In an Ethics Proceeding, a member of the public or another REALTOR® member files a complaint alleging a violation of one or more Articles of the Code of Ethics by a REALTOR® member. The complaint is sent to the Grievance Committee to determine if the facts taken for face value could represent a possible violation of the Code. The committee is responsible for a determination - to send or not to send - the complaint forward to a hearing.
Mediation between parties to a contract is a service offered to our REALTOR® members and their clients. Both parties MUST agree to mediate. The Mediator is a trained to work out a resolution. If the parties cannot agree then they may need to consult with their legal counsel.
Agent To Agent
Mediation is a less formal process that requires both Managing Brokers to meet with a trained Mediator to work out a resolution for their commission dispute. A successful Mediation is often referred to as a "win-win". The Mediator is a neutral party that can see past the emotion of the deal. Mediation is binding if a resolution is reached, but if the parties cannot agree, they may then proceed to Arbitration.
Arbitration is the formal process of determining who is the procuring cause and other factors of a sale. The awards are rarely "split", more commonly there is a prevailing party and a non-prevailing party. An Arbitration hearing is held after a Grievance Committee determines that it is a properly arbitral issue and meets all other criteria that would send the request to a hearing.