How to File an Ethics Complaint
Contact the Professional Services Department at 703/207-3214 or spetcher@nvar.com to obtain a copy of the appropriate complaint forms. We will need to verify that the individual who is accused of violating our rules is a REALTOR® member of NVAR. Our association is a strictly voluntary organization and some real estate agents are not members of NVAR. In cases when the individual is not a member of NVAR, we can usually determine if the individual is a member of another local association of REALTORS®. If this is the case, we can provide you the appropriate contact information to file your complaint with the individual's local association of REALTORS®. When the complaint involves a REALTOR® member of NVAR, we will provide you with the appropriate forms and instructions for filing the complaint.
Complaint Process
For a flow chart of the process, click here.
1. The Grievance Committee: The Grievance Committee handles initial review of formal written complaints and determines if the rules apply. If the rules apply to the case, it is forwarded to the Professional Standards or Arbitration Committee for further consideration. The Professional Standards Committee provides the panels that hear evidence and issue decisions in each disciplinary complaint. The Arbitration Committee provides an alternative dispute resolution system to resolve commission or other business disputes involving REALTORS®.
2. The Hearing: The following is a brief summary of the procedures for a Disciplinary Hearing. These are the procedures that apply to the actual Hearing once the case has been classified and forwarded by the Grievance Committee for a formal hearing.
Outline of Procedures - Ethics
3. Disciplinary Sanctions: If the Professional Standards Hearing Panel determines there is clear, strong, and convincing evidence of a violation of the rules, the panel will recommend disciplinary sanctions to the Board of Directors for final approval. The following links provide additional information on the disciplinary sanctions available to the Hearing Panels.
Disciplinary Sanctions - Ethics and Membership Duties
Disciplinary Sanctions - Lockbox Rules
What NVAR Cannot Do for a Complainant
NVAR is a voluntary membership trade association and has legal limits on its authority. For instance we can not hold a trial to determine criminal violations of state law or award monetary damages to an injured party in a case. These are powers that are reserved to the courts. We also do not have the power to revoke an individual's real estate license since we do not have the power to license real estate agents or brokers. This power is only within the authority of the courts and the Virginia Department of Professional and Occupational Regulation.
How to File an Arbitrations
Arbitration is an alternative dispute resolution program that is offered as a service to REALTOR® members which provides a forum for resolving business disputes in lieu of litigation. Arbitrations are completely separate from ethics hearings. Arbitrations are held when both agents acted legally and ethically, but a legitimate dispute still arose between the agents. It usually involves compensation disputes between brokers in two different firms. Arbitration is not about sanctioning agents for bad behavior - it exists to resolve business disputes involving REALTORS® in the event that the REALTORS® have been unable or unwilling to resolve the dispute themselves.
Mandatory vs. Voluntary
REALTORS® are not obligated to use NVAR's arbitration services to resolve disputes. REALTORS® may resolve disputes themselves or submit the dispute to other venues including courts. However, if one party who is eligible to use the association's Arbitration services submits the claim to NVAR, then the other party may be obligated to participate in arbitration and abide by the arbitrators' decision if the case is classified as mandatory.
Mandatory vs. Voluntary Arbitration
Arbitration Process
In arbitrable cases, NVAR's Arbitration Committee convenes a panel of impartial, unbiased, and experienced REALTORS® to consider your case. Designed to ensure that the due process rights of all parties are protected, claimants and respondents may be represented by attorneys, call witnesses, present evidence, and challenge the qualifications of the panel members selected to hear the case.
The parties also enjoy a limited right to request a procedural review or file a legal challenge to the decision if they believe that there were procedural deficiencies or other irregularities that constitutes a deprivation of due process. However, this is not an appeal on the decision itself, only the procedures used in conducting the hearing. To learn more about the procedures for an arbitration hearing, click here.
Filing a Request for Arbitration
Mediation
In addition to Arbitration services, NVAR also offers Mediation as an alternative for resolving commission or other business disputes. Mediation has become a popular alternative to Arbitration because it is quicker, easier, and provides the parties with more control over the final resolution of the dispute.
Mediation allows members to negotiate a mutually agreeable solution by providing a impartial third party to facilitate discussion between the parties. It is a voluntary process that requires the consent of both parties and is generally faster and less expensive than arbitration. Mediation also allows members to avoid the confrontational and adversarial nature of an arbitration hearing. The goal is to foster dialog and reach an understanding that allows the parties to find a middle ground to resolve the conflict.
Mediation vs. Arbitration
In arbitration, the parties are generally more concerned with testifying to the panel than talking through their dispute. Arbitration awards are generally an "all or nothing" proposition where one party is awarded money and the other is left with nothing. Feedback indicates that REALTORS® emerge from successful mediations with a higher level of satisfaction with the result than REALTORS® who participate in arbitration. Therefore, the Professional Services Department urges you to consider mediation as an alternative when filing an arbitration request. If mediation is unable to resolve the dispute, the parties can proceed to an arbitration hearing without delay.
The following is a link to the Mediation Flyer from the National Association of REALTORS® which explains the benefits of mediation.
If you have any questions, please contact the Professional Services Department at 703.207.3214 or spetcher@nvar.com.