Professional Standards

As REALTORS®, we’re all considered to be Professionals. We are held to a higher set of Standards than the agent that does not belong to a professional association such as our Columbus Board of REALTORS®. When something goes wrong in a real estate transaction, the Board’s Professional Standards Committee may be called on to resolve the issue through either arbitration or an ethics complaint.

As a REALTOR®, you agreed when you joined the Board to arbitrate any disputes between yourself and another REALTOR® through the services of your Board of REALTORS®. An Arbitration hearing will resolve a dispute over a commission.

As a REALTOR®, you agreed when you joined the Board to conduct your business according to the NAR Code of Ethics. An Ethics hearing occurs when someone feels a REALTOR® has done something that violates our Code of Ethics.

When that someone (the Complainant) files a complaint with the Board, it’s forwarded to the member it was filed against (the Respondent) for a reply. If the reply does not satisfy the Complainant, the case is sent to the Grievance Committee. If the Grievance Committee feels the complaint merits a hearing, it’s forwarded to the Professional Standards Committee for a hearing.

The hearing panel will consist of five members selected from the Board’s Professional Standards Committee. To avoid conflicts of interest, none of the panel members will be from the same company or affiliated with the same franchise as either the Complainant or Respondent. Both parties to a complaint have the opportunity to object to any individual being selected for the panel.

Members of the Professional Standards Committee have spent at least three years on the Grievance Committee and have many years of experience as a REALTOR®. All members are required to attend an annual training workshop to be kept current on changes in the Code of Ethics and interpretations from the National Association of REALTORS®.

During the hearing, each party is allowed to present their case, introduce exhibits, have testimony from witnesses, and cross-examine the other party and their witnesses. The hearing is a formal process, and some members choose to be represented by legal counsel. The members of the hearing panel may also question the parties or witnesses to clarify issues. The hearing does not end until both parties feel they have had fair opportunity to present their case. Once the hearing has ended, the parties are excused to allow the panel to discuss the case and render it’s findings.

In an arbitration case, the panel will find in favor of one of the parties, normally in the full amount of the dispute. The standard of proof on which an arbitration hearing decision is based is called the preponderance of evidence. Preponderance of evidence is defined as that evidence that is of greater weight or more convincing than the evidence offered in opposition. Most arbitration cases that come to the Board are when two different co-operating brokers claim to be procuring cause of the sale.

The panel’s decision in an Ethics case may be more difficult than in arbitration, in that the panel must find much more than just a preponderance of evidence. The standard of proof in an ethics complaint is described as clear, strong and convincing, or that which produces a firm belief. The hearing panel must determine if the specific articles of the Code of Ethics included in the complaint have been violated, and will issue their written findings of fact to demonstrate their decision.

The hearing panel must then recommend sanctions they believe will serve to educate the member so that the violations are not repeated. The panel may also consider whether the Respondent knew what they were doing was unethical, should have known, or just made a poor judgment in their actions. Levels of sanctions imposed can range from a letter of warning or reprimand, to requiring education classes, or payment of a fine up to $5,000. In addition to any other sanctions, members found in violation of the Code of Ethics are automatically assessed an administrative fee of $500. Sanctions imposed on members through the ethics enforcement process should be considered a way to educate our members on following the Code of Ethics.