REALTORS® are different from non-member licensees in that they voluntarily subscribe to a strict Code of Ethics. If you believe that a REALTOR® has violated one or more Articles of the Code of Ethics, you can file an ethics complaint alleging a violation(s) through the Local Association/Board of REALTORS® where the REALTOR® holds membership, or participates in a REALTOR® Association/Board-owned/operated MLS.
Some of the basic principles of the Code of Ethics include:
An Ombudsman can field and respond to an array of inquiries and complaints, including general questions regarding real estate practices, transaction details, ethical practices and enforcement issues. They can open lines of communication between the public and REALTORS®, and between REALTORS® themselves, in an attempt to resolve misunderstandings before they evolve into larger disputes and charges of unethical conduc
Each Local Association or Board is responsible for enforcing the REALTORS® Code of Ethics. Any person having reason to believe that a REALTOR® is guilty of violating the Code of Ethics may file a complaint.
Many ethics complaints result from misunderstanding or a breakdown in communication. Before filing an ethics complaint, you may want to make reasonable efforts to communicate with the REALTOR® or a managing principal broker in the firm. Open, constructive discussion often resolves questions or differences, eliminating the need for further action. If these efforts do not resolve the issue, the Local Association/Board can provide options for dispute resolution, including the procedures and forms necessary to file an ethics complaint.
Complaints must be filed within one hundred eighty (180) days after the facts constituting the matter complained of could have been known in the exercise of reasonable diligence or within one hundred eighty (180) days after the conclusion of the transaction or event, whichever is later.
An ethics complaint may be eligible for the Citation Program if there is an alleged violation, identified under the Citation Schedule of Fines for Articles 3, 4, 5, 6, 12, 14 and/or 16, provided the complaint does not also include Articles which are not included in the citation program.
REALTORS® are obligated to submit to arbitration their commission disputes between brokerages in accordance with Article 17 of the REALTORS® Code of Ethics. Arbitration hearings are conducted by the local Association/Board’s Professional Standards Committee following procedures described in the National Association of REALTORS® Code of Ethics and Arbitration Manual.
The hearing panel, after hearing testimony, will render a decision and shall state only the amount of the award. The Award of Arbitrators is valid and binding and shall not be subject to review or appeal. However, a party to an arbitration proceeding may appeal to the Board of Directors only with respect to such alleged irregularities occurring in the conduct of the proceeding as may have deprived the party of fundamental “due process.”
Disputed amount must be a minimum of $1,000.00, and Principal Brokers must participate in the process (unless the disputants are or were affiliated with the same firm, which would constitute a voluntary arbitration). The Request and Agreement to Arbitrate must be filed within 180 days after closing, if any, or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence. Mediation of the matter may also be requested; however requesting mediation has no bearing on the 180-day time frame requirement for arbitration.
Contact your local Association/Board to request REALTOR® Arbitration or more information, or contact the Oregon REALTORS® Professional Standards Administrator.
Please refer to your Sale Agreement terms on how to proceed with dispute resolution between parties of a transaction.