PROFESSIONAL STANDARDS – FAQS

The Professional Standards process is set forth by the National Association of REALTORS® in the Code of Ethics and Arbitration Manual.

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.

The ethics complaints process gives REALTORS® as well as members of the public, a chance to report unethical behavior, and allows REALTORS® to arbitrate their commission disputes.

Click here to review an online copy of the Code of Ethics. You may also call the Association at (312) 803-4900 and ask to speak to the Professional Standards Department, although please keep in mind: while the Professional Standards Department is available for help in filing a complaint or request to arbitrate, they cannot tell you if your complaint holds merit. They may refer you to other programs better suited to your particular circumstance.

While our system mirrors our judicial system, we do not follow the same rules. Therefore, we are unable to award any monetary damages to any party filing an ethics complaint.

Under the Professional Standards section of our website, there are forms available to you to file your complaint. Otherwise, you may contact the Association for forms to start the process of your complaint. You will send your complaint back to the Association for the Grievance Committee to review.

The Committee asks that you file your complaint based on Articles of the Code of Ethics. These Articles should also be addressed in a narrative or summary of events leading up to why you feel a REALTOR® violated the specific Articles you have cited.

Keep in mind:

• The Grievance Committee has the right to add, delete and amend your complaint.
• They also have the authority to dismiss your complaint if they feel that it is without merit based on the Code of Ethics.
• If your complaint is dismissed, and you still feel that a REALTOR® violated a particular Article, you will have the opportunity to appeal their decision to the Board of Directors.

Under the Professional Standards section of our website, there are forms available to you to file for arbitration. Otherwise, you may contact the Association for forms to start the process of arbitration.

Please read and fill out the forms completely to eliminate the need to amend the complaint later, which will result in lengthy delays in processing. You will note that a $500 filing fee is required. You must send this filing fee along with your request; your request will not proceed without it.  You will also need to submit a narrative or transcription of events leading up to your request for arbitration.

After receipt of the full complaint, the Grievance Committee will then forward your complaint on, or dismiss it based on arbitrability. If your request is dismissed, you will have the opportunity to appeal to the Board of Directors.

You will receive an amended complaint form with the additional Article(s) included from the Professional Standards Administrator. Please review these Articles.

• If you do not agree with the additions, you may file an appeal to the Board of Directors.
• Otherwise, please sign the complaint form indicating that you agree with the additions, and your complaint will be forwarded to the respondent.

If after the Articles have been added, you would like to address them in your complaint, you may send additional information to the Professional Standards Administrator to be added to your complaint.

You will receive an amended complaint form with the remaining Article(s) the Grievance Committee decided to keep.

• If you agree to the dismissal of the Article(s), then sign the form and send it back to the Professional Standards Administrator, your complaint will then be forwarded to the respondent.
• If you do not agree with the dismissal of the Article(s), you may appeal the dismissal to the Board of Directors. Fill out the appeal form included with the amended form, and it will be forwarded to the Board of Directors at their next meeting. No additional information may be added or attached to the form. Keep in mind: the Directors shall consider only the information and documents considered by the Grievance Committee with the appeal and render its decision. You do not have the right to be present at the Directors meeting. They will review your appeal and will disseminate their decision to you through the Professional Standards Administrator. Their decision is final.

If the Grievance Committee concludes that the complaint is vague, overly general, does not allege violation of specific Article(s), or is otherwise insufficient on its face, the complaint shall be referred back to you accompanied by the Grievance Committee’s initial conclusions. The committee requests that you provide any additional documentation or narrative facts that may support your allegations prior to advancing to next steps.

If the Grievance Committee concludes that the allegations in the complaint, if taken as true, could not support a finding that the Code of Ethics has been violated, then the complaint shall be dismissed. You will be advised of the dismissal and of your right to appeal the dismissal to the Board of Directors; however, no additional information may be added or attached to the form. The Board of Directors will review your appeal at their next meeting. You do not have the right to be present at the Directors meeting. They will review your appeal and will disseminate their decision to you through the Professional Standards Administrator. Their decision is final.

Remember, arbitration is Managing Broker to Managing Broker; arbitration cannot proceed without a Managing Broker’s signature or presence at a hearing.

When filing for arbitration, it is important to remember who you are filing your complaint against. These parties are called the ‘respondents.’

On the first page of the form, you will notice that there are three lines in section three (3). This section is for whom you are filing your request against:

• Who is holding the commission?
• Who is disputing that you are entitled to the commission?

These BROKERS go here, as arbitration is Broker to Broker (REALTOR® principal). If there were any agents involved (REALTOR® non-principals), they would also be listed in this section.

Section four (4) is where you would put the amount of commission currently in dispute, and who is holding that commission.

In section seven (7), you will list the agent (REALTOR® non-principal) from your office that is involved in the dispute if they will be attending the hearing.

Please note: the complainant(s) must sign the form in order for arbitration to proceed. By signing this form, you agree to abide by the award that is rendered in this case. If you have any other questions, please contact the Association.

When part of the arbitration process, mediation is a part of the process and it is mandatory for the parties to attend. Mediation can also be filed on its own to resolve commission disputes, this is our associations preferred method of resolution.

Mediation is a process that would take place immediately after the complainant finishes filing with the association. All of our mediators have vast experience in real estate and have mediated an array of disputes. In filing for mediation, you are going to experience an alternative to arbitration in which the parties (you) come to an agreement together. The mediator only makes suggestions, where a hearing panel will make the decision for you, all or nothing. Through mediation, parties generally walk out with relationships still intact, and good feelings about the Professional Standards process. Where arbitration can be lengthy and rigid, mediation is quick and casual.

If your arbitration request is determined to be an arbitrable issue by the Grievance Committee, and if both parties are members of CAR, mediation will be a mandatory part of the process. A mediation session will take place between both parties in an attempt to resolve the dispute. The parties are not obligated to come to a resolution; they are only obligated to attend the session. Should you go to mediation and not come to a conclusion, an arbitration hearing date will be set.