As REALTORS®, we are guided professionally by the Code of Ethics, which ensures that we cooperate with one another and work in the best interest of our clients. This sets us apart from other real estate professionals.
Even with the best intentions, planning and preparation, internal disagreements may arise between REALTORS® and/or between REALTORS® and their clients.
With both informal and formal filing options, the Code of Ethics and our dispute resolution services provide you with opportunities to hold unethical conduct accountable and resolve compensation disputes efficiently and at little to no cost, rather than litigating these disputes through the courts.
So, what should you do if a dispute arises?
Open A Discussion with The Individual or Their Principal Broker
Many difficulties between real estate professionals (whether REALTORS® or not) result from misunderstanding, miscommunication or lack of adequate communication. If you have a problem with a real estate professional, you may want to speak with them or with a principal broker in their firm. Open, constructive discussion often resolves questions or differences, eliminating the need for further action.
If, after discussing matters with your real estate professional or a principal broker in that firm, you are still not satisfied, it’s time to contact the association.
Know Your Options: Informal and Formal
You have multiple options to explore for dispute resolution.
Informal: The Ombudsman program serves as an intermediary in disputes or questions that relate to real estate transactions. This free service allows the Chicago Association of REALTORS® to tap the expertise of experienced real estate professionals who are trained in problem-solving. These professionals, called ombudsmen, can provide guidance on what steps to take, suggest resources for additional help, and in some cases can act as an intermediary in resolving basic problems.
The Chicago Association of REALTORS® has found many disputes are easy to resolve and do not require a formal hearing process. Since a formal hearing process can be lengthy, this process may be able to offer speedier resolution to many disputes. Typically, those requesting assistance of an ombudsman are those who need immediate assistance with a real estate-related dispute or issue. Many times, those involved hit a wall and emotions get the best of them. It is during these times that having an intermediary to assist helps move the transaction forward. The ombudsman will determine the needs of the parties involved and help to achieve that goal.
Formal: Filing An Ethics Complaint
If, after taking these steps, you still feel you have a grievance, you have the option to file an ethics complaint. You will want to keep in mind that:
- Only REALTORS® and REALTOR® associates are subject to the Code of Ethics of the National Association of REALTORS®.
- If the real estate professional (or their broker) you are dealing with is not a REALTOR®, your only recourse may be the state real estate licensing authority or the courts.
- The association determines whether the REALTORS® Code oF Ethics has been violated, not whether the law or real estate regulations have been broken. Those decisions can only be made by the licensing authorities or the courts.
- The association can discipline REALTORS® for violating the Code of Ethics. Typical forms of discipline include attendance at courses and seminars designed to increase REALTORS®’ understanding of the ethical duties or other responsibilities of real estate professionals. Additional examples of authorized discipline are a letter of reprimand
and appropriate fines. For serious or repeated violations, a REALTOR®’s membership can be suspended or terminated.
Procedures For Filing a Complaint:
Here are some general principles to keep in mind.
- Ethics complaints must be filed with us within 180 days from the time a complainant knew (or reasonably should have known) that potentially unethical conduct took place or within 180 days after the conclusion of the transaction or event, whichever is later.
- The REALTORS® Code of Ethics consists of 17 Articles. The duties imposed by many of the Articles are explained and illustrated through accompanying Standards of Practice or case interpretations. Your complaint must cite one or more of the 17 Articles of the Code of Ethics which may have been violated.
- Your complaint should include a narrative description of the circumstances that led you to believe the Code of Ethics may have been violated.
Once the complaint is filed, the Grievance Committee reviews the complaint and determines whether or not it should be moved to a hearing. If it is moved to a hearing, both sides will have the opportunity to present evidence and testimony to a hearing panel. The hearing panel will determine if an Article from the Code of Ethics was violated. If a violation is found by a majority of the hearing panel, they will determine the appropriate discipline.
Through these services, we help our members maintain their relationships with other professionals, hold REALTORS® accountable to the Code of Ethics and offer a quick and cost-effective way to handle disputes outside of the court system.