Article 17
In the event of contractual disputes or specific non-contractual
disputes as defined in Standard of Practice 17-4 between REALTORS®
(principals) associated with different firms, arising out of their
relationship as REALTORS®, the REALTORS® shall submit the dispute to
arbitration in accordance with the regulations of their Board or Boards
rather than litigate the matter.
In the event clients of REALTORS® wish to arbitrate contractual disputes
arising out of real estate transactions, REALTORS® shall arbitrate those
disputes in accordance with the regulations of their Board, provided the
clients agree to be bound by the decision.
The obligation to participate in arbitration contemplated by this
Article includes the obligation of REALTORS® (principals) to cause their
firms to arbitrate and be bound by any award. (Amended 1/01)
- Standard of Practice 17-1
The filing of litigation and refusal to withdraw from it by REALTORS® in
an arbitrable matter constitutes a refusal to arbitrate. (Adopted 2/86)
- Standard of Practice 17-2
Article 17 does not require REALTORS® to arbitrate in those
circumstances when all parties to the dispute advise the Board in
writing that they choose not to arbitrate before the Board. (Amended
1/93)
- Standard of Practice 17-3
REALTORS®, when acting solely as principals in a real estate
transaction, are not obligated to arbitrate disputes with other
REALTORS® absent a specific written agreement to the contrary. (Adopted
1/96)
- Standard of Practice 17-4
Specific non-contractual disputes that are subject to arbitration
pursuant to Article 17 are:
- Where a listing broker has compensated a cooperating broker and
another cooperating broker subsequently claims to be the procuring cause
of the sale or lease. In such cases the complainant may name the first
cooperating broker as respondent and arbitration may proceed without the
listing broker being named as a respondent. Alternatively, if the
complaint is brought against the listing broker, the listing broker may
name the first cooperating broker as a third-party respondent. In either
instance the decision of the hearing panel as to procuring cause shall
be conclusive with respect to all current or subsequent claims of the
parties for compensation arising out of the underlying cooperative
transaction. (Adopted 1/97)
- Where a buyer or tenant representative is compensated by the seller
or landlord, and not by the listing broker, and the listing broker, as a
result, reduces the commission owed by the seller or landlord and,
subsequent to such actions, another cooperating broker claims to be the
procuring cause of sale or lease. In such cases the complainant may name
the first cooperating broker as respondent and arbitration may proceed
without the listing broker being named as a respondent. Alternatively,
if the complaint is brought against the listing broker, the listing
broker may name the first cooperating broker as a third-party
respondent. In either instance the decision of the hearing panel as to
procuring cause shall be conclusive with respect to all current or
subsequent claims of the parties for compensation arising out of the
underlying cooperative transaction. (Adopted 1/97)
- Where a buyer or tenant representative is compensated by the buyer or
tenant and, as a result, the listing broker reduces the commission owed
by the seller or landlord and, subsequent to such actions, another
cooperating broker claims to be the procuring cause of sale or lease. In
such cases the complainant may name the first cooperating broker as
respondent and arbitration may proceed without the listing broker being
named as a respondent. Alternatively, if the complaint is brought
against the listing broker, the listing broker may name the first
cooperating broker as a third-party respondent. In either instance the
decision of the hearing panel as to procuring cause shall be conclusive
with respect to all current or subsequent claims of the parties for
compensation arising out of the underlying cooperative transaction.
(Adopted 1/97)
- Where two or more listing brokers claim entitlement to compensation
pursuant to open listings with a seller or landlord who agrees to
participate in arbitration (or who requests arbitration) and who agrees
to be bound by the decision. In cases where one of the listing brokers
has been compensated by the seller or landlord, the other listing
broker, as complainant, may name the first listing broker as respondent
and arbitration may proceed between the brokers. (Adopted 1/97)
- Where a buyer or tenant representative is compensated by the seller
or landlord, and not by the listing broker, and the listing broker, as a
result, reduces the commission owed by the seller or landlord and,
subsequent to such actions, claims to be the procuring cause of sale or
lease. In such cases arbitration shall be between the listing broker and
the buyer or tenant representative and the amount in dispute is limited
to the amount of the reduction of commission to which the listing broker
agreed. (Adopted 1/05)
|
