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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.
Mandatory
vs. Voluntary Arbitration
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.
Filing
a Request for Arbitration
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. Click
here for more information about Mediation.
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