbitrators [Part Thirteen, Form #A-12 of
this Manual].)
(If any attorneys are present, they should be introduced at this
time.)
________________________, _________________________,
________________________, and _____________________.
Prior to the original arbitration hearing, the arbitration request was
UHYLHZHGE\WKH%RDUG·V*ULHYDQFH&RPPLWWHHRUDSDQHORI
WKH%RDUG·V*ULHYDQFH&RPPLWWHHPHPEHUVDQGUHIHUUHGWRWKH
%RDUG·V3URIHVVLRQDO6WDQGDUGV&RPPLWWHHIRUDKHDULQJ
Appeal limitations: In this procedural review hearing we will
consider the arguments of _____________________________,
KHUHLQDIWHUUHIHUUHGWRDVWKHDSSHOODQWZKRÀOHGWKH5HTXHVW
Code of Ethics and Arbitration Manual
196
Ethics
Arbitration
for Procedural Review. The basis for the procedural review is
OLPLWHGWRDOOHJHGSURFHGXUDOGHÀFLHQFLHVRURWKHULUUHJXODULWLHV
the appellant believes constitute a deprivation of due process
(e.g., fraud, coercion, bias, prejudice, evident partiality, etc.).
The procedural review is further limited to the basis (bases) set
forth in writing in the Request for Procedural Review, which is
as follows.
(Read the Request for Procedural Review [Form #A-13 in Part
Thirteen of this Manual].)
Outline of procedure: At this time I would like to explain the
SURFHGXUHIRUWKLVSURFHGXUDOUHYLHZKHDULQJ)LUVWWKHDSSHOODQW
will have an opportunity to explain the basis (bases) upon which
he/she is requesting that the Award of Arbitrators be overturned.
Next, the original arbitration Hearing Panel Chairperson (or a
representative from the original panel) will have an opportunity
to respond to the allegations raised by the appellant. Then, any
of the other parties to the original arbitration hearing will have
the opportunity to explain why the Award of Arbitrators should
not be overturned. At any time during this proceeding, members
of the Procedural Review Hearing Tribunal may ask questions;
KRZHYHUSDUWLHVKDYHQRULJKWRIFURVVH[DPLQDWLRQ)LQDOO\
following the procedural review hearing, the Procedural Review
Hearing Tribunal will go into executive session to render a
decision. Do any of the parties have any questions regarding
the outline of procedure?
(If none) None of the parties has any questions regarding the
outline of procedure.
Guidelines: This Procedural Review Hearing Tribunal is not dealing
with questions of law and is not governed by the technical rules
of evidence which may apply in courts. This Procedural Review
Hearing Tribunal will seek to determine all ascertainable and relevant
facts pertaining to the matter under consideration to arrive at a peer
judgment and decision by the Procedural Review Hearing Tribunal
that is fair to all of the parties. After the Procedural Review Hearing
Tribunal has heard all of the evidence and testimony, we will go into
executive session to render our decision. The decision will be based
solely upon the arguments, evidence, and testimony offered during
this procedural review hearing. All parties or their representatives
to these proceedings will be allowed a full opportunity to be heard
on matters relevant to the issue. This Procedural Review Hearing
Tribunal may rule at any time during this hearing on the relevance
of testimony being given. All parties giving testimony will be asked
WRVZHDURUDIÀUPWKDWWHVWLPRQ\JLYHQLVWKHWUXWKWRWKHEHVWRI
their knowledge. A party may be represented by legal counsel. This
Procedural Review Hearing Tribunal need not accept the statements
of counsel as being the statements of their clients if it desires direct
testimony. Counsel is present to advise and consult with their clients,
and to speak for them subject to appropriate rulings or determinations
by this Procedural Review Hearing Tribunal. This Procedural Review
Hearing Tribunal will countenance no effort by any party or by
counsel to any party to harass, intimidate, coerce, or confuse the
Procedural Review Hearing Tribunal or any party to the proceedings.
197
Swearing: At this time I will request that all persons present in
the room who expect to testify at this procedural review hearing
VWDQGDQGEHVZRUQRUPDNHDSSURSULDWHDIÀUPDWLRQLQOLHXRI
being sworn. (The Chairperson should determine if any of the
SDUWLHVSUHIHUDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ3OHDVHVWDQG
raise your right hand and, following the question I pose, answer
LQWKHDIÀUPDWLYHLI\RXGRVRVZHDU´'R\RXVZHDUWKDWWKH
statements you are about to make at this hearing are the truth,
WKHZKROHWUXWKDQGQRWKLQJEXWWKHWUXWKVRKHOS\RX*RG"µ
(If yes)$OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVHEH
seated.
(And/or if needed)
$IÀUPDWLRQ Please stand, raise your right hand and, following
WKHTXHVWLRQ,SRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRDIÀUP
´'R\RXDIÀUPWKDWWKHVWDWHPHQWV\RXDUHDERXWWRPDNHDWWKLV
procedural review hearing are the truth, the whole truth, and
QRWKLQJEXWWKHWUXWK"µ
(If yes) $OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVHEH
seated.
The procedural review hearing: We shall now proceed with
the procedural review hearing.
Presentation by the appellant: At this time, the appellant may
explain the basis (bases) upon which he/she is requesting that the
Award of Arbitrators be overturned. However, no new evidence
shall be received except as such new evidence may bear upon the
claim of deprivation of due process.
Rebuttal by the original arbitration Hearing Panel
Chairperson: At this time, the original arbitration Hearing
Panel Chairperson will have an opportunity to explain why the
Award of Arbitrators should be upheld by this Procedural Review
Hearing Tribunal.
Testimony of other parties to the original arbitration
hearing: At this time, any other parties to the original arbitration
hearing will have an opportunity to explain why the Award of
Arbitrators should be upheld by the Procedural Review Hearing
Tribunal. Any party testifying must restrict his/her discussion to
the issues raised in the Request for Procedural Review.
Questions from panel members: The members of this panel are
authorized to ask questions at any time during this procedural review.
&RQÀUPDWLRQRIIDLUQHVVRSSRUWXQLW\WRWHVWLI\ Do each of you
feel that this procedural review hearing has been conducted fairly?
(If yes) All parties to this procedural review hearing have indicated
that they feel this procedural review hearing has been conducted
fairly.
Code of Ethics and Arbitration Manual
Ethics
Arbitration
Have each of you had an adequate opportunity to state why you
believe that the original Award of Arbitrators should or should not
be upheld by this Procedural Review Hearing Tribunal?
(If yes) The parties have indicated that they have had an adequate
opportunity to state why they believe the original Award of
Arbitrators should or should not be upheld by this Procedural
Review Hearing Tribunal.
Closing statements: The decision of this Procedural Review
+HDULQJ7ULEXQDOLVÀQDO%HIRUHZHDGMRXUQWKLVSURFHGXUDO
UHYLHZKHDULQJDOOSHUVRQVSUHVHQWDUHDGYLVHGWKDWWKHÀQDO
determination of this Procedural Review Hearing Tribunal is
FRQVLGHUHGFRQÀGHQWLDO8SRQÀQDODFWLRQE\WKLV3URFHGXUDO
Review Hearing Tribunal, the Board President shall disseminate
to the complainant and the respondent in the original arbitration
hearing, the Board of Directors, the Chairperson and members of
the original arbitration Hearing Panel, and Board legal counsel
such notice of the action as the Board President deems appropriate
under the circumstances.
Adjournment: There being no further business to be considered
in this procedural review hearing, this portion of the procedural
review hearing stands adjourned.
Executive session: The Procedural Review Hearing Tribunal will
QRZJRLQWRH[HFXWLYHVHVVLRQWRUHQGHULWVÀQDOGHFLVLRQZKLFK
will be based solely on the arguments, evidence, and testimony
offered at the procedural review hearing.
Procedural note: The sole issue for the Procedural Review
Hearing Tribunal to decide is whether the arbitration procedures
utilized in rendering the Award of Arbitrators afforded all parties
due process. If the Procedural Review Hearing Tribunal determines
that the original arbitration hearing process was defective in any
VLJQLÀFDQWZD\WKHQWKH$ZDUGRI$UELWUDWRUVZLOOEHLQYDOLGDWHG
and the matter will be referred to a different arbitration Hearing
Panel for a new hearing or, alternatively, the Procedural Review
Hearing Tribunal may release the parties from their obligation to
arbitrate if it concludes that the Board will be unable to impanel
an impartial arbitration Hearing Panel. (Adopted 4/92)
(Revised 11/11)
Code of Ethics and Arbitration Manual
198
Ethics
Arbitration
Chairperson’s Procedural Guide:
Conduct of a Procedural Review Hearing
(Interboard Arbitration)
Prior to the original arbitration hearing, the arbitration request was
reviewed by the Grievance Committees of each Board and referred
for a hearing consistent with Part 11 of this Manual.
_________________________________ Board of REALTORS®
Authority: The Procedural Review Hearing Tribunal present
here today is a body duly constituted under the authority of the
bylaws of the __________________________ (name of Board
or Association) and the ________________________ (name of
Board or Association).
State of ___________________________________________
(Ask the Secretary to make sure that the names of all parties
present for the hearing have been added to this Guide and that
all the appropriate blanks have been completed. Also note that
procedural reviews are not to be recorded.)
Introduction of the Procedural Review Hearing Tribunal: At
this time, I would like to introduce the members of this Procedural
Review Hearing Tribunal. My name is ___________, and I will
serve as Chairperson. The other members of this Procedural
Review Hearing Tribunal are:
________________________, _________________________
________________________, and _____________________.
(Ask all parties to come into the hearing room.)
Display: %RDUGEDQQHUDQGWKH$PHULFDQÁDJ
Seating arrangements: See Part Thirteen,)RUP$LQWKLV
Manual for recommended seating arrangements.
Start promptly: Rap gavel to open meeting.
Chairperson’s opening statement: Ladies and gentlemen, I
now call this procedural review hearing to order. The Professional
Standards procedures of the ____________ (name of Board or
Association) and the ________________ (name of Board or
Association) provide for the right to a procedural review of the
arbitration hearing procedures used in arbitration hearings. Both
the complainant and/or the respondent in an arbitration hearing
have the right to request a procedural review. The request for
procedural review will be heard by duly appointed members from
the Boards of Directors of the __________________ (name of
Board or Association), and the ________________________,
(name of Board or Association) hereinafter referred to as the
Procedural Review Hearing Tribunal.
'LVTXDOLÀFDWLRQ Anyone who was a party to the original
arbitration hearing, a member of the Grievance Committee
present during the meeting when the arbitration request was
reviewed, a member of the original arbitration Hearing Panel, or
who was otherwise involved in this matter prior to the procedural
UHYLHZUHTXHVWLVGLVTXDOLÀHGIURPVHUYLQJRQWKLV3URFHGXUDO
5HYLHZ+HDULQJ7ULEXQDO)XUWKHUPRUHDQ\RQHZKRLVUHODWHG
by blood or marriage to any party to the original arbitration
hearing, who is an employer, partner, employee, or is associated
in business with any of the parties to the original arbitration
KHDULQJLVDOVRGLVTXDOLÀHG,ZLOOQRZDVNWKHPHPEHUVRIWKH
Procedural Review Hearing Tribunal if they know of any reason
ZK\WKH\VKRXOGEHGLVTXDOLÀHG
(If none) The members of the Procedural Review Hearing Tribunal
KDYHQRWLQGLFDWHGDQ\UHDVRQZK\WKH\DUHQRWTXDOLÀHGWRVHUYH
$OWKRXJKWKHSDUWLHVKDYHEHHQSUHYLRXVO\QRWLÀHGRIWKHLUULJKWWR
challenge members of this Procedural Review Hearing Tribunal,
I will now ask the parties if they are aware of any reason why
any member of this Procedural Review Hearing Tribunal is not
TXDOLÀHGWRVHUYH
Basis of this procedural review: The particular matter to be
considered by this Procedural Review Hearing Tribunal is a
request for procedural review of the arbitration hearing procedures
used in an arbitration hearing conducted on ________________,
20_____. The original arbitration Hearing Panel was composed
of: ________________________, ________________________,
________________________, ________________________,_
_______________________, __________________________
__________ and was chaired by ________________________
__________. The basis of the original arbitration hearing was a
5HTXHVWDQG$JUHHPHQWWR$UELWUDWHÀOHGE\BBBBBBBBBBBBBB
___________________ and ____________________________
______, the complainant(s), against _____________________
and ___________________, the respondent(s), claiming that a
dispute arising out of the real estate business existed between the
complainant(s) and the respondent(s). The Award of Arbitrators
from the original arbitration hearing was as follows:
(If none) The parties have not indicated any reason why any
member of this Procedural Review Hearing Tribunal is not
TXDOLÀHGWRVHUYH
Additional introductions: Also present at this procedural
review hearing is ______________________, the complainant
in the original arbitration hearing; ______________________,
the respondent in the original arbitration hearing;
________________________, the original Arbitration Hearing
Panel Chairperson; and ____________________, the Secretary
for the ________________________ Board of REALTORS®.
(If any attorneys are present, they should be introduced at this
time.)
(Read the Award of Arbitrators [Part Thirteen, Form #A-12 of
this Manual] into the record.)
________________________, _________________________
________________________, and _____________________.
199
Code of Ethics and Arbitration Manual
Arbitration
Appeal limitations: In this procedural review hearing we will
consider the arguments of ____________________, hereinafter
UHIHUUHGWRDVWKHDSSHOODQWZKRÀOHGWKH5HTXHVWIRU3URFHGXUDO
Review. The basis for the procedural review is limited to alleged
SURFHGXUDOGHÀFLHQFLHVRURWKHULUUHJXODULWLHVWKHDSSHOODQW
believes constitute a deprivation of due process (e.g., fraud,
coercion, bias, prejudice, evident partiality, etc.). The procedural
review is further limited to the basis (bases) set forth in writing
in the Request for Procedural Review, which is as follows:
(Read the Request for Procedural Review [Form #A-13 in Part
Thirteen of this Manual] into the record.)
Outline of procedure: At this time I would like to explain the
SURFHGXUHIRUWKLVSURFHGXUDOUHYLHZKHDULQJ)LUVWWKHDSSHOODQW
will have an opportunity to explain the basis (bases) upon which
he/she is requesting that the Award of Arbitrators be overturned.
Next, the original arbitration Hearing Panel Chairperson (or a
representative from the original panel) will have an opportunity
to respond to the allegations raised by the appellant. Then, any
of the other parties to the original arbitration hearing will have
the opportunity to explain why the Award of Arbitrators should
not be overturned. At any time during this proceeding, members
of the Procedural Review Hearing Tribunal may ask questions;
KRZHYHUSDUWLHVKDYHQRULJKWRIFURVVH[DPLQDWLRQ)LQDOO\
following the procedural review hearing, the Procedural Hearing
Tribunal will go into executive session to render a decision. Do
any of the parties have any questions regarding the outline of
procedure?
(If none) None of the parties has any questions regarding the
outline of procedure.
Guidelines: This Procedural Review Hearing Tribunal is
not dealing with questions of law and is not governed by the
technical rules of evidence which may apply in courts. This
Procedural Review Hearing Tribunal will seek to determine
all ascertainable and relevant facts pertaining to the matter
under consideration to arrive at a peer judgment and decision
by the Procedural Review Hearing Tribunal that is fair to all
of the parties. After the Procedural Review Hearing Tribunal
has heard all of the evidence and testimony, we will go into
executive session to render our decision. The decision will
be based solely upon the arguments, evidence, and testimony
offered during this procedural review hearing. All parties or
their representatives to these proceedings will be allowed a
full opportunity to be heard on matters relevant to the issue.
This Procedural Review Hearing Tribunal may rule at any time
during this hearing on the relevance of testimony being given.
$OOSDUWLHVJLYLQJWHVWLPRQ\ZLOOEHDVNHGWRVZHDURUDIÀUP
that testimony given is the truth to the best of their knowledge.
A party may be represented by legal counsel. This Procedural
Review Hearing Tribunal need not accept the statements of
counsel as being the statements of their clients if it desires direct
testimony. Counsel is present to advise and consult with their
clients, and to speak for them subject to appropriate rulings or
determinations by this Procedural Review Hearing Tribunal.
This Procedural Review Hearing Tribunal will countenance
Code of Ethics and Arbitration Manual
200
no effort by any party or by counsel to any party to harass,
intimidate, coerce, or confuse the Procedural Review Hearing
Tribunal or any party to the proceedings.
Swearing: At this time I will request that all persons present in
the room who expect to testify at this procedural review hearing
VWDQGDQGEHVZRUQRUPDNHDSSURSULDWHDIÀUPDWLRQLQOLHXRI
being sworn. (The Chairperson should determine if any of the
SDUWLHVSUHIHUDIÀUPDWLRQLQOLHXRIEHLQJVZRUQ3OHDVHVWDQG
raise your right hand and, following the question I pose, answer
LQWKHDIÀUPDWLYHLI\RXGRVRVZHDU´'R\RXVZHDUWKDWWKH
statements you are about to make at this hearing are the truth,
WKHZKROHWUXWKDQGQRWKLQJEXWWKHWUXWKVRKHOS\RX*RG"µ
(If yes)$OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVHEH
seated.
(And/or if needed)
$IÀUPDWLRQ Please stand, raise your right hand and, following
WKHTXHVWLRQ,SRVHDQVZHULQWKHDIÀUPDWLYHLI\RXGRVRDIÀUP
´'R\RXDIÀUPWKDWWKHVWDWHPHQWV\RXDUHDERXWWRPDNHDWWKLV
procedural review hearing are the truth, the whole truth, and
QRWKLQJEXWWKHWUXWK"µ
(If yes)$OOSDUWLHVKDYHDQVZHUHGLQWKHDIÀUPDWLYH3OHDVHEH
seated.
The procedural review hearing: We shall now proceed with
the procedural review hearing.
Presentation by the appellant: At this time, the appellant may
explain the basis (bases) upon which he/she is requesting that the
Award of Arbitrators be overturned. However, no new evidence
shall be received except as such new evidence may bear upon the
claim of deprivation of due process.
Rebuttal by the original arbitration Hearing Panel
Chairperson: At this time, the original arbitration Hearing
Panel Chairperson will have an opportunity to explain why the
Award of Arbitrators should be upheld by this Procedural Review
Hearing Tribunal.
Testimony of other parties to the original arbitration
hearing: At this time, any other parties to the original arbitration
hearing will have an opportunity to explain why the Award of
Arbitrators should be upheld by the Procedural Review Hearing
Tribunal. Any party testifying must restrict his/her discussion to
the issues raised in the Request for Procedural Review.
Questions from panel members: The members of this panel are
authorized to ask questions at any time during this procedural review.
&RQÀUPDWLRQRIIDLUQHVVRSSRUWXQLW\WRWHVWLI\ Do each of you
feel that this procedural review hearing has been conducted fairly?
Arbitration
(If yes) All parties to this procedural review hearing have indicated
that they feel this procedural review hearing has been conducted
fairly.
Have each of you had an adequate opportunity to state why you
believe that the original Award of Arbitrators should or should not
be upheld by this Procedural Review Hearing Tribunal?
(If yes) The parties have indicated that they have had an adequate
opportunity to state why they believe the original Award of
Arbitrators should or should not be upheld by this Procedural
Review Hearing Tribunal.
Closing statements: The decision of this Procedural Review
+HDULQJ7ULEXQDOLVÀQDO%HIRUHZHDGMRXUQWKLVSURFHGXUDO
UHYLHZKHDULQJDOOSHUVRQVSUHVHQWDUHDGYLVHGWKDWWKHÀQDO
determination of this Procedural Review Hearing Tribunal is
FRQVLGHUHGFRQÀGHQWLDO8SRQÀQDODFWLRQE\WKLV3URFHGXUDO
Review Hearing Tribunal, the Board President shall disseminate
to the complainant and the respondent in the original arbitration
hearing, the Board of Directors, the Chairperson and members of
the original Arbitration Hearing Panel, and Board legal counsel
such notice of the action as the Board President deems appropriate
under the circumstances.
Adjournment: There being no further business to be considered
in this procedural review hearing, this portion of the procedural
review hearing stands adjourned.
Executive session: The Procedural Review Hearing Tribunal will
QRZJRLQWRH[HFXWLYHVHVVLRQWRUHQGHULWVÀQDOGHFLVLRQZKLFK
will be based solely on the arguments, evidence, and testimony
offered at the procedural review hearing.
Procedural note: The sole issue for the Procedural Review
Hearing Tribunal to decide is whether the arbitration procedures
utilized in rendering the Award of Arbitrators afforded all parties
due process. If the Procedural Review Hearing Tribunal determines
that the original arbitration hearing process was defective in any
VLJQLÀFDQWZD\WKHQWKH$ZDUGRI$UELWUDWRUVZLOOEHLQYDOLGDWHG
and the matter will be referred to a different arbitration Hearing
Panel for a new hearing or, alternatively, the Procedural Review
Hearing Tribunal may release the parties from their obligation to
arbitrate if it concludes that the Board will be unable to impanel
an impartial arbitration Hearing Panel.
(Revised 11/11)
201
Code of Ethics and Arbitration Manual
Part Thirteen—Specimen Forms
The Manual refers to certain forms used in connection with
arbitration proceedings conducted under it. Following are
specimens of such forms.
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counsel to assure that they conform to state law and to any
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233
Code of Ethics and Arbitration Manual
Part Fourteen—State Association
Professional Standards Committee
Authority and Requirement: The obligation of the State
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the business activities of its members may, after due notice
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or fraud resulting in substantial economic harm. Enforcement
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mediation and arbitration services to members and their
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a REALTOR®ZKHUHWKH%RDUGZLWKJRRGDQGVXIÀFLHQW
reason is unable to arbitrate the dispute or the REALTOR®
is a direct member of the State Association. (Adopted
11/95)
Ethics and Arbitration Proceedings: 3URIHVVLRQDOVWDQGDUGV
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reference is made a part of these bylaws.
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applicable state law. It is further recommended that the State
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the State Association described in the preceding paragraphs and
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within the state.
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the state.
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urther extension of available Professional Standards
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SURYLGHLQLWVCode of Ethics and Arbitration Manual that
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as required in that particular district or region of the state.
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State Association to accomplish the statewide facility on a
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to be applicable to the special and particular responsibilities
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for arbitration: The Code of Ethics and Arbitration
Manual of the State Association should clearly delineate
the specific circumstances under which complaints of
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propriety of the complaint or request and the propriety of
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Expenses of hearings conducted by State Association:
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should a party to an ethics proceeding be responsible for
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or a group of Directors selected by the State Association
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panel. Any procedure established should be made an integral
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after any appeal has been determined should also be made an
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whether the party has refused to submit an arbitrable
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determination that the member has refused to arbitrate or to
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found at 5($/725RUJVHH1$5Model Bylaws
Code of Ethics and Arbitration Manual
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to direct certain areas of consideration to the State Association
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conducted by the State Association.
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ASSOCIATION OF REALTORS®): %\EHFRPLQJDQGRUUHPDLQLQJ
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binds himself or herself and agrees to submit to arbitration by
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be submitted and conducted under the procedure established
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as may be required by applicable state law.
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and logistics and can be accomplished only if both parties agree
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party should refuse to pay the award.
Code of Ethics and Arbitration Manual
Questions and Answers
1. Can the Board of Directors direct a Grievance
Committee to always (or, conversely, never)
solicit responses
in ethics and arbitration proceedings?
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the Board that she will be represented by
legal counsel. Is it appropriate for her counsel
to take an active role in the hearing?
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that no REALTOR® may refuse to answer questions directly put
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the panel or any party to the proceeding.
3. A salesperson is the respondent in an ethics
complaint. The respondent asks that his
principal broker (who is also a REALTOR®) serve
as his counsel during the hearing.
Is this permitted?
5. Our Board is small, and if we are unable to
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to consider an appeal, can we refer the appeal
to another Board?
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LQWKHCode of Ethics and Arbitration Manual.
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professional standards records?
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consult legal counsel when determining how long professional
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discipline has been complied with absent a threat of litigation. In
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professional standards records should be retained until the appeal
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7. Can an extension be granted for responses to
be submitted to the Board of REALTORS®?
<HV$VXVHGLQWKHCode of Ethics and Arbitration Manual, the
WHUP´FRXQVHOµUHIHUVWRDQDWWRUQH\DWODZRUWRDREALTOR® of the
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would be inappropriate for anyone other than a licensed attorney
to act as counsel for a party to an arbitration proceeding.
4. What does NAR recommend with respect
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arbitration hearings?
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procedural guidance. This is a matter to be determined by
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appropriate tribunal.
8. Can an individual who is not a named party
attend an ethics or arbitration hearing?
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SURFHHGLQJWKHREALTOR®SULQFLSDOFRQVLVWHQWZLWKPart Two,
6HFWLRQGRIWKHCode of Ethics and Arbitration Manual may
DWWHQG,QDQ\DUELWUDWLRQSURFHHGLQJREALTOR® nonprincipals
and REALTOR-ASSOCIATE®VZKRKDYHDYHVWHGÀQDQFLDOLQWHUHVW
consistent with Part Ten,6HFWLRQDRIWKLV0DQXDOPD\
also attend.
Code of Ethics and Arbitration Manual
Questions & Answers
9. Must our Board grant a postponement each
time one is requested? Or, if one party
receives a postponement, is the other party
automatically entitled to a postponement if
requested?
15. Can a REALTOR® principal invoke arbitration
if the dispute arose prior to the time the
requester became a REALTOR®?
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Code of Ethics and Arbitration Manual.
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if a requested continuance will be granted.
10. What is an “arbitrable issue?”
An arbitrable issue is defined as a question arising out of
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QRQFRQWUDFWXDOGLVSXWHVDVGHÀQHGLQ6WDQGDUGRI3UDFWLFH
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parties that arises out of a real estate transaction and a disagreement
between the parties as to entitlement to a sum of money. See Part
Ten,6HFWLRQ$UELWUDEOH,VVXHRIWKLV0DQXDO
11. Can a mandatory arbitration exist between
two cooperating brokers?
%HIRUHDQHWKLFVFRPSODLQWLVUHIHUUHGWRWKH3URIHVVLRQDO6WDQGDUGV
&RPPLWWHHIRUKHDULQJLWPD\EHDPHQGHGHLWKHUE\WKH
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&RPPLWWHHGLVPLVVHVDQ$UWLFOHVFLWHGE\WKHFRPSODLQDQWWKH
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complaint may be amended only by the complainant with the
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SURYLGHGZLWKDFRS\RIWKHDPHQGHGFRPSODLQWDQGEHJLYHQDQ
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An ethics complaint may also be amended by either the
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prepare a response to the amended complaint.
3RVVLEO\5HIHUWR$SSHQGLFHV,DQG,,WRPart Ten of the Code
of Ethics and Arbitration ManualDQG6WDQGDUGRI3UDFWLFH
12. A Board has scheduled an arbitration
hearing, and the respondent advises the
Board that he will not attend the hearing. Can
the scheduled hearing proceed?
$UELWUDWLRQLQWKHDEVHQFHRIDUHVSRQGHQWPD\WDNHSODFHZKHUH
permitted by state statute or case law. The Code of Ethics and
Arbitration Manual, in Part Ten,6HFWLRQSURYLGHVWKUHH
RSWLRQVDGGUHVVLQJWKHFLUFXPVWDQFHVXQGHUZKLFK%RDUGVPD\
FRQGXFWDUELWUDWLRQ%RDUGVVKRXOGFRQVXOWZLWK%RDUGRU6WDWH
Association legal counsel and determine which of these options
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hearing on the merits.
13. Can a Board, prior to an arbitration hearing
being held, hold the disputed funds in its
escrow account if voluntarily submitted by
the parties?
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6WDWHPHQW
14. Can a client request arbitration with a
REALTOR® principal?
Arbitration requests may be amended to add or delete parties
RQO\E\WKHFRPSODLQDQWRUUHVSRQGHQW'XULQJLWVLQLWLDOUHYLHZ
KRZHYHUWKH*ULHYDQFH&RPPLWWHHPD\VXJJHVWWKDWVXFK
amendments be made in order to ensure that all related claims
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Code of Ethics and Arbitration Manual.
17. Who can withdraw a complaint, and when
can this be done?
&RPSODLQDQWVPD\ZLWKGUDZWKHLUFRPSODLQWVDWDQ\WLPHSULRU
to the start of an ethics hearing. If a complaint is withdrawn
E\WKHFRPSODLQDQWDIWHUWKH*ULHYDQFH&RPPLWWHHGHWHUPLQHV
WKHFRPSODLQWUHTXLUHVDKHDULQJLWZLOOEHUHIHUUHGEDFNWRWKH
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RIWKHSXEOLFWUXVWDVGHÀQHGLQ$UWLFOH,96HFWLRQRIWKH
1DWLRQDO$VVRFLDWLRQ·V%\ODZVPD\KDYHRFFXUUHG2QO\ZKHUH
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proceed as the complainant. A complaint so withdrawn shall not
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our Board alleging a violation of an MLS
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complaint?
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Code of Ethics and Arbitration Manual
16. Who can amend an ethics complaint, and
when can it be amended?
Questions & Answers
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E\WKH0XOWLSOH/LVWLQJ6HUYLFH&RPPLWWHHDQGLIDYLRODWLRQ
LVGHWHUPLQHGWKDWFRPPLWWHHPD\GLUHFWWKHLPSRVLWLRQRID
VDQFWLRQ7KHUHFLSLHQWRIVXFKDVDQFWLRQKRZHYHUPD\WKHQ
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includes charges of unethical conduct should be forwarded to
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Handbook on Multiple Listing Policy.
19. Is there a policy that would allow ethics
complaints that involve several REALTORS® to
be consolidated into one ethics hearing?
'RHVWKHFRPSODLQDQWҋVREALTOR® principal,
if not a co-complainant, have the right to be
present during an ethics hearing?
1RRQO\WKHUHVSRQGHQW·VREALTOR® principal has the right to
DWWHQGWKHHWKLFVKHDULQJXQOHVVWKHFRPSODLQDQW·VREALTOR®
SULQFLSDOLVDFWLQJDVFRXQVHO5HIHUWRPart Two, 6HFWLRQDQG
6HFWLRQRIWKHCode of Ethics and Arbitration Manual.
23. A member found in violation has asked
for an extension in order to complete the
discipline imposed. Can such an extension
be granted?
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24. Our Board is considering publishing the fact
that a member has been suspended. What
should be contained in such a notice?
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Consolidation of Ethics Complaints Arising Out of the Same
Transaction. In the interest of maximizing the resources of
Boards and Associations, Grievance Committees should use
all reasonable efforts to ensure that all ethics complaints
arising out of the same transaction or event are consolidated
and scheduled for hearing in a single hearing. Respondents
to ethics complaints do not have the right to a separate
hearing unless they can demonstrate that consolidation
of complaints would prevent them from receiving a fair
hearing.
7KHQDWXUHIRUPFRQWHQWDQGH[WHQWRIWKLVQRWLFHVKRXOGEH
UHYLHZHGE\OHJDOFRXQVHOSULRUWRGLVVHPLQDWLRQ+RZHYHU
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to distinguish the respondent from another member with the
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20. A principal broker has not been named
as a respondent in an ethics complaint
but wants to attend the hearing in which
his sales associate is a respondent.
Can he do so?
25. A member who is a respondent in an ethics
complaint is demanding that the complainant
produce certain documents. Can he do so?
$SULQFLSDOZKRLVQRWMRLQHGLQDQHWKLFVFRPSODLQWDVD
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of hearing.
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21. Can our Board impose “conditional”
discipline? For example, can we stipulate
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is paid?
Such an arbitration request and ethics complaint cannot be
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PXVWEHVRDGYLVHG,IWKHFRPSODLQDQWVWLOOZLVKHGWRSXUVXH
both the arbitration request and the charge of alleged unethical
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26. Can a Board consolidate an ethics complaint
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complainant against the same respondent?
Code of Ethics and Arbitration Manual
Ethics
27. What does the National Association
recommend be included in the “Findings
of Fact” section of sample form #E-11?
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conclusion that the matter be dismissed. (Revised 5/07)
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2FWREHUIRUWKHSURSHUW\ZKLFKGLGQRWGLVFORVHWKHQDPHRI
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28. A REALTOR® belongs to Board A only and is
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Board A forward the professional standards
records of this individual to Board B if the
individual has been found in violation of the
Code of Ethics at Board B?
The new REALTOR® principal may only be required to arbitrate
if the new REALTOR® principal was a REALTOR® principal of
WKDWÀUPDWWKHWLPHWKHGLVSXWHDURVH7KHFRPSODLQDQWFDQ
name any REALTOR®SULQFLSDORIWKHÀUPDWWKHWLPHWKHGLVSXWH
arose and the arbitration can proceed. If the original respondent
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against the original respondent because the duty to arbitrate is
personal.
32. Can the sample forms contained in the Code
of Ethics and Arbitration Manual
be amended/changed?
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DQGWRDQ\VSHFLDOUHTXLUHPHQWVHVWDEOLVKHGE\WKH%RDUG
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or an arbitration request if the complainant
withdraws the complaint/request?
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GLVPLVVHGWKHHWKLFVFRPSODLQWDUELWUDWLRQUHTXHVWDQGWKH
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33. If a party appeals an ethics decision or
requests procedural review of an arbitration
hearing, do they have the right to counsel?
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34. If a party who has appealed an ethics
decision or requested procedural review of
an arbitration hearing fails to appear, must
the board of directors proceed with the
appeal hearing (or procedural review) in the
absence of the involved party?
A board may proceed with an ethics appeal or request for
SURFHGXUDOUHYLHZLIWKHSDUW\ZKRLQVWLWXWHGWKHDSSHDORU
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30. If either an ethics complaint or arbitration
request is dismissed, in whole or in part,
what information should be included in the
dismissal notice?
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dismissal shall also inform the complainant of their opportunity
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Code of Ethics and Arbitration Manual
31. If a REALTOR® principal resigns or otherwise
causes his or her REALTOR® membership to
terminate and there is a current arbitration
request pending against him or her, can a
complainant amend an arbitration request to
name the new REALTOR® principal?
35. If a procedural review (arbitration) is to be
conducted and a REALTOR® (non-principal)
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herself unable to attend, must he or she be
granted a postponement?
1R:KLOHDREALTOR®QRQSULQFLSDODOVRKDVDÀQDQFLDO
LQWHUHVWLQWKHGLVSXWHDQGZKRLVDIÀOLDWHGZLWKDSDUW\WRDQ
arbitration hearing has the right to attend the arbitration hearing
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QRWDSDUW\WRWKHSURFHHGLQJVDQGWKHSURFHHGLQJVPD\WDNHSODFH
in his or her absence.
Statements of Professional Standards Policy
Approved by the Professional Standards Committee and the ®Board of Directors
of the NATIONAL ASSOCIATION OF REALTORS
1. Article 17, Code of Ethics
present throughout the proceedings and to participate but are
not considered to be parties. (Amended 5/01)
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GLVSXWHVDVGHÀQHGLQ6WDQGDUGRI3UDFWLFHEHWZHHQ
REALTORS®SULQFLSDOVDVVRFLDWHGZLWKGLIIHUHQWÀUPVDULVLQJ
out of their relationship as REALTORS®WKHREALTORS® shall
PHGLDWHWKHGLVSXWHLIWKH%RDUGUHTXLUHVLWVPHPEHUVWR
PHGLDWH,IWKHGLVSXWHLVQRWUHVROYHGWKURXJKPHGLDWLRQRULI
PHGLDWLRQLVQRWUHTXLUHGREALTORS® shall submit the dispute
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rather than litigate the matter.
,QWKHHYHQWFOLHQWVRIREALTORS® wish to mediate or arbitrate
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REALTORS® shall mediate or arbitrate those disputes in accordance
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bound by any resulting agreement or award.
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contemplated by this Article includes the obligation of
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(Amended 1/12)
2. Circumstances under which REALTORS® must
submit to arbitration*
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HYHU\REALTOR®SULQFLSDOZKRSDUWLFLSDWHVLQD%RDUG·V
0/6ZKHUHWKH\GRQRWKROG%RDUGPHPEHUVKLSDQGHYHU\
QRQPHPEHUEURNHURUOLFHQVHGRUFHUWLÀHGDSSUDLVHUZKR
LVD3DUWLFLSDQWLQWKH%RDUG·V0/6VKDOOKDYHWKHULJKW
WRLQYRNHWKH%RDUG·VDUELWUDWLRQIDFLOLWLHVLQDQ\GLVSXWH
arising out of the real estate business with a REALTOR®
SULQFLSDOLQDQRWKHUUHDOHVWDWHÀUPRUZLWKWKDWÀUPRU
ERWKRUQRQPHPEHUEURNHUDSSUDLVHURUWKHLUÀUPRUERWK
ZKRLVD3DUWLFLSDQWLQWKH%RDUG·V0/6(Amended 5/01)
E $REALTOR® other than a principal or a REALTOR-ASSOCIATE®
VKDOOKDYHWKHULJKWWRLQYRNHWKHDUELWUDWLRQIDFLOLWLHVRI
WKH %RDUG LQ D EXVLQHVV GLVSXWH ZLWK D R EALTOR ® or
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the REALTOR® SULQFLSDOZLWKZKRPKHLVDVVRFLDWHGMRLQV
LQWKHDUELWUDWLRQUHTXHVWDQGUHTXHVWVDUELWUDWLRQZLWKWKH
REALTOR®SULQFLSDORIWKHRWKHUÀUPRUZLWKWKHLUÀUPRU
ERWK$UELWUDWLRQLQVXFKFDVHVVKDOOEHEHWZHHQWKHREALTOR®
SULQFLSDOVRUWKHLUÀUPVRUERWKREALTOR® nonprincipals
and REALTOR-ASSOCIATE®SZKRLQYRNHDUELWUDWLRQLQWKLV
PDQQHURUZKRDUHDIÀOLDWHGZLWKDUHVSRQGHQWDQGKDYHD
YHVWHGÀQDQFLDOLQWHUHVWLQWKHRXWFRPHKDYHWKHULJKWWREH
5HIHUWRPart Ten,6HFWLRQRIWKLV0DQXDO
F $FOLHQWRIDREALTOR®SULQFLSDOPD\LQYRNHWKHIDFLOLWLHV
RIWKH%RDUGLQDEXVLQHVVGLVSXWHZLWKDR EALTOR ®
principal or the REALTOR®·VÀUPRUERWKDULVLQJRXWRI
DQDJHQF\UHODWLRQVKLSSURYLGHGWKHFOLHQWDJUHHVWREH
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decision. (Amended 05/01)
3. Circumstances under which arbitration is
contingent upon the REALTOR®ҋVYROXQWDU\
participation*
D REALTORS® and REALTOR-ASSOCIATE®s who are or were
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the arbitration shall automatically terminate unless either of
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apply. The sole question of fact for the Directors to decide will
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its action. (Revised 11/11)
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of noncompliance with the commitment to arbitrate. A refusal
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