Facts: Team leader continues to increase the size of her real estate team. As the team grows in size, so too does the number of disputes between the team leader and various team members. As such, the team leader wants to execute an agreement with all team members governing how such disputes will be addressed.

Issue: Can the team leader and team members execute an agreement governing how disputes will be resolved and, if so, what options are available?

Answer: See discussion.

Discussion:

Team leaders are encouraged to enter into agreements with each team member documenting the nature of their relationship. These agreements can and should include a dispute resolution provision.

To assist team leaders and team members in crafting such an agreement, Arizona REALTORS® has developed a Team Toolkit that includes a comprehensive list of provisions that the parties can use to draft a Team Leader / Member Agreement. Among the provisions provided is a dispute resolution provision that outlines various options:

The parties agree to mediate any dispute or claim arising out of or related to this Agreement.  All mediation costs shall be paid equally by the parties. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall be:

Submitted for binding arbitration with an agreed upon third-party arbitrator

Submitted for binding arbitration with the Arizona REALTORS® if the dispute involves entitlement to a commission or compensation Other _____________________________________________________________________________________________