ARBITRATION REQUESTS

An arbitration request provides a forum for the resolution of a contractual business dispute involving the payment of funds related to a real estate transaction, when the parties have been unable to resolve the dispute among themselves.

If your situation involves and ethics complaint and an arbitration request, the Association will handle each issue separately. The Association will review the Ethics complaint only after an Arbitration request has been settled.

Who may file an Arbitration request?
Realtors® who are principal brokers, Realtors® who are not principals (provided the principal broker joins the request) and clients of a Realtor®. Note: Principal Broker is defined as a sole proprietor, partner, corporate officer, majority shareholder or branch office manager of a real estate firm.

How do I file an Arbitration request?

• File within 180 days after the closing of the transaction if any, or 180 days of when the facts could have been know in the exercise of reasonable diligence, whichever is later.
• Complete and sign the request from the Pennsylvania Association of Realtors®
• Name the Broker/Principal, brokerage or both
• Indicate the amount involved in the dispute.
• Include an explanation of the circumstances surrounding the situation, state why you feel you are entitled to an award of some kind.
• Attach copies of any and all pertinent documents such as listing agreements, purchasing agreements, closing statements, etc.
• Include a $500 deposit with your Arbitration request.
• The Pennsylvania Association of Realtors® will ask all parties involved in the Arbitration proceeding to sign an arbitration agreement. This indicates your commitment to abide by the decision of the Hearing Panel.
• Submit all materials to the Pennsylvania Association of Realtors®, 500 N 12th Street, Lemoyne, PA 17043 Attn: Professional Standards Administrator or email laaron@parealtors.org
  

How are Arbitration requests processed? 
The Grievance Committee will consider the following questions when reviewing an arbitration request:

• Whether you are authorized under the professional standards rules to request arbitration.
• Whether the controversy described is an arbitrable matter
• Whether the arbitration is mandatory or voluntary for the parties involved in the request
• Whether the amount in dispute is either too small or too large, or the matter too legally complex for the Association to consider.
• Whether the matter is currently the subject of litigation.
  

Professional Standards Committee 

The function of this committee is to hold ethics and arbitration hearings. When a hearing is scheduled, both parties will be notified of the time, date and place. The hearing provides an opportunity for the complainant and respondent to explain their side of the story by presenting, testimony, evidence and witness before a hearing panel. 

Once all of the facts have been presented, the parties will be dismissed and the hearing panel will enter into an 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 Professional Standards Administrator will inform you of each step in the process. If you have questions about filing an ethics complaint or request for arbitration or need the forms to do so, please contact the Pennsylvania Association of Realtors® at 1-800-555-3390.