Monetary Disputes with a REALTOR®
Arbitration facilities are provided by the REALTOR® association as a service to its members. Arbitration is not a disciplinary proceeding nor does it award damages. There are certain disputes that REALTORS® are obligated to arbitrate as a part of their membership duties.
Be aware that not every situation may be arbitrated at a REALTOR® association. Most disputes with clients or customers do not fall under the association’s jurisdiction and must be handled through the civil courts. Also, disputes involving clients or customers require that the client or customer sign an agreement to arbitrate and to be bound by the arbitration, which means further legal action would most likely be precluded.
Types of disputes that cannot be arbitrated
Types of disputes that cannot be arbitrated at a REALTOR® association include disputes involving damages that could result from a REALTOR®’s alleged error, misrepresentation or other inappropriate action. This type of monetary claim would usually need to be handled through other processes, such as the courts or through informal settlement. A real estate attorney may need to be consulted. For more information on how to find a real estate attorney, you can refer to the Arizona Bar Association’s website, www.azbar.org.
Types of disputes that may be arbitrated
Types of disputes that may be arbitrated at a REALTOR® association must be those in which the REALTOR® promised to pay something, which means you and the REALTOR® must have agreed on some type of a specific obligation that if not met, the REALTOR® would be obligated to pay something. For instance, if your buyer’s agent agreed to purchase a lighting fixture for the house you are buying if the sellers took it with them, that would be a contractual matter and could be arbitrated.
Whether the dispute is one that can be processed by the association is determined by the Association’s Grievance Committee.
Contractual or specific non-contractual disputes regarding compensation may be a REALTOR® obligation according to Article 17 of the Code of Ethics.
To find out more, call 602-248-7787 or 800-426-7274.
Filing a Mediation Request of a Business Dispute
AAR recommends you first consider mediation of a business dispute to resolve your issue prior to choosing arbitration.
Information about filing a request for mediation: Mediation of Business Disputes (Brochure)
Filing Arbitration Requests
When mediation efforts are not successful, or you know that mediation will not be effective in your pursuit, you may be obligated to file a formal request for arbitration. Below are some resources you can use to get started:
When mediation efforts are not successful or you know that mediation will not be effective in your pursuit, you may be obligated to file a formal request for arbitration.
Non-member disputes for compensation may be addressed with the agreement of both parties and the non-member agreement to abide by the AAR determination.
Note: Arizona Association of REALTORS® cannot affect an Arizona Real Estate License. If your pursuit is to affect an Arizona real estate agent’s license, refer to the Arizona Department of Real Estate (ADRE)