Introduction
REALTOR® associations are responsible for enforcing the REALTOR®
Code of Ethics. The Code of
Ethics imposes duties above and beyond those imposed by law or
regulation and apply only to real estate professionals who choose
to become REALTORS®. In order to find out whether and how you
can file a complaint against a REALTOR®, continue reading.
If you have a complaint about a REALTOR®,
read through these steps:
The Process
STEP ONE. Talk to your agent or broker.
If you have a problem with a real estate professional, you may want to
speak with them directly or with a principal broker or manager in the
agent's firm. Many difficulties between real estate professionals
(whether REALTORS® or not) and their clients result from
misunderstanding, miscommunication, or lack of adequate communication.
Open, constructive discussion often resolves questions or differences,
eliminating the need for further action. (If you aren't sure who your
agent's broker or manager is, call the agent's office number to inquire
or call AAR at 602/248-7787 or 800/426-7274.)
STEP TWO. Call the REALTOR® Association.
If you are still not satisfied, you may want to contact the Arizona
Association of REALTORS® . The Association has informal
dispute resolving processes available to consumers (e.g., ombudsmen,
mediation, etc.) that can be utilized prior to filing a formal
complaint.
STEP THREE. What's involved?
If, after taking these steps, you still feel you have a complaint, you
may want to consider filing a formal ethics complaint. You will want to
keep in mind that:
- Only REALTORS® and REALTOR ASSOCIATE®s
are subject to the Code of
Ethics of the NATIONAL ASSOCIATION OF REALTORS®
- If the real estate professional (or his or her
broker) you are dealing with is not a REALTOR®, options may
include contacting the state real estate licensing authority at
www.azre.gov/CONTACT_US/Documents/Contact_Info.html
or 602/468-1414, or the courts.
- The association of REALTORS® determines
whether the 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.
- REALTOR® associations 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. REALTORS®
may also be reprimanded, fined, or their membership can be suspended
or terminated for serious or repeated violations. Associations of
REALTORS® cannot award "punitive damages" for violations of
the Code of Ethics and cannot suspend or revoke a real estate
professional's license.
- The primary emphasis of discipline for ethical
lapses is educational, to create a heightened awareness of and
appreciation for the duties the Code imposes. At the same time, more
severe forms of discipline, including fines, suspension, termination
of membership may be imposed for serious or repeated violations.
- At this point, all parties to the complaint will be
given the opportunity to mediate the complaint. For details about
ethics mediation go to
The
Ethics Mediation Process.
STEP FOUR. Filing the Ethics Complaint.
The Arizona Association administers the complaint process for all but
one of Arizona's 22 local associations and can help you through the
process. You can obtain the forms and guidance online (below) or by
calling directly at 602.248.7787 or 1.800.426.7274.
Ethics complaint form - Print
Ethics complaint form – Fillable then print
Here are some general principles to keep in mind as
you begin the process:
- Ethics complaints must be filed with the
appropriate REALTOR® association 180 days from the time a
complainant knew (or reasonably could have known) that potentially
unethical conduct took place.
- The REALTOR®
Code of Ethics consists of
seventeen (17) Articles. The duties imposed by many of the Articles
are explained and illustrated through accompanying Standards of
Practice or case interpretations.
- Your complaint should include a narrative
description of the circumstances that lead you to believe the Code of
Ethics may have been violated. Please be as specific as possible about
the actions that the REALTOR® took or did not take that you
believe were unethical.
- Your complaint must cite one or more of the
Articles of the Code of Ethics that may have been violated by the
actions (or inactions) you have identified as potentially unethical.
Hearing Panels decide whether the Articles expressly cited in
complaints were violated—not whether Standards of Practice or case
interpretations were violated.
STEP FIVE. Initial Review
Your complaint will be reviewed by the
association's Grievance Committee. Their job is to review complaints to
determine if the allegations made, if taken as true, might support a
violation of the Article(s) cited in the complaint.
- If the Grievance Committee dismisses your
complaint, it does not mean they do not believe you. Rather, it means
that they do not feel that your allegations would support a Hearing
Panel's conclusion that the Article(s) cited in your complaint had
been violated. Before you actually file the complaint, review your
complaint to see if you cited an Article appropriate to your
allegations.
- If the Grievance Committee forwards your complaint
for hearing, that does not mean they have decided the
Code of Ethics has been
violated. Rather, it means they feel that if what you allege in your
complaint is found by the Hearing Panel to have occurred, that panel
may have reason to find that a violation of the Code of Ethics
occurred.
- If your complaint is dismissed as not requiring a
hearing, you can appeal that dismissal to an appeal panel of the
association.
Filing the complaint.
If
you are ready to file your complaint you can send it to:
Carole Ridley
Arizona Association of REALTORS®
255 East Osborn, Suite 200
Phoenix, AZ 85012
STEP SIX. Preparing for the Hearing
If the Grievance Committee forwards your case for a
hearing, you'll want to familiarize yourself with the hearing
procedures that will be followed. In particular, you will want to know
about challenging potential panel members, your right to counsel,
calling witnesses, and the burdens and standards of proof that apply.
- Complainants have the ultimate responsibility
("burden") of proving that the
Code of Ethics has been violated. The standard of proof that must
be met is "dear, strong and convincing," defined as "...that measure
or degree of proof which will produce a firm belief or conviction as
to the allegations sought to be established." Consistent with American
jurisprudence, respondents are considered innocent unless proven to
have violated the Code of Ethics.
- Be sure that your witnesses and counsel will be
available on the day of the hearing.
- Be sure you have all the documents and other
evidence you need to present your case.
- Organize your presentation in advance. Know what
you are going to say and be prepared to demonstrate what happened and
how you believe the Code of Ethics was violated.
STEP SEVEN. At the Hearing
- Appreciate that panel members are unpaid volunteers
giving their time as an act of public service. Their objective is to
be fair, unbiased, and impartial; to determine, based on the evidence
and testimony presented to them, what actually occurred; and to
determine whether the facts as they find them support a finding that
the Article(s) charged has been violated.
- Hearing Panels cannot conclude that an Article of
the Code has been violated unless that Article(s) is specifically
cited in the complaint.
- Keep your presentation concise, factual, and to the
point. Your task is to demonstrate what happened (or what should have
happened but did not), and how the facts support a violation of the
Article(s) charged in the complaint.
STEP EIGHT. After the Hearing
You will receive the Hearing Panel's decision in the mail. When you receive the
decision, review it carefully.
- Findings of fact are the conclusions of impartial
panel members based on their reasoned assessment of all of the
evidence and testimony presented during the hearing. Findings of fact
are not appealable.
- If you believe the hearing process was seriously
flawed to the extent you were denied a full and fair hearing, there
are appellate procedures that can be invoked. The fact that a Hearing
Panel found no violation is not appealable.
- Refer to the procedures used by the association for
detailed information on the bases and time limits for appealing a
decision or requesting a rehearing.
- Rehearings are generally granted only when
newly-discovered evidence comes to light that
(a) could not reasonably have been discovered and produced at the
original hearing and
(b) that may have had a bearing on the hearing panel's decision.
- Appeals brought by ethics respondents must be based
on
(a) a perceived misapplication or misinterpretation of one or more
Articles of the Code of Ethics,
(b) a procedural deficiency or failure of due process, or
(c) the nature or gravity of the discipline proposed by the Hearing
Panel.
- Appeals brought by ethics complainants are limited
to procedural deficiencies or failure of due process that may have
prevented a full and fair hearing.
CONCLUSION
Many ethics complaints result from misunderstanding or
a failure in communication. Before filing an ethics complaint, make
reasonable efforts to communicate with your real estate professional or
a principal broker in the firm. If these efforts are not fruitful, the
association of REALTORS® can give you the procedures and
forms necessary to file an ethics complaint.
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