Mandatory Mediation

The C.A.R. Board of Directors has now adopted the National Association of REALTORS® mandatory mediation requirement which requires that all parties who file for mandatory arbitration attempt to resolve their dispute through mediation prior to going to arbitration. As we have seen an over 90% success rate in resolving commission disputes through mediation, we are extremely excited for this new change!

Beginning October 1st, any arbitration request filed at C.A.R. and approved by our Grievance Committee will have a mediation conference scheduled. If the conference is not successful, an arbitration hearing will then be scheduled. There are a plethora of advantages to choosing mediation over arbitration, including: maintaining positive working relationships, as well as saving time and money. Please see below for additional advantages.

Mediation

Arbitration

Informal meeting (ideally it is between the broker/manager) of the two firms and one mediation officer.

Formal hearing with witnesses, attorneys, three to five panel members, formal statements.

Discussion between the parties.

Formal swearing in, testimony.

All parties agree to the decision.
Win-Win
Relationship has opportunity to stay in tact.

One party will be entitled to the commission.
Win-Lose
Only the prevailing party will be happy.

If an agreement can NOT be reached between the parties the issue will be sent to a hearing, however, no discussion at the mediation will be admissible at the formal hearing.

The panel decides who gets the money.
No appeal - you get only one chance.

Leave knowing the results.
1 - 2 months for resolve.
No charge if resolved.

Must wait for the results to be mailed as certified mail.
4 - 6 months for resolve.
$500 filing fee per party.

Mediation Mandatory. It must be understood by all parties that participation in mediation procedures is mandatory. 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 by the Mediation Officer that was not accepted will not be introduced as evidence nor considered in any manner should the matter require arbitration by the Board’s Professional 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 judicially enforced by a court of competent jurisdiction.

Request for Mediation

File your Mediation Request Online Here

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