Boards and Associations of REALTORS®
are responsible for
enforcing the REALTORS®
Code of Ethics. The Code of Ethics
imposes duties above and in addition to those imposed by law
or regulation which apply only to real estate professionals who
choose to become REALTORS®.
Many difficulties between real estate professionals (whether
REALTORS®
or not) result from misunderstanding,
miscommunication, or lack of adequate communication. If you
have a problem with a real estate professional, you may want to
speak with them or with a principal broker in the firm. Open,
constructive discussion often resolves questions or differences,
eliminating the need for further action.
If, after discussing matters with your real estate
professional or a principal broker in that firm, you
are still not satisfied, you may want to contact the
local Board or Association of REALTORS®.
Many Boards and Associations have informal
dispute resolving processes available to consumers (e.g.,
ombudsmen, mediation, etc.).
If, after taking these steps, you still feel you have a grievance,
you may want to consider filing an ethics complaint. You will
want to keep in mind that . . .
• Only REALTORS®
and REALTOR ®-ASSOCIATEs are subject to the
Code of Ethics of the NATIONAL ASSOCIATION OF
REALTORS®.
• If the real estate professional (or their broker) you are dealing
with is not a REALTOR ®, your only recourse may be the state
real estate licensing authority or the courts.
• Boards and Associations of REALTORS®
determine whether the
Code of Ethics has been violated, not whether the law or real
estate regulations have been broken. Those decisions can
only be made by the licensing authorities or the courts.
• Boards of REALTORS®
can discipline REALTORS®
for violating
the Code of Ethics. Typical forms of discipline include
attendance at courses and seminars designed to increase
REALTORS® ’ understanding of the ethical duties or other
responsibilities of real estate professionals. REALTORS®
may
also be reprimanded, fined, or their membership can be
suspended or terminated for serious or repeated violations.
Boards and Associations of REALTORS®
cannot require
REALTORS®
to pay money to parties filing ethics complaints;
cannot award “punitive damages” for violations of the Code
of Ethics; and cannot suspend or revoke a real estate
professional’s license.
• The primary emphasis of discipline for ethical lapses is
educational, to create a heightened awareness of and
appreciation for the duties the Code imposes. At the same
time, more severe forms of discipline, including fines and
suspension and termination of membership may be imposed
for serious or repeated violations.
Filing an Ethics Complaint
The local Board or Association of REALTORS®
can provide you
with information on the procedures for filing an ethics
complaint. Here are some general principles to keep in mind.
• Ethics complaints must be filed with the local Board or
Association of REALTORS®
within one hundred eighty (180)
days from the time a complainant knew (or reasonably should
have known) that potentially unethical conduct took place.
• The REALTORS®
Code of Ethics consists of seventeen (17)
Articles. The duties imposed by many of the Articles are
explained and illustrated through accompanying Standards of
Practice or case interpretations.
• Your complaint should include a narrative description of the
circumstances that lead you to believe the Code of Ethics
may have been violated.
• Your complaint must cite one or more of the Articles of the
Code of Ethics which may have been violated. Hearing
Panels decide whether the Articles expressly cited in
complaints were violated—not whether Standards of Practice
or case interpretations were violated.
• The local Board or Associations of REALTORS® ’ Grievance
Committee may provide technical assistance in preparing a
complaint in proper form and with proper content.
Before the Hearing
• Your complaint will be reviewed by the local Board or
Association’s Grievance Committee. Their job is to review
complaints to determine if the allegations made, if taken as
true, might support a violation of the Article(s) cited in the
complaint.
• If the Grievance Committee dismisses your complaint, it does
not mean they do not believe you. Rather, it means that they
do not feel that your allegations would support a Hearing
Panel’s conclusion that the Article(s) cited in your complaint
had been violated. You may want to review your complaint to
see if you cited an Article appropriate to your allegations.
• If the Grievance Committee forwards your complaint for
hearing, that does not mean they have decided the Code of
Ethics has been violated. Rather, it means they feel that if
what you allege in your complaint is found to have occurred
by the Hearing Panel, that panel may have reason to find that
a violation of the Code of Ethics occurred.
• If your complaint is dismissed as not requiring a hearing, you can appeal that
dismissal to the Board of Directors of the local Board or Association of
REALTORS®.
Preparing for the Hearing
• Familiarize yourself with the hearing procedures that will be
followed. In particular you will want to know about challenging
potential panel members, your right to counsel, calling
witnesses, and the burdens and standards of proof that apply.
• Complainants have the ultimate responsibility (“burden”)
of proving that the Code of Ethics has been violated.
The standard of proof that must be met is “clear,
strong and convincing,” defined as “. . . that measure ordegree of proof which will produce a firm belief
or conviction as to the allegations sought to be established.”
Consistent with American jurisprudence, respondents are
considered innocent unless proven to have violated the Code of Ethics.
• Be sure that your witnesses and counsel will be available on
the day of the hearing. Continuances are a privilege—not a
right.
• Be sure you have all the documents and other evidence you
need to present your case.
• Organize your presentation in advance. Know what you are
going to say and be prepared to demonstrate what happened
and how you believe the Code of Ethics was violated.
At the Hearing
• Appreciate that panel members are unpaid volunteers giving
their time as an act of public service. Their objective is to be
fair, unbiased, and impartial; to determine, based on the
evidence and testimony presented to them, what actually
occurred; and then to determine whether the facts as they find
them support a finding that the Article(s) charged have been
violated.
• Hearing Panels cannot conclude that an Article of the Code
has been violated unless that Article(s) is specifically cited in
the complaint.
• Keep your presentation concise, factual, and to the point.
Your task is to demonstrate what happened (or what should
have happened but did not), and how the facts support a
violation of the Article(s) charged in the complaint.
• Hearing Panels base their decisions on the evidence and
testimony presented during the hearing. If you have
information relevant to the issue(s) under consideration, be
sure to bring it up during your presentation.
• Recognize that different people can witness the same event
and have differing recollections about what they saw. The
fact that a respondent or their witness recalls things
differently does not mean they are not telling the truth as they
recall events. It is up to the Hearing Panel, in the findings of
fact that will be part of their decision, to determine what
actually happened.
• The Hearing Panel will pay careful attention to what you say
and how you say it. An implausible account does not become
more believable through repetition or through volume.
• You are involved in an adversarial process that is, to
some degree, unavoidably confrontational. Many violations
of the Code of Ethics result from misunderstanding
or lack of awareness of ethical duties by otherwise
well-meaning, responsible real estate professionals. An ethics
complaint has potential to be viewed as an attack on a
respondent’s integrity and professionalism. For the
enforcement process to function properly, it is imperative for
all parties, witnesses, and panel members to maintain
appropriate decorum.
After the Hearing
• When you receive the Hearing Panel’s decision, review it
carefully.
• Findings of fact are the conclusions of impartial panel
members based on their reasoned assessment of all of the
evidence and testimony presented during the hearing.
Findings of fact are not appealable.
• If you believe the hearing process was seriously flawed to the
extent you were denied a full and fair hearing, there are
appellate procedures that can be invoked. The fact that a
Hearing Panel found no violation is not appealable.
• Refer to the procedures used by the local Board or
Association of REALTORS®
for detailed information on the
bases and time limits for appealing decisions or requesting a
rehearing. Rehearings are generally granted only when newly
discovered evidence comes to light
(a) which could not reasonably have been discovered and
produced at the original hearing and
(b) which might have had a bearing on the Hearing Panel’s
decision.
Appeals brought by ethics respondents must be based on
(a) a perceived misapplication or misinterpretation of one or
more Articles of the Code of Ethics,
(b) a procedural deficiency or failure of due process, or
(c) the nature or gravity of the discipline proposed by the
Hearing Panel.
Appeals brought by ethics complainants are limited to
procedural deficiencies or failure of due process that may
have prevented a full and fair hearing.
Conclusion
• Many ethics complaints result from misunderstanding or a
failure in communication. Before filing an ethics complaint,
make reasonable efforts to communicate with your real estate
professional or a principal broker in the firm. If these efforts
are not fruitful, the local Board or Association of REALTORS®
can give you the procedures and forms necessary to file an
ethics complaint.
Please be sure to fill out the entire form. ALL information will
be kept confidential and is subject to the grievance policies outlined by the
REALTOR ® Association. Fields marked with an "*"
are required :
