Dispute Resolution - REALTOR® Members

Ethics Complaints can be filed against REALTORS®. As a part of their membership, REALTORS® subscribe to a strict Code of Ethics that governs their conduct with the public, clients, and other REALTORS®. Not all real estate licensees are REALTORS®; if the agent is not a REALTOR®, contact the Board of Registration of Real Estate Brokers and Salespersons.

A complaint should be filed with the Massachusetts Association of REALTORS® if the REALTOR® belongs to one of these local associations:

Berkshire Board of REALTORS®

Cape Cod and Islands Association of REALTORS®

Greater Newburyport Association of REALTORS®

North Central Association of REALTORS®

North Shore REALTORS®

REALTOR® Association of Central Massachusetts

REALTOR® Association of Pioneer Valley

REALTOR® Association of Southeastern Massachusetts

South Shore REALTORS®

Disputes with REALTORS® from the Northeast Association of REALTORS®, and Greater Boston Association of REALTORS®, should be directed to the local association.

Yes, Form #E-1. This form must be completed in its entirety specifically listing the parties and the Article or Articles of the Code of Ethics that were allegedly violated. Standards of Practice may be included; however, Hearing panels decide whether the Articles expressly cited have been violated, not whether Standards of Practice or Case Interpretations were violated.

This Form must also be accompanied by a narrative statement from the complainant describing the circumstances that lead to the belief that the Code of Ethics may have been violated. The complaint must be filed within 180 days after the facts constituting the matter complained of could have been known in the exercise of reasonable diligence or within 180 days after the conclusion of the transaction, or event, whichever is later. If you have other documentation evidencing the alleged conduct, this can be included as well.

The Association or an assigned member of the Grievance Committee may provide technical assistance in preparing a complaint in proper form and with proper content.

Yes. The complaint must be filed within 180 days after the facts constituting the matter complained of could have been known in the exercise of reasonable diligence or within 180 days after the conclusion of the transaction, or event, whichever is later.

Once the Ethics Complaint is received, it will be reviewed for general procedural compliance, confirming REALTOR® membership, time frame, etc. The complainant will be notified of the opportunity to conduct mediation, or an informal discussion with the help of a Mediator or Ombudsman prior to a more formal review by the Grievance Committee. Mediation is not mandatory but can help guide conversation between the parties in hopes of finding a resolution. Remember, many difficulties between real estate professionals result from misunderstanding, miscommunication, or lack of adequate communication. Open, constructive discussion can resolve outstanding questions or differences.

After the complaint is reviewed, and the parties have either attempted mediation or refused, the complaint is forwarded to the Chair of the Grievance Committee and Grievance Committee Members are notified to convene within 45 days of receipt. Often, the Grievance Committee will meet much sooner than this.  In order to review the complaint, at least five (5) members must be able to attend the meeting.

The Grievance Committee only reviews the complaint to consider if the complaint is procedurally sound and if the allegations, taken as true on their face, could result in a potential ethics violation: if so, they forward to the Professional Standards Committee for a Hearing.

If dismissed, the complainant has twenty (20) days to appeal to the Board of Directors. If the Grievance Committee moves the complaint forward to Hearing, the respondent is notified, provided a copy of the complaint and given fifteen (15) days to respond. Within five (5) days of receipt of that response, it must be forwarded to the complainant. After discussing availability with the parties, a Hearing is scheduled with not less than twenty-one (21) days’ notice.

The Grievance Committee is the initial screening body for Ethics Complaints. It does not conduct hearings, nor does it determine if a violation has occurred. The Grievance Committee determines if the allegations, taken as true on their face, could result in a potential ethics violation, a hearing is warranted.

When reviewing the Ethics Complaint, the Grievance Committee only conducts a preliminary evaluation as necessary to make decisions. Such as: Is the Complaint in acceptable form? Are necessary parties named? Is respondent a REALTOR® member? Was the Complaint filed within 180-day timeframe? Is there pending litigation? Should any article be eliminated? Should any be added? Is there any reason to conclude that the Board would be unable to provide an impartial Hearing Panel?

If the review is satisfactory, the complaint is forwarded  to the Professional Standards Chair to assemble a hearing panel.

Be sure to familiarize yourself with the procedures. See NAR’s Outline of Ethics Hearing for guidance.  Note that you have the right to counsel, to call witnesses and to challenge potential panel members.

Complainants have the burden of proving that the Code of Ethics has been violated by providing clear, strong and convincing evidence that will produce a firm belief as to the allegations. Make sure that you have your witnesses lined up if you intend to call them and have all of your documents and other evidence with you that you intend to present and organize your presentation in advance.

Remember that hearing panel members are volunteers with the objective to be fair, impartial and to determine, based on the evidence and testimony in front of them, what actually occurred and if those facts support a finding that the Article(s) cited in the complaint have been violated.

Code enforcement achieves a number of goals. Where REALTORS® are wrongly or mistakenly charged with unethical conduct, the hearing process provides personal and professional vindication. Where violations are found, the process educates members about their professional obligations and serves as a deterrent to future violations.

Discipline serves both as an educational device and as a punishment.  NAR’s Code of Ethics and Arbitration Manual authorizes a wide variety of sanctions that may be imposed ranging from letters of warning, attendance at educational sessions, fines, probation, suspension to expulsion from REALTOR® membership. There is no specific recommended discipline for certain offenses or violation; deference is given to the Hearing Panels.

Yes. If the Grievance Committee dismissed the complaint, the notice of dismissal must specify the reasons for dismissal. The complainant has 20 days from the transmittal of the dismissal notice to appeal to the Board of Directors. The complainant may not edit the record; however, they may explain in writing why they disagree with the Grievance Committee’s conclusion. They will convene within ten (10) days of receipt. The Board of Directors decision is final and will be transmitted to the parties within five (5) days of the decision.

The Hearing Panel decision is by simple majority vote and in a writing that contains findings of fact and a statement of disciplinary action recommended, if any. Remember, under no circumstances can the Board award money “damages” in an ethics proceeding. The Hearing Panel decision can be appealed to the Board of Directors on the same bases as dismissals by the Grievance Committee.

Yes. If you wish to move forward with filing for Arbitration, please submit the Request and Agreement to Arbitrate Form (Member Form) along with supporting documentation and a check for $500 made out to the Massachusetts Association of REALTORS®.

Yes. The fee for filing the Request for Arbitration is $500, made payable to the Massachusetts Association of REALTORS®, to be provided at the time of filing and sent to:

Massachusetts Association of REALTORS®

124 Washington St, Suite 302

Foxborough, MA 02034

If the Request for Arbitration is certified for a Hearing by the Grievance Committee, the respondent will also be required to send in a $500 deposit. It is the policy of MAR to return the prevailing party’s deposit.

The Request for Arbitration must be filed within 180 days after the conclusion of the transaction, or within  180 days of the facts giving rise to the dispute could have been known in the exercise of reasonable diligence, whichever is later.

Once the Request for Arbitration is received, it is reviewed for general procedural compliance; confirming REALTOR® membership, time frame, etc. The complainant will be notified of the opportunity to conduct mediation, or an informal discussion with the help of a Mediator or Ombudsman prior to a more formal review by the Grievance Committee. Mediation is not mandatory but can help guide conversation between the parties in hopes of finding a resolution. Remember, many difficulties between real estate professionals result from misunderstanding, miscommunication, or lack of adequate communication. Open, constructive discussion can resolve outstanding questions or differences.

After the request is reviewed, and the parties have either attempted mediation or refused, the complaint is forwarded to the Chair of the Grievance Committee and Grievance Committee Members are notified to convene within 45 days of receipt. In most cases, the Grievance Committee will meet much sooner than this.  In order to review the complaint, at least five (5) members must be able to attend the meeting.

The Grievance Committee only reviews the complaint to consider if the Complaint is procedurally sound and if the allegations, taken as true on their face, result in an arbitrable matter: if so, they forward to the Professional Standards Committee for a Hearing.

If the Grievance Committee moves the request forward to Hearing, the respondent(s) is notified, provided a copy of the complaint and given fifteen (15) days to respond. Within five (5) days of receipt of that response, it must be forwarded to the complainant. After discussing availability with the parties, a Hearing is scheduled with not less than 21 days’ notice.

The Grievance Committee is the initial screening body for Requests for Arbitration. The Committee does not conduct hearings, nor does it determine if the dispute, as stated, has occurred or if a member is owed money. The Grievance Committee determines if the allegations, taken as true on their face, could result in a business dispute with monies owed, a hearing is warranted.

When reviewing the Request for Arbitration, the Grievance Committee only conducts a preliminary evaluation as necessary to determine whether the matter should be forwarded to a Hearing PanelIs the request in acceptable form? Are necessary parties named? Is the complainant the principal broker? Is the respondent a REALTOR® member? Was the request filed within the 180-day timeframe? Is there pending litigation?  Is there any reason to conclude that the Board would be unable to provide an impartial Hearing Panel?

If the review is satisfactory, the request is forwarded to to the Professional Standards Chair to assemble a hearing panel.

Be sure to familiarize yourself with the procedures. See NAR’s Outline for Arbitration Hearing for guidance.  Specifically noting that you have the right to counsel, to call witnesses and to challenge potential panel members.

Complainants have the burden of proving, by a “preponderance of the evidence” – evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is; evidence, taken as a whole, that shows the facts sought to be proved are more probable than not.

Make sure that you have your witnesses lined up if you intend to call them and have all of your documents and other evidence with you that you intend to present and organize your presentation in advance.

Remember that hearing panel members are volunteers with the objective to be fair, impartial and to determine based on the evidence and testimony in front of them, what actually occurred and if those facts support a finding in favor of the complainant.

You can file both at the same time; and it is often wise to do so if you allege both a violation of the Articles of the Code of Ethics and a business dispute exists warranting arbitration to comply with the time constraints. When an ethics complaint and an arbitration request are filed at the same time arising out of the same facts and circumstances, the arbitration hearing shall be held first, and the ethics hearing shall be conducted by a different Hearing Panel after the conclusion of the arbitration hearing.

The award of the arbitrators is made on the day of the hearing (or no later than 48 hours following the conclusion of the hearing. The award will be in writing and signed by a majority of the panel and state the amount of the award. Arbitration awards are binding and not subject to review or appeal. The award will be transmitted to the parties within five (5) days and the amount may not be greater than the amount in dispute and may not include punitive damages or attorney’s fees or interest.

While the award itself is binding, a party to an arbitration may appeal to the Board of Directors within 20 days to request procedural review only with respect to such alleged irregularities occurring in the conduct of the proceeding that may have deprived the party of fundamental “due process.” The non-prevailing party shall also have the same 20 days following transmittal of the award to notify that a legal challenge has been initiated as to the validity of the award. After this period passes, the award is final and binding.

NAR’s Arbitration Guidelines, created pursuant to Article 17 of the REALTOR® Code of Ethics, define procuring cause as “the uninterrupted series of causal events which results in the successful transaction.” In practice, the broker whose efforts set off that unbroken chain of events will be regarded as procuring cause.

To earn a commission, a broker must be the procuring cause of the sale. There is no one definitive factor to determine procuring cause but instead, it is the interplay of many factors.

Equality. The system must not discriminate procedurally between parties. If one party is entitled to counsel, then all are entitled. If notice is provided one, it must be provided for all. The essential requirement for Equality is that the system provide a “level playing field” for the disputants. Discrimination in appearance or fact is an anathema to the Equality required to satisfy due process.

Economy. The cost of access to the system must not be a barrier to its use or operate to the disadvantage of one or the other parties. This means that grievance and arbitration proceedings should not be made a Board profit center and, in fact, may have to become subsidized to assure open access.

Expedition. As “justice delayed is frequently justice denied,” there is an affirmative obligation on the part of the system to expedite ethics and arbitration proceedings. This does not foreclose orderly procedure with adequate time to ensure notice, time to prepare, opportunity to identify and gather witnesses, and otherwise develop facts and arguments. It does, however, foreclose dilatory tactics, unreasonable extension of time, and protraction of hearings.

Evidence. The system must be designed and function to elicit evidence, not assumptions; proof, not presumptions. While strict rules of evidence in the judicial sense do not apply, there must be control of what is admitted as relevant and judgment as to what is mere speculation and hearsay designed to prejudice rather than inform.

Equity. The system must produce decisions that reflect a sense and substance of “rightness” and “reasonableness.” In matters involving unethical conduct, the punishment should fit the offense. The judgment should reflect consideration of extenuating circumstances and a balancing of competing values and objectives. Moreover, the predictability, consistency, and uniformity of the system’s performance is an important measure of Equity.