Arbitration & Mediation
Commission Disputes
Financial Disputes Between Brokers
REALTORS® are real estate professionals who have chosen to join the National Association. When a they became a member of the Kosciusko Board of REALTORS®, they promised to abide by the duties of membership including strict adherence to the Code of Ethics.
In addition, REALTORS® agree as a condition of membership to arbitrate contractual disputes and specific non-contractual disputes as provided for in Article 17 of the NAR Code of Ethics.
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Traditionally, the real estate industry disputes rely on negotiation for solutions. If negotiation fails, litigation is often initiated. Mediation involves the skillful intervention of a third-party professional to help resolve disputes that arise between two or more parties.
Learn more about Arbitration and Mediation below.
Arbitration
Arbitration, a form of alternative dispute resolution (ADR), is a legal technique for the resolution of disputes outside the courts. The parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters,” or “arbitral tribunal”), whose decision (the “award”) they agree to be bound. It is a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides.
NAR’s Arbitration Manual will provide you with the following information plus much more:
MEDIATION
Using Mediation to Resolve Conflicts
Mediation is a form of facilitated negotiation in which an impartial third party attempts to help disputing parties reach a mutually satisfactory solution to their problems. Our Members have the opportunity to use mediation to resolve conflicts, with a process that is fair, flexible, and confidential.
Benefits – There are numerous benefits to choosing mediation. Because the mediation process is collaborative, not adversarial, it can help resolve issues while preserving positive relationships between all parties. Additionally, mediation often takes far less time and money than formal litigation.
Goal – The goal of a successful mediation is to have both parties come to a mutual agreement in writing upon the mediation’s conclusion. Once the agreement is signed, parties are legally bound to abide by its terms.
Deadline -The filing deadline for both mediation and arbitration is one hundred eighty (180) days after the closing of the transaction, if any, or within one hundred eighty (180) days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.
KBOR REALTOR® MEMBERS: LEGAL HOTLINE
A call to a real estate lawyer costs an average of $300 per hour. In just one hotline call, you can offset your IAR dues! To managing brokers only (or their designated agents), the REALTOR® Legal Hotline (1-800-444-5472) is available Monday through Friday from 9:00 AM – 5:00 PM. This service provides members with direct access to a qualified attorney who can offer information on real estate law, Real Estate Commission Regulations and related matters.
To report a concern to KBOR –
Email Liz Decker: kbor@kbor.com
