All PSAR members are required to settle their monetary disputes (usually a commission issue) through the use of our Arbitration program. Members submit to PSAR an arbitration request including a detailed summary of the events and pay a filing fee. We then begin the process and contact the Respondent for their response. A hearing will be scheduled and three panel members from our list of qualified Professional Standards Committee members (all volunteers) will be selected to hear your case and come to a conclusion.
Before beginning any arbitration proceedings, we first require members to to participate in non-binding mandatory mediation, also available through our association.
Mediation is mandatory and must be filed prior to filing for Arbitration. In November 2011, Article 17 of the Code of Ethics was amended to give local associations discretionary authority to obligate members to mediate otherwise arbitrable disputes. The policy changes have been adopted by the Pacific Southwest Association of REALTOR'S® Board of Directors and have been highlighted in red for review.
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 mediate the dispute if the Board requires its members to mediate. If the dispute is not resolved through mediation, or if mediation is not required, REALTORS® shall submit the dispute to arbitration in accordance with the policies of the Board rather than litigate the matter.
In the event clients of REALTORS® wish to mediate or arbitrate contractual disputes arising out of real estate transactions, REALTORS® shall mediate or arbitrate those disputes in accordance with the policies of the Board, provided the clients agree to be bound by any resulting agreement or award .
The obligation to participate in mediation and arbitration contemplated by this Article includes the obligation of REALTORS® (principals) to cause their firms to mediate and arbitrate and be bound by any resulting agreement or award. (Amended 1/12)Standard of Practice 17-1
The filing of litigation and refusal to withdraw from it by REALTORS® in an arbitrable matter constitutes a refusal to arbitrate. (Adopted 2/86)Standard of Practice 17-2
Article 17 does not require REALTORS® to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board’s facilities. The fact that all parties decline to participate in mediation does not relieve REALTORS® of the duty to arbitrate.
Article 17 does not require REALTORS® to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board. (Amended 1/12)
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