Arbitration Forms

8/14/2019 Arbitration Forms

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Sarasota Association of Realtors, Inc.

Request for Arbitration

Please find enclosed Form A-1 for filing a Request for Arbitration. Attach the completed form toyour written statement substantiating the arbitration amount requested to support your case. Thisamount must be for money you believe is owed you, not for money you believe you should be paidfor damages you may have incurred. The request must show there was a contractual issue with therespondent, i.e. the respondent has promised to pay or specific non-contractual disputes. Anexample: A buyer you showed the property to contracts the house through another broker. Afterclosing you feel you were the procuring cause. You may file against the broker who was paid. The jurisdiction of the Association can arbitrate entitlement to disputed monies, but cannot award

punitive damages. The transaction must have closed in order to arbitrate.

Also enclosed is a copy of the National Association of REALTORS Code of Ethics and abrochure on the process and procedures regarding ethics and arbitration.

Please send us:

1. Original plus fifteen (15) copies of Form A-1 and supportingdocumentation.

2. A deposit check for $250.00. The deposit is returned to the

prevailing party.

Upon receipt, the request to arbitrate will be forwarded to the Grievance Committee. TheCommittee usually meets the first Monday of every month. You will be advised of the GrievanceCommittees decision in writing. The Committee may either forward the request to theProfessional Standards Committee for a hearing or dismiss it as unarbitrable.

Before a hearing is scheduled, each party will be contacted by the Professional StandardsAdministrator to determine if the parties wish to mediate the dispute. If both parties agree, anattempt will be made to mediate the controversy with a mediator, acceptable to both parties. Ifmediation cannot be achieved, the Professional Standards arbitration process will begin.

If you have any questions or need additional information, please feel to contact Patty Niemann,Professional Standards Administrator at (941) 328-1169.

3590 S. Tuttle Avenue Sarasota, FL 34239 941-923-2315 Fax 941-921-2074


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FORM #A-1

Sarasota Association Of Realtors, Inc.3590 S. Tuttle Avenue, Sarasota, FL 34239

Request And Agreement To Arbitrate

1. The undersigned, by becoming and remaining a member of the Sarasota Association of REALTORS (or Participant in its MLS) haspreviously consented to arbitration through the Association under its Rules and Regulations.

2. I am informed that each person named below is a member in good standing of the Association (or Participant in its MLS) or was amember of said Association of REALTORS at the time the dispute arose.

3. A dispute arising out of the real estate business as defined by Article 17 of the Code of Ethics exists between me (or my firm) and(list all persons and/or firms you wish to name as Respondents to this arbitration.)

(Name) , REALTORPrincipal (Address)

(Name)_______________________________Broker/Office Manager (Address)_______________________________________

(Firm) ________________________________ Address__________________________________________________________

4. There is due, unpaid, and owing to me (or I retain) from the above-name persons the sum of $ . My claim ispredicated upon the statement attached, marked Exhibit "I" and incorporated by reference into this application.

5. I request and consent to arbitration through the Association in accordance with its Code of Ethics and Arbitration Manua(alternatively, "in accordance with the professional standards procedures set forth in the Bylaws of the Association"), and I agree toabide by the arbitration award and to comply with it promptly.

In the event I do not comply with the arbitration award and it is necessary for any party to this arbitration to obtain judicial confirmationand enforcement of the arbitration award against me, I agree to pay the party obtaining such confirmation the costs and reasonableattorney's fees incurred in obtaining such confirmation and enforcement.

6. I enclose my check in the sum of $250.00 for the arbitration filing fee.

7. I understand that I may be represented by legal counsel, and that I should give written notice no less than fifteen (15) days before thehearing of the name, address, and phone number of my attorney to all parties and the Association. Failure to provide this notice mayresult in a continuance of the hearing, if the Hearing Panel determines that the rights of the other party(ies) require representation.

8. I declare that this application and the allegations contained herein are true and correct to the best of my knowledge and belief andthis request for arbitration is filed within one hundred eighty (180) days after the closing of the transaction, or within one hundredeighty days (180) after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligencewhichever is later.

9. If either party to an Arbitration Request believes that the Grievance Committee has incorrectly classified the issue presented in therequest (i.e., mandatory or voluntary), the party has twenty (20) days from the date of receipt of the Grievance Committees decisionto file a written appeal of the decision. Only those materials that the Grievance Committee had at the time of its determination maybe considered with the appeal by the Board of Directors.

10. Are the circumstances giving rise to this arbitration request the subject of civil litigation? _____Yes _____ No

COMPLAINANT(s)

Name (type/print) Signature of Realtor Principal Date

Each party must provide a list of the names of witnesses he/she intends to call at the hearing to the Association and to all otherparties not less than fifteen (15) days prior to the hearing. Each party shall arrange for his/her witnesses to be present at the timeand place designated for the hearing. The following REALTOR nonprincipal affiliated with my firm has a financial interest in theoutcome of the proceeding and has the right to be present throughout the hearing:_______________________________

Address Telephone

Name (type/print) Signature of Office Manager/Broker Date

Address Telephone

Name of Firm Address


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AGuidetothe

ProcessandProceduresof

EthicsandArbitration


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Table of Contents

Question s and Answers ................................................................................... 1

Complaint against a REALTOR ...................................................................... 1Is Your Complaint Ethics or Arb it ra tion ........................................................... 1

Who May Fi le an Eth ics Complaint ................................................................... 1

Who May Fi le an Arb it ration Complaint ........................................................... 2

What Can SAR Do ............................................................................................ 2

How Do You Fi le .............................................................................................. 3

Ethi cs Complaint ......................................................................................... 3

Arbi tr at ion Request .................................................................................... 4

How Does SAR Process the Com plaint ............................................................ 4

Function of Grievance Commit tee ................................................................... 4

Ethi cs Complaint s ....................................................................................... 4

Arbi tr at ion Request s ................................................................................... 5

Function of the Profess ional Standards Committ ee ........................................ 6

Procedura l Flow Char t ..................................................................................... 7


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Questions and Answers

Ethics Complaints & Arbitration Requests

Q. Do you have a complaint concerning a REALTOR?

A. The first thing that must be determined in processing a complaint with theSarasota Association of REALTORS (SAR) is whether the real estate agentinvolved is a REALTOR and a member of SAR, or receives MLS through SAR.Not all real estate agents are REALTORS. Only those who belong to anAssociation of REALTORS can use the term REALTOR. When joining anAssociation, all members agree to abide by the Code of Ethics as a continuingcondition of membership. It is because of this obligation to abide by the Code ofEthics that you can file complaints at an Association of REALTORS.

Q. Is your complaint Ethics or Arbitration?

A. You may have to consider whether your complaint concerns an ethics matter oran arbitration of a monetary dispute. An ethics complaint charges that aREALTOR has violated an Article(s) of the Code of Ethics.

Arbitration is a means of resolving a monetary dispute arising out of a real estatetransaction that the parties have been unable to solve themselves. An arbitrationcomplaint or request is a simple notice by a member of a disagreement withanother member, usually a commission dispute. Sometimes arbitration concerns

a dispute between a member of the public and an Association member.Arbitration does not award damages.

If your situation concerns both ethics and arbitration, SAR will handle therequests separately. You may file both at the same time however, arbitration isalways held first. Only when arbitration is complete will the ethics complaint beconsidered.

Q. Who may file an ethics complaint?

A. Anyone. Any person, whether a member of SAR or not, may file a complaint

against a SAR member alleging a violation of the Code of Ethics, providing thecomplaint:1. Is in writing.2. Is signed by the complainant.3. States the facts surrounding the case.4. Is filed within 180 days (6 months) after the facts could have become known.

The Complainant may file a complaint from any location provided it is filed withthe Association having jurisdiction over the individual named in the complaint.


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Q. Who may file an arbitration request?

A. REALTORS, primary or secondary members, who areprincipal brokers.

REALTORS, primary or secondary members, who are not principals,provided his or her principal broker joins in the request.

Clients or customers of the REALTOR (see note below). The request also must:

1. Be in writing.2. Be signed by the Complainant.3. Indicate the amount in dispute.4. Be filed within 180 days (6 months) of either closing of transaction or

after the facts could have become known, whichever is later.

Arbitration facilities are provided by SAR as a service to its members. Arbitration is nota disciplinary proceeding nor does it award damages. By becoming and remaining amember of SAR, REALTORS bind themselves to arbitrate certain disputes.

In all arbitrable matters, mediation is offered prior to a formal hearing.

Be aware that not every situation may be arbitrated at SAR. There are conditions andlimitations to be considered, which will be explained to you by SARs ProfessionalStandards Administrator as the process continues.

Note: Disputes involving clients or customers require that the client or customersign an agreement to arbitrate and to be bound by the arbitration. Whether thecomplainant is a client or a customer and whether the dispute is one that can beprocessed by SARs Grievance Committee is determined by SARs GrievanceCommittee.

Q. What can SAR do?

A. SAR has limitations to its authority regarding its members. Below is a list ofthose limitations:1. SAR cannot hold an administrative hearing for violations of the Florida real

estate license law or any other alleged violation of the law. It hasjurisdiction only over violations of membership duties. The Florida RealEstate Commission has sole control of the real estate agents license tosell real estate. If you think a person has violated the law, you should be

contacting another agency.2. For the same reason, SAR cannot suspend or terminate the real estatelicense of one of its members.

3. SAR can in the case of an ethics violation being determined in a dueprocess hearing procedure, administer discipline to the REALTOR inone or more of the following ways:

Send a letter of warning or reprimand to the member. Direct the member to attend an ethics class or other

training appropriate to the violation.


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Appropriate and reasonable fine not to exceed $5,000 (this fineis not awarded to the complainant).

Place the member on probation for a stated period of time notless than thirty (30) days or more than one (1) year.

Membership of the individual suspended for a stated period of time notless than thirty (30) days or more than one (1) year.

Expel the member from membership with no reinstatement privilege for aspecified period of one (1) to three (3) years, with reinstatement ofmembership to be by application only after the specified period ofexpulsion on the merits of the application at the time received.

Suspension (30 days to 1 year) or termination of MLS rights and privileges(1 to 3 years).

If Respondent is found in violation of the Code of Ethics, an administrativeprocessing fee of $250 will be assessed by SAR for the first offense and$500 for each subsequent offense.

4. Monetary damages cannot be a part of an ethics proceeding.6. SAR can arbitrate certain money disputes and must in some situations,

but the member of the public must agree in writing to arbitrate the disputeand to be bound by the decision.

7. The award in arbitration cannot be greater than the amount in dispute, maynot include "punitive" damages and may not include attorney's fees unlessexpressly provided for in the agreement giving rise to the dispute.

Q. How do you file?

A. Now that you know the ground rules, if you wish to file a complaint, heres howyou do it.

Ethics Complaints

If you want to file an ethics complaint, you need to follow these steps:

1. Contact SARs Professional Standards Administrator (328-1169) to request anethics complaint package.

2. Complete and sign the complaint form (#E-1). This form requests you to namethe REALTOR(s) in question as the Respondent(s).

3. List the Article(s) of the Code of Ethics that you think the REALTOR hasviolated. A copy of the Code of Ethics is included in this packet.

4. Attach an explanation of the situation surrounding the complaint. Be as specific

as possible. State the details, including what, when, where, why and how youthink each Article was violated.

5. Attached copies of any and all pertinent documents that prove your points suchas listing agreement, purchase and sales agreements and addenda. If you havenotarized statements from witnesses, include those also.

6. Send the entire package, keeping a copy for yourself, to SAR to the attention ofthe Professional Standards Administrator. The complaint and response will thenbe processed through the Grievance Committee.


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Arbitration Requests

The process is very similar to filing an ethics complaint. A request forarbitration form will be supplied by SARs Professional Standards Administrator. Stepsto follow are:

1. Contact SARs Professional Standards Administrator (328-1169) for an

arbitration request package.2. Name the Designated REALTOR and REALTOR(s) involved (Respondents).

The Designated REALTOR with a firm must be named in most instances inaddition to the REALTOR(s) involved.

3. Indicate the amount in dispute.4. Include an explanation of the situation. State why you feel you are entitled to an

award of some kind. Remember; dont include allegations of unethical conduct inyour argument. If you think there have been ethical violations, they can behandled separately with an ethics complaint.

5. Attach copies of any and all pertinent documents such as listing agreements,purchase and sales agreements, and closing statements, plus any notarizedstatements from witnesses.

6. SAR requires an arbitration deposit of $250 and it must be included. Details areincluded in the arbitration packet you receive.

7. You will be asked to sign an arbitration agreement (Form #A-1, Member or Form#A-2, Nonmember) indicating your commitment to abide by the decision of theHearing Panel.

8. Send all of these items to SAR to the attention of the Professional StandardsAdministrator. Remember, it is not unusual for SAR to receive an ethicscomplaint and an arbitration request surrounding the same set of circumstances.If you think the REALTOR(s) violated the Code of Ethics and you have amonetary dispute with him or her, you must complete both forms.

Q. How does SAR process the complaint?

A. The complaint will be processed through the Grievance Committee. You will beadvised of the Grievance Committees decision in writing. The Committee mayeither forward the request to the Professional Standards Committee for a hearingor dismiss it as unarbitrable.

FUNCTION OF THE GRIEVANCE COMMITTEE

Ethics Complaints: The Grievance Committee reviews complaints when received bySAR. The Committee determines whether the complaint has sufficient merit for furtherconsideration, somewhat like a grand jury. It does not determine guilt or innocence.The Committee will do one of three things:

1. Forward the case for a Professional Standards Hearing, or2. Dismiss it, if the complaint is determined to be frivolous, harassing or unfounded

or not within the time limitations, or3. Postpone its decision based on getting more information from you or determining

that the case may be more appropriately considered for arbitration.


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Also before it reaches a decision, the Committee may request additionalinformation or clarification from you regarding your complaint.

If your complaint is dismissed by the Committee, you have the right to appeal thedismissal to the Board of Directors. A panel of five (5) members from the Board ofDirectors will be selected by the President of the Association. In the case of an appeal,

the Directors re-examine the materials submitted to the Grievance Committee and caneither uphold or overturn the Grievance Committees decision. Complainants andRespondents are not present for the appeal.

If the complaint is to be given further consideration, it will be sent to the ProfessionalStandards Committee for a hearing.

Arbitration Requests: The Grievance Committees role in arbitration is different fromethics complaints. Its only function is to make such preliminary investigation todetermine whether the matter is subject to arbitration by SAR. Arbitration sometimes isa duty and sometimes a privilege. The Committee must decide whether your situation

fits into the Duty or the Privilege category. It does this by determining:

1. Where you are authorized, under the rules, to invoke arbitration.2. Whether the controversy described is an arbitrable matter.3. Whether the arbitration is mandatory or voluntary to the people involved (this

simply means whether arbitrating the dispute is compulsory or not).4. Whether either the amount in dispute is too small or too large, or the matter is too

legally complicated for SAR to consider.5. Whether or not the request is filed within the time frame (180 days).

Such a review could result in the release of SAR members from the obligation to

arbitrate, and thus free you to seek other recourse in order to resolve the dispute.

If the Grievance Committee determines that a matter is arbitrable, it also will notify theparties that a mediation procedure is available as a preliminary, voluntary alternative toarbitration. If the Committee determines that the matter is not arbitrable, theComplainant and Respondent deposits will be refunded.

As in the case of ethics complaints, you may appeal a dismissal of an arbitrationrequest to SARs Board of Directors. A panel of five (5) Board of Directors memberswill be selected by the President of SAR to review the materials submitted to theCommittee and can uphold or overturn the Grievance Committees dismissal.

Complainant and Respondent are not present for the appeal.

In either ethics or arbitration cases, you will be informed promptly of the GrievanceCommittees decision. If the Grievance Committee forwards the complaint or request toa hearing, it is assigned to SARs Professional Standards Committee.


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FUNCTION OF PROFESSIONAL STANDARDS COMMITTEE

The function of this Committee is to hold ethics and arbitration hearings.

The Professional Standards Committee Chair will appoint a Hearing Panel, consisting offive members of the Professional Standards Committee of the SAR chosen on the basisof experience, temperament and objectivity.

A hearing will be scheduled and both the Complainant and Respondent will be notifiedof the hearing date, time and place. These hearings provide an opportunity for theComplainant and the Respondent to explain his or her side of the story by presentingtestimony and witnesses, if any.

Once all the facts have been presented to the appointed Hearing Panel, the Panel willgo into executive session to determine whether the Code of Ethics has been violated,or, in the case of arbitration, how the dispute should be settled. The Complainant andRespondent will be notified of the Panel's decision by certified mail.

You will be informed by SAR about each step of this process as it occurs. Complainantand Respondent also will be given instructions about the hearing procedures prior to thehearing. The entire process usually will take a minimum of 60 days, but may takelonger. In arbitration cases, the prevailing partys deposit will be refunded.

If you have any questions relating to filing your complaint, please call SARsProfessional Standards Administrator at (941) 328-1169.

Send all correspondence to:

Professional Standards Administrator

Sarasota Association of REALTORS

3590 S. Tuttle Avenue

Sarasota, FL 34239


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PROCEDURAL FLOW CHART

Ethics Complaint or Arbitration Request Received

Sarasota Association of Realtors Grievance Committee ReviewEthics Complaints & Arbitration Requests

1. Acceptable form?2. All necessary parties named?3. Filed within 180 days (6 months)?4. Is the Respondent a member of the Association?5. Was Respondent a member when this transpired?6. Litigation?

Ethics Only Arbitration Only7. Are the correct Articles cited? 7. Mandatory or voluntary arbitration?8. Should some be added or deleted? 8. Too small, too large or too complex?9. If true on face value, is it a possible

violation?

Dismissed asnot valid

May appealdecision toBoard ofDirectorswithin 20days

or

Forward for ProfessionalStandards Hearing

Mail Challenge Formshowing ProfessionalStandards HearingCommittee Members

Set hearing date & notify bothparties & panel members.21 days notice required

Hold Hearing

Findings of Facts - notify bothparties - 20 days to appeal if desired

Findings of Facts validated by Boardof Directors

Validation notice by Board sent toboth parties

Dismissed as notarbitrable

May appeal decisionto Board of Directorswithin 20 days

or Offer mediation

If parties do not wish tomediate or mediation notsuccessful


Mail Challenge Form showingProfessional Standards HearingCommittee Members


Hold Hearing

Award (if any) of ArbitratorsNotify both parties

20 days to appeal only on procedureview

Phone Call

Revised: 7/2007


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Sarasota Association of Realtors, Inc.

Request for ArbitrationNon-Member

Please find enclosed Form A-2 for filing a Request for Arbitration. Attach the completed form toyour written statement substantiating the arbitration amount requested to support your case. Thisamount must be for money you believe is owed you, not for money you believe you should be paidfor damages you may have incurred. The request must show there was a contractual issue with therespondent, i.e. the respondent has promised to pay or specific non-contractual disputes. Anexample: A buyer you showed the property to contracts the house through another broker. Afterclosing you feel you were the procuring cause. You may file against the broker who was paid. The

Association can arbitrate entitlement to disputed monies, but cannot award punitive damages. Thetransaction must have closed in order to arbitrate.

Also enclosed is a brochure on the process and procedures regarding arbitration.

Please send us:

1. Original plus fifteen (15) copies of Form A-2 and supportingdocumentation.

2. A deposit check for $250.00. The deposit is returned to theprevailing party.

Upon receipt, the request to arbitrate will be sent to the Respondent for a response. TheRespondent has 15 days to respond. Once we have the response, the request to arbitrate will goforward to the Grievance Committee. The Committee usually meets the first Monday of everymonth. You will be advised of the Grievance Committees decision in writing. The Committeemay either forward the request to the Professional Standards Committee for a hearing or dismiss itas unarbitrable.

If the Grievance Committee forwards your request for a hearing, a copy of your request will besent to the Respondent. Arbitration by the Respondent will be voluntary because you are not aRealtor member or an MLS participant. If the Respondent chooses to arbitrate, prior to a hearingbeing scheduled, each party will be contacted by the Professional Standards Administrator todetermine if the parties wish to mediate the dispute. If both parties agree, an attempt will bemade to mediate the controversy with a mediator, acceptable to both parties. If mediation cannotbe achieved, the Professional Standards arbitration process will begin.

If you have any questions or need additional information, please feel to contact Patty Niemann,Professional Standards Administrator at (941) 328-1169.

3590 S. Tuttle Avenue Sarasota, FL 34239 941-923-2315 Fax 941-921-2074


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FORM #A-2

Sarasota Association Of REALTORS, Inc.3590 S. Tuttle Avenue, Sarasota, Florida 34239

Request And Agreement To ArbitrateNon-Member

1. The undersigned agrees and wants to submit to arbitration before a Hearing Panel of the Sarasota Association of REALTORS with

the understanding that the arbitration will be conducted pursuant to the Code of Ethics and Arbitration Manualof the Association (oralternatively, in accordance with the professional standards procedures set forth in the Associations Bylaws). The undersignedacknowledges having had the opportunity to review the Associations procedures or having been provided with a copy of theprocedures

2. I am informed that each person named below is a member in good standing of the Association (or Participant in its MLS) or was amember of said Association of REALTORS at the time the dispute arose.

3. A dispute arising out of the real estate business as defined by Article 17 of the Code of Ethics exists between me and (list all personsyou wish to name as Respondents to this arbitration.)

(Name) , REALTOR Principal(Address)

(Name) . REALTOR Principal(Address)

(Firm)______________________________________ Address________________________________________________

4. There is due, unpaid, and owing to me (or I retain) from the above-name persons the sum of $ . My claim ispredicated upon the statement attached, marked Exhibit "1" and incorporated by reference into this application.

5. The undersigned confirms that execution of this Agreement is wholly voluntary and, pursuant to this Agreement, agrees andpromises to abide absolutely by the award of the Hearing Panel and in the event of adverse decision, to make prompt complianceand to pay the fees and costs as provided by the Associations Professional Standards procedures.

6. I enclose my check in the sum of $250.00 for the arbitration filing fee.

7. I understand that I may be represented by legal counsel, and that I should give written notice no less than 15 days before the hearingof the name, address, and phone number of my attorney to all parties and the Association. Failure to provide this notice may resultin a continuance of the hearing, if the Hearing Panel determines that the rights of the other party(ies) require representation.

Each party must provide a list of the names of witnesses he/she intends to call at the hearing to the Association and to all otherparties not less than 15 days prior to the hearing. Each party shall arrange for his/her witnesses to be present at the time and placedesignated for the hearing.

8. I declare that this application and the allegations contained herein are true and correct to the best of my knowledge and belief andthis request for arbitration is filed within 180 days after the closing of the transaction, if any, or 180 days after the facts constituting thearbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.

9. If either party to an Arbitration Request believes that the Grievance Committee has incorrectly classified the issue presented in therequest (i.e., mandatory or voluntary), the party has 20 days from the date of receipt of the Grievance Committees decision to file awritten appeal of the decision. Only those materials that the Grievance Committee had at the time of its determination may beconsidered with the appeal by the Association of Directors.

10. Are the circumstances giving rise to this arbitration request the subject of civil litigation? _____Yes _____ No

COMPLAINANT(S):

Name Type/Print Signature of Complainant Date

Address Telephone

Name Type/Print Signature of Complainant Date

Address Telephone


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AGuidetothe

ProcessandProceduresof

EthicsandArbitration


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Table of Contents

Question s and Answers ................................................................................... 1

Complaint against a REALTOR ...................................................................... 1Is Your Complaint Ethics or Arb it ra tion ........................................................... 1

Who May Fi le an Eth ics Complaint ................................................................... 1

Who May Fi le an Arb it ration Complaint ........................................................... 2

What Can SAR Do ............................................................................................ 2

How Do You Fi le .............................................................................................. 3

Ethi cs Complaint ......................................................................................... 3

Arbi tr at ion Request .................................................................................... 4

How Does SAR Process the Com plaint ............................................................ 4

Function of Grievance Commit tee ................................................................... 4

Ethi cs Complaint s ....................................................................................... 4

Arbi tr at ion Request s ................................................................................... 5

Function of the Profess ional Standards Committ ee ........................................ 6

Procedura l Flow Char t ..................................................................................... 7


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Questions and Answers

Ethics Complaints & Arbitration Requests

Q. Do you have a complaint concerning a REALTOR?

A. The first thing that must be determined in processing a complaint with theSarasota Association of REALTORS (SAR) is whether the real estate agentinvolved is a REALTOR and a member of SAR, or receives MLS through SAR.Not all real estate agents are REALTORS. Only those who belong to anAssociation of REALTORS can use the term REALTOR. When joining anAssociation, all members agree to abide by the Code of Ethics as a continuingcondition of membership. It is because of this obligation to abide by the Code ofEthics that you can file complaints at an Association of REALTORS.

Q. Is your complaint Ethics or Arbitration?

A. You may have to consider whether your complaint concerns an ethics matter oran arbitration of a monetary dispute. An ethics complaint charges that aREALTOR has violated an Article(s) of the Code of Ethics.

Arbitration is a means of resolving a monetary dispute arising out of a real estatetransaction that the parties have been unable to solve themselves. An arbitrationcomplaint or request is a simple notice by a member of a disagreement withanother member, usually a commission dispute. Sometimes arbitration concerns

a dispute between a member of the public and an Association member.Arbitration does not award damages.

If your situation concerns both ethics and arbitration, SAR will handle therequests separately. You may file both at the same time however, arbitration isalways held first. Only when arbitration is complete will the ethics complaint beconsidered.

Q. Who may file an ethics complaint?

A. Anyone. Any person, whether a member of SAR or not, may file a complaint

against a SAR member alleging a violation of the Code of Ethics, providing thecomplaint:1. Is in writing.2. Is signed by the complainant.3. States the facts surrounding the case.4. Is filed within 180 days (6 months) after the facts could have become known.

The Complainant may file a complaint from any location provided it is filed withthe Association having jurisdiction over the individual named in the complaint.


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Q. Who may file an arbitration request?

A. REALTORS, primary or secondary members, who areprincipal brokers.

REALTORS, primary or secondary members, who are not principals,provided his or her principal broker joins in the request.

Clients or customers of the REALTOR (see note below). The request also must:

1. Be in writing.2. Be signed by the Complainant.3. Indicate the amount in dispute.4. Be filed within 180 days (6 months) of either closing of transaction or

after the facts could have become known, whichever is later.

Arbitration facilities are provided by SAR as a service to its members. Arbitration is nota disciplinary proceeding nor does it award damages. By becoming and remaining amember of SAR, REALTORS bind themselves to arbitrate certain disputes.

In all arbitrable matters, mediation is offered prior to a formal hearing.

Be aware that not every situation may be arbitrated at SAR. There are conditions andlimitations to be considered, which will be explained to you by SARs ProfessionalStandards Administrator as the process continues.

Note: Disputes involving clients or customers require that the client or customersign an agreement to arbitrate and to be bound by the arbitration. Whether thecomplainant is a client or a customer and whether the dispute is one that can beprocessed by SARs Grievance Committee is determined by SARs GrievanceCommittee.

Q. What can SAR do?

A. SAR has limitations to its authority regarding its members. Below is a list ofthose limitations:1. SAR cannot hold an administrative hearing for violations of the Florida real

estate license law or any other alleged violation of the law. It hasjurisdiction only over violations of membership duties. The Florida RealEstate Commission has sole control of the real estate agents license tosell real estate. If you think a person has violated the law, you should be

contacting another agency.2. For the same reason, SAR cannot suspend or terminate the real estatelicense of one of its members.

3. SAR can in the case of an ethics violation being determined in a dueprocess hearing procedure, administer discipline to the REALTOR inone or more of the following ways:

Send a letter of warning or reprimand to the member. Direct the member to attend an ethics class or other

training appropriate to the violation.


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Appropriate and reasonable fine not to exceed $5,000 (this fineis not awarded to the complainant).

Place the member on probation for a stated period of time notless than thirty (30) days or more than one (1) year.

Membership of the individual suspended for a stated period of time notless than thirty (30) days or more than one (1) year.

Expel the member from membership with no reinstatement privilege for aspecified period of one (1) to three (3) years, with reinstatement ofmembership to be by application only after the specified period ofexpulsion on the merits of the application at the time received.

Suspension (30 days to 1 year) or termination of MLS rights and privileges(1 to 3 years).

If Respondent is found in violation of the Code of Ethics, an administrativeprocessing fee of $250 will be assessed by SAR for the first offense and$500 for each subsequent offense.

4. Monetary damages cannot be a part of an ethics proceeding.6. SAR can arbitrate certain money disputes and must in some situations,

but the member of the public must agree in writing to arbitrate the disputeand to be bound by the decision.

7. The award in arbitration cannot be greater than the amount in dispute, maynot include "punitive" damages and may not include attorney's fees unlessexpressly provided for in the agreement giving rise to the dispute.

Q. How do you file?

A. Now that you know the ground rules, if you wish to file a complaint, heres howyou do it.

Ethics Complaints

If you want to file an ethics complaint, you need to follow these steps:

1. Contact SARs Professional Standards Administrator (328-1169) to request anethics complaint package.

2. Complete and sign the complaint form (#E-1). This form requests you to namethe REALTOR(s) in question as the Respondent(s).

3. List the Article(s) of the Code of Ethics that you think the REALTOR hasviolated. A copy of the Code of Ethics is included in this packet.

4. Attach an explanation of the situation surrounding the complaint. Be as specific

as possible. State the details, including what, when, where, why and how youthink each Article was violated.

5. Attached copies of any and all pertinent documents that prove your points suchas listing agreement, purchase and sales agreements and addenda. If you havenotarized statements from witnesses, include those also.

6. Send the entire package, keeping a copy for yourself, to SAR to the attention ofthe Professional Standards Administrator. The complaint and response will thenbe processed through the Grievance Committee.


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Arbitration Requests

The process is very similar to filing an ethics complaint. A request forarbitration form will be supplied by SARs Professional Standards Administrator. Stepsto follow are:

1. Contact SARs Professional Standards Administrator (328-1169) for an

arbitration request package.2. Name the Designated REALTOR and REALTOR(s) involved (Respondents).

The Designated REALTOR with a firm must be named in most instances inaddition to the REALTOR(s) involved.

3. Indicate the amount in dispute.4. Include an explanation of the situation. State why you feel you are entitled to an

award of some kind. Remember; dont include allegations of unethical conduct inyour argument. If you think there have been ethical violations, they can behandled separately with an ethics complaint.

5. Attach copies of any and all pertinent documents such as listing agreements,purchase and sales agreements, and closing statements, plus any notarizedstatements from witnesses.

6. SAR requires an arbitration deposit of $250 and it must be included. Details areincluded in the arbitration packet you receive.

7. You will be asked to sign an arbitration agreement (Form #A-1, Member or Form#A-2, Nonmember) indicating your commitment to abide by the decision of theHearing Panel.

8. Send all of these items to SAR to the attention of the Professional StandardsAdministrator. Remember, it is not unusual for SAR to receive an ethicscomplaint and an arbitration request surrounding the same set of circumstances.If you think the REALTOR(s) violated the Code of Ethics and you have amonetary dispute with him or her, you must complete both forms.

Q. How does SAR process the complaint?

A. The complaint will be processed through the Grievance Committee. You will beadvised of the Grievance Committees decision in writing. The Committee mayeither forward the request to the Professional Standards Committee for a hearingor dismiss it as unarbitrable.

FUNCTION OF THE GRIEVANCE COMMITTEE

Ethics Complaints: The Grievance Committee reviews complaints when received bySAR. The Committee determines whether the complaint has sufficient merit for furtherconsideration, somewhat like a grand jury. It does not determine guilt or innocence.The Committee will do one of three things:

1. Forward the case for a Professional Standards Hearing, or2. Dismiss it, if the complaint is determined to be frivolous, harassing or unfounded

or not within the time limitations, or3. Postpone its decision based on getting more information from you or determining

that the case may be more appropriately considered for arbitration.


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Also before it reaches a decision, the Committee may request additionalinformation or clarification from you regarding your complaint.

If your complaint is dismissed by the Committee, you have the right to appeal thedismissal to the Board of Directors. A panel of five (5) members from the Board ofDirectors will be selected by the President of the Association. In the case of an appeal,

the Directors re-examine the materials submitted to the Grievance Committee and caneither uphold or overturn the Grievance Committees decision. Complainants andRespondents are not present for the appeal.

If the complaint is to be given further consideration, it will be sent to the ProfessionalStandards Committee for a hearing.

Arbitration Requests: The Grievance Committees role in arbitration is different fromethics complaints. Its only function is to make such preliminary investigation todetermine whether the matter is subject to arbitration by SAR. Arbitration sometimes isa duty and sometimes a privilege. The Committee must decide whether your situation

fits into the Duty or the Privilege category. It does this by determining:

1. Where you are authorized, under the rules, to invoke arbitration.2. Whether the controversy described is an arbitrable matter.3. Whether the arbitration is mandatory or voluntary to the people involved (this

simply means whether arbitrating the dispute is compulsory or not).4. Whether either the amount in dispute is too small or too large, or the matter is too

legally complicated for SAR to consider.5. Whether or not the request is filed within the time frame (180 days).

Such a review could result in the release of SAR members from the obligation to

arbitrate, and thus free you to seek other recourse in order to resolve the dispute.

If the Grievance Committee determines that a matter is arbitrable, it also will notify theparties that a mediation procedure is available as a preliminary, voluntary alternative toarbitration. If the Committee determines that the matter is not arbitrable, theComplainant and Respondent deposits will be refunded.

As in the case of ethics complaints, you may appeal a dismissal of an arbitrationrequest to SARs Board of Directors. A panel of five (5) Board of Directors memberswill be selected by the President of SAR to review the materials submitted to theCommittee and can uphold or overturn the Grievance Committees dismissal.

Complainant and Respondent are not present for the appeal.

In either ethics or arbitration cases, you will be informed promptly of the GrievanceCommittees decision. If the Grievance Committee forwards the complaint or request toa hearing, it is assigned to SARs Professional Standards Committee.


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FUNCTION OF PROFESSIONAL STANDARDS COMMITTEE

The function of this Committee is to hold ethics and arbitration hearings.

The Professional Standards Committee Chair will appoint a Hearing Panel, consisting offive members of the Professional Standards Committee of the SAR chosen on the basisof experience, temperament and objectivity.

A hearing will be scheduled and both the Complainant and Respondent will be notifiedof the hearing date, time and place. These hearings provide an opportunity for theComplainant and the Respondent to explain his or her side of the story by presentingtestimony and witnesses, if any.

Once all the facts have been presented to the appointed Hearing Panel, the Panel willgo into executive session to determine whether the Code of Ethics has been violated,or, in the case of arbitration, how the dispute should be settled. The Complainant andRespondent will be notified of the Panel's decision by certified mail.

You will be informed by SAR about each step of this process as it occurs. Complainantand Respondent also will be given instructions about the hearing procedures prior to thehearing. The entire process usually will take a minimum of 60 days, but may takelonger. In arbitration cases, the prevailing partys deposit will be refunded.

If you have any questions relating to filing your complaint, please call SARsProfessional Standards Administrator at (941) 328-1169.

Send all correspondence to:

Professional Standards Administrator

Sarasota Association of REALTORS

3590 S. Tuttle Avenue

Sarasota, FL 34239


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PROCEDURAL FLOW CHART

Ethics Complaint or Arbitration Request Received

Sarasota Association of Realtors Grievance Committee ReviewEthics Complaints & Arbitration Requests

1. Acceptable form?2. All necessary parties named?3. Filed within 180 days (6 months)?4. Is the Respondent a member of the Association?5. Was Respondent a member when this transpired?6. Litigation?

Ethics Only Arbitration Only7. Are the correct Articles cited? 7. Mandatory or voluntary arbitration?8. Should some be added or deleted? 8. Too small, too large or too complex?9. If true on face value, is it a possible

violation?

Dismissed asnot valid

May appealdecision toBoard ofDirectorswithin 20days

or


Mail Challenge Formshowing ProfessionalStandards HearingCommittee Members


Hold Hearing

Findings of Facts - notify bothparties - 20 days to appeal if desired

Findings of Facts validated by Boardof Directors

Validation notice by Board sent toboth parties

Dismissed as notarbitrable

May appeal decisionto Board of Directorswithin 20 days

or Offer mediation

If parties do not wish tomediate or mediation notsuccessful


Mail Challenge Form showingProfessional Standards HearingCommittee Members


Hold Hearing

Award (if any) of ArbitratorsNotify both parties

20 days to appeal only on procedureview

Phone Call

Revised: 7/2007

Arbitration Forms

Documents