Dispute ResolutionThe professional standards process is a very important part of a Board of REALTORS®, and helps to ensure honorable, faithful and competent service to clients, customers and other members of the public by enforcing the Code of Ethics. Disagreements still occur despite the best efforts of well intentioned REALTORS. In such cases, the Board has in place a set of procedures and options for resolving disputes. Many cases can be resolved with mediation or arbitration prior to a costly and lengthy litigation procedure. MediationMediation is a service provided by every board/association of REALTORS. Mediation brings the disputing parties together in an atmosphere conducive to dialogue and conciliation, encouraging them to work together to reach a mutually acceptable resolution. Experience has shown that 80% or more of the disputes that otherwise would be arbitrated can be resolved faster and more efficiently through mediation. This is a significant savings in time and expense for both the parties and for boards and associations. Mediation can also be a positive experience for those who participate because, rather than a "winner" and a "loser" being determined by a panel of arbitrators, in mediation the parties work together, guided by a mediator, to fashion their own solution. Mediation is frequently a "win-win" situation for everyone. The Board has mediation officers who act as facilitators or intermediaries. These are typically REALTORS who are experienced and adept in dispute resolution techniques. While mediators often have personal "styles", their primary objective is to help each party appreciate the position of the other party, then to move them forward toward an amicable resolution.
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Arbitration is the process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.
Arbitration of business disputes is provided as a service to members of the Spanish Peaks Board of REALTORS® as set forth in Article 17 of the Code of Ethics. Arbitration by Boards of REALTORS® is a process authorized by law in virtually every state. Arbitration is an economical, efficient, and expeditious alternative to civil litigation.
During arbitration, the parties present their cases to a panel of arbitrators whose decision is final and binding. While less formal, faster, and less expensive than litigation, arbitration is not without cost in both time and money on the part of the parties. Substantial board human and financial resources are also consumed in providing this service to members.
A frequently asked question is whether all disagreements or disputes (particularly those between principal brokers in different firms) must be arbitrated? The simple answer is no. Arbitration of disputes, including those that fall under the "mandatory" category is required only when a party with standing invokes the arbitration process and it is determined by the Grievance Committee that an arbitrable dispute exists and that arbitration of the dispute is mandatory.
Comparison of Mediation and Arbitration
Mediation |
Arbitration |
| Low-cost | Moderate cost |
| Little delay | Moderate delay |
| Maximum range-solutions | Win/lose/split |
| Parties control outcome | Arbitrators control outcome |
| Uncertain closure | Definite closure |
| Maintain/improve relationship | May harm relationship |
source: colorado Association of Realtors
File a Complaint
If you want to file an ethics complaint, you will need to fill out the Complaint Form (PDF), specify what Article of the Code of Ethics you feel was violated and return the form with all the pertinent documentation to the Board. If your situation requires arbitration, or mediation, then please complete the Arbitration Request Form, and return it with an explanation of the dispute and supporting documentation.
For a detailed listing of the filing process and what to expect at each stage, visit the Colorado Association of Realtors "Before You File" web page.
Resources:
Download the Ethics Complaint Form as a PDF or as a MS Word document
Download the guide "Before you File" as a PDF or as a MS Word document
Complaints Q&A
Q. Do you have a complaint concerning a REALTOR®?
A. The first thing that must be determined in processing a Complaint with a Board of REALTORS® is whether the real estate agent involved is a REALTOR®. Not all real estate agents are REALTORS®. Only those who belong to a Board of REALTORS® can use the term REALTOR®. When joining a Board, all members agree to abide by the Code of Ethics as a continuing condition of membership. It is because of their obligation to abide by the Code of Ethics that you can file a complaint at a Board of REALTORS®Q. Is your complaint ethics or arbitration?
A. You may have to consider whether your complaint concerns an ethical violation or is a dispute requiring arbitration/mediation. An ethics complaint charges that a REALTOR has violated on or more Articles of the Code of Ethics. Arbitration is a means of resolving a monetary dispute resulting from a transaction. If the situation concerns both ethics and arbitration, the Board will handle the two separately.
Q. Who may file an ethics complaint?
A. Anyone. Any person, whether a member or not, may file a complaint against a Board member alleging a violation of the Code of Ethics, providing the complaint:
- is in writing
- is signed by the complainant
- states the facts surrounding the case
- is filed within 180 days after the facts become known
- pertains to the Articles of the REALTOR® Code of Ethics.
The complainant may file a complaint from any location but the complaint must be filed with the Board having jurisdiction over the individual named in the complaint.
Q. Who may file an arbitration request?
A. REALTORS and non-resident members of a REAL TOR Board who are principal brokers, REALTORS, REALTOR ASSOCIATES or non resident members who are not principals, provided the principal broker joins in the request, and Clients or customers of the REALTOR.
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