What Is It? How Does It Support Professionalism? 

ONE OF THE BIGGEST POINTS of pride in being a Realtor® is professionalism. The National Association of Realtors® (NAR) Code of Ethics defines professionalism in real estate. The NVAR Professional Services Department, with support and guidance from our member volunteers, facilitates processes to address allegations that a Realtor® member has violated the Code of Ethics. The purpose of this process is two-fold: 1) to hold members found in violation of the Code of Ethics accountable for their actions; and 2) to act as a deterrent from possible unethical behavior by other Realtors®.

"By choosing to participate in the Ombudsman Program, parties may arrive at a 'win-win' solution."

In order to provide due process to all parties in actions involving potential Code of Ethics violations, this process can be heavily procedure-oriented and time-consuming. One might ask if there is a more efficient means of resolving a conflict involving a Realtor® member. The answer is: YES, the NVAR Ombudsman Program!

Effective Jan. 1, 2016, NAR required all local and state Realtor® associations to offer Ombudsman services to members, clients and consumers; but what is the Ombudsman Program?

NVAR Ombudsman Linda Martin describes the program as “mediation- lite”: a voluntary process with the goal of creating a better understanding between two parties and a “real people” approach that can provide time-efficient solutions. It is possible that a complaint processed through the Ombudsman Program can be resolved in one day.

All NVAR Ombudsmen are experienced Realtor® members who have served on the Board of Directors or the Professional Standards or Grievance Committees.

When a potential Complainant contacts NVAR and provides information suggesting a complaint that revolves around a failure of communication or a misunderstanding, NVAR staff will encourage the voluntary use of the Ombudsman Program prior to the filing of a formal complaint. Once a request for Ombudsman services is received, staff will assign an Ombudsman to assist.

When NVAR Ombudsman George M. Bigus contacts potential Complainants, he introduces himself and asks the party to explain the problem that he or she is experiencing. Bigus will then contact the potential Respondent (and the Respondent’s broker, if appropriate) in an effort to secure a resolution between the parties.

Complaints best suited for the Ombudsman Program are uncomplicated and are often the result of a failure of communication. The Ombudsman reopens the lines of communication in an attempt to reach an understanding between the two parties. Disputes are often solved by providing basic education or knowledge. The Ombudsman can also facilitate an agreement between the parties to eliminate the need to file an ethics complaint.

By choosing to participate in the Ombudsman Program, parties may arrive at a “win-win” solution. A solution could be financial compensation, a release from a contract, an agreement to discontinue certain behavior, etc. Such agreements are not possible in the ethics complaint process, where the only recourse is sanctions against a member found in violation of the Code of Ethics with no award or compensation to the Complainant.

The Ombudsman Program can resolve many types of disputes, including but not limited to: property management, leases and security deposits; the removal of SentriLock lockboxes; basic misunderstandings relating to the execution of contracts; and areas of frustration that may not be related to a violation of the Code of Ethics. To be eligible for the Ombudsman Program, a complaint must be uncomplicated, communication-based, and not involve a large monetary amount. Additionally, if a complaint involves a possible violation of the public trust, it is ineligible for the Ombudsman Program.

The Ombudsman Program can also serve as an important screening function. Bigus points out that the Grievance Committee is only provided with the Complainant’s side of the story. Grievance Committee procedures require that the Committee assume that all allegations contained in the complaint are true, as the Committee considers whether the allegations represent a possible violation of the Code of Ethics. This means that it is possible for complaints to be forwarded for review when there is no actual violation. When the Ombudsman Program is utilized, an Ombudsman may better educate the Complainant about the process and the Complainant can then make an informed decision regarding whether the ethics complaint process is appropriate for his or her situation.

According to Professional Standards Committee member, Zinta Rodgers-Rickert, “the Complainant and Respondent should be encouraged to utilize [the Ombudsman Program] first, thus freeing up precious limited time and resources.”

However, not all cases qualify for the Ombudsman Program. Rodgers-Rickert believes it is important to reserve volunteer and staff resources for cases that are not eligible for the Ombudsman Program and must go through the ethics complaint process.

A high level of professionalism within the membership is vital to the success of Realtors® and the Realtor® brand. The NVAR Ombudsman Program is only successful with the support of member volunteers and members who utilize the program. The ultimate goal is to encourage higher levels of professionalism, resolve disputes, educate fellow members, and prevent violations of the Code of Ethics.

For additional information regarding the Ombudsman Program, visit NVAR.com/ombudsman or email prostandards@nvar.com.