Disputes can heat up quickly when commissions are involved. But you aren’t alone. You have resources available to you if your agent is in a dispute with clients or another REALTOR®.
Texas REALTORS® administers NAR’s Code of Ethics program which offers members a fair and thorough arbitration process to help you reach a resolution without a formal complaint or lawsuit. Here’s how this useful member benefit can make a difference for you and your agents:
It’s confidential
Everything in the arbitration process, from the allegations to the decision, is private and can only be disclosed if authorized by Texas REALTORS® policy.
It’s impartial
By going through Texas REALTORS®, you and the other party can rest assured that a neutral third party is guiding the process. Both sides are kept informed at each step.
First a grievance tribunal of Professional Standards Committee members determines if Texas REALTORS® can arbitrate your request by looking at the facts of the case. Texas REALTORS® only arbitrates contractual disputes and five types of non-contractual disputes listed in the Code of Ethics.
If the tribunal says Texas REALTORS® can take the case, then your request is sent to a hearing panel. Both sides get a chance to explain what happened and bring attorneys and witnesses if they choose. There’s even an appeals process where you or the other party may contest if the procedures involved were flawed.
It’s less costly than a trial
Arbitration only focuses on the amount of money in dispute. There are no punitive damages, attorney’s fees or interest unless previously agreed upon between the parties.
It can be optional
The Code of Ethics states that some types of disputes, such as when two different firms are involved or a client’s dispute with their broker, must go through arbitration. But there are other situations in which arbitration is optional, such as when one of the parties is not a REALTOR®.
It can even be used for disputes with your own agents
Pay disputes between agents and brokers can go through the arbitration process, but you, as the broker, would have to agree to it.
There are options other than attempting an informal resolution or filing a lawsuit. Arbitration can take time, but you may prefer it to more expensive, formal—and public—proceedings like a lawsuit or TREC complaint. To learn more about the process, visit texasrealestate.com/ethics.
