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CONDUCT OF

GRIEVANCE AND
ARBITRATION

PROCEEDINGS

A grievance or arbitration proceeding is the
only time that discussions of the business
practices of a particular real estate broker
is permissible at a meeting held by an
®
association of REALTORS . The issue before
the hearing panel is whether or not those
practices are in accord with the Code of
Ethics, in the case of grievance matters,
and entitlement to compensation, in the
case of arbitration proceedings. The
association executive must ensure that
professional standards proceedings are
never used overtly or covertly to “punish”
or discipline a broker engaged in unusual
or innovative brokerage practices.

The association’s grievance and arbitration
procedures must be in writing, reviewed by
counsel, and conform in principle with
NAR’s Code of Ethics and Arbitration
Manual.

The association’s counsel should be
present if the parties to a grievance or
arbitration hearing have counsel present,
or when the matters to be considered
would appear to involve particularly
complex or sensitive issues.
The association’s professional standards
committee must insist that all complaints
be provided in writing, that all hearings
be transcribed or recorded, and that the
records be maintained for a suitable length
of time to protect the association.

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