Filing an Arbitration

How to File an Arbitration

Arbitration is an alternative dispute resolution program that is offered as a service to REALTOR® members which provides a forum for resolving business disputes in lieu of litigation. Arbitrations are completely separate from ethics hearings. Arbitrations are held when both agents acted legally and ethically, but a legitimate dispute still arose between the agents. It usually involves compensation disputes between brokers in two different firms. Arbitration is not about sanctioning agents for bad behavior - it exists to resolve business disputes involving REALTORS® in the event that the REALTORS® have been unable or unwilling to resolve the dispute themselves.

Mandatory vs. Voluntary

REALTORS® are not obligated to use NVAR's arbitration services to resolve disputes. REALTORS® may resolve disputes themselves or submit the dispute to other venues including courts. However, if one party who is eligible to use the association's Arbitration services submits the claim to NVAR, then the other party may be obligated to participate in arbitration and abide by the arbitrators' decision if the case is classified as mandatory.

Arbitration Process

In arbitrable cases, NVAR's Arbitration Committee convenes a panel of impartial, unbiased, and experienced REALTORS® to consider your case. Designed to ensure that the due process rights of all parties are protected, claimants and respondents may be represented by attorneys, call witnesses, present evidence, and challenge the qualifications of the panel members selected to hear the case.

The parties also enjoy a limited right to request a procedural review or file a legal challenge to the decision if they believe that there were procedural deficiencies or other irregularities that constitutes a deprivation of due process. However, this is not an appeal on the decision itself, only the procedures used in conducting the hearing. To learn more about the procedures for an arbitration hearing, click here.

Mediation

In addition to Arbitration services, NVAR also offers Mediation as an alternative for resolving commission or other business disputes. Mediation has become a popular alternative to Arbitration because it is quicker, easier, and provides the parties with more control over the final resolution of the dispute.

Mediation allows members to negotiate a mutually agreeable solution by providing a impartial third party to facilitate discussion between the parties. It is a voluntary process that requires the consent of both parties and is generally faster and less expensive than arbitration. Mediation also allows members to avoid the confrontational and adversarial nature of an arbitration hearing. The goal is to foster dialog and reach an understanding that allows the parties to find a middle ground to resolve the conflict.

Mediation vs. Arbitration

In arbitration, the parties are generally more concerned with testifying to the panel than talking through their dispute. Arbitration awards are generally an "all or nothing" proposition where one party is awarded money and the other is left with nothing. Feedback indicates that REALTORS® emerge from successful mediations with a higher level of satisfaction with the result than REALTORS® who participate in arbitration. Therefore, the Professional Services Department urges you to consider mediation as an alternative when filing an arbitration request. If mediation is unable to resolve the dispute, the parties can proceed to an arbitration hearing without delay.

View the Mediation brochure from the National Association of REALTORS® which explains the benefits of mediation.

If you have any questions, please contact the Professional Services Department at 703-207-3223 or email Laura Farley at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .