According to Section 44 of the National Association of REALTORS® Code of Ethics and Arbitration Manual, an arbitrable matter exists when there is a monetary dispute between two managing brokers of two separate offices as it relates to co-op commissions. By becoming and remaining a member of the Chicago Association of REALTORS®, every member agrees to submit to arbitration by the Board’s facilities as defined in Article 17 of the Code of Ethics.
What do I need to include to file for Arbitration?
In order for our Grievance Committee to properly review your complaint, please include the following:
- A $500 filing fee (CAR Staff will provide link to pay online after submission. The filing fee is required before the Grievance Committee reviews the request.)
- Names of all appropriate parties
- Event dates, so that Grievance can determine if the request is filed on time
- A timeline of events leading up to the closing
- Please note: the complaint must be filed and signed by the Designated Managing Broker!
What will happen next?
After filing, your case will go to the Grievance Committee, who reviews each case to determine if it should go to a hearing (kind of like a grand jury). This is why it’s important that you supply enough information for the Grievance Committee to determine if a co-op (between two brokerages) dispute exists.
Mediation Before Arbitration
CAR requires a mandatory mediation session prior to an arbitration hearing. Mediation allows for an informal conversation and an opportunity for each side to understand the other parties’ position. Therefore, once the Grievance Committee has reviewed your arbitration request and determined that an arbitrable matter exists, a mediation conference will be scheduled. Often, an agreement is reached during mediation which is acceptable to both sides. If the mediation conference is not successful, an arbitration hearing will then be scheduled. As we have realized a 90% success rate for mediations, we hope that we can help you avoid arbitration!
- General instructions for filing a complaint
- A Step by Step Guide to an Arbitration Request
- Arbitration Guidelines
- Request & Agreement to Arbitrate Sample
- Mandatory Mediation
After clicking the link, please allow up to 60 seconds for the filing system to load
Reminder: If this is a commission dispute between two separate firms, the arbitration request must be filed by the Designated Managing Broker.