By becoming a member, every REALTOR® binds himself or herself and agrees to submit to arbitration all disputes as defined by Article 17 of the Code of Ethics.
The duty of REALTORS® to arbitrate is based in the Code of Ethics, specifically Article 17 which provides:
- 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.
- 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.
Advantages to Alternative Dispute Resolution
- It solves problems, rather than simply deciding the dispute.
- It resolves disputes quickly, usually within weeks, rather than years.
- It prevents future conflicts, as well as resolving present ones.
- It emphasizes constructive relationships, rather than adversarial positions.
- Customer relationships survive, so goodwill and potential referrals are preserved.
- It allows parties to negotiate based on their interest, to understand their own needs, and decide what they are willing or not willing to concede.
- It is confidential, not a public proceeding or a matter of public record.
- It allows those most familiar with the problem, the disputing parties, to create the solution, which ensures that the solution will work.