2005 Professional Standards Committee Report

Got Professional Standards? Here's how!

Andrew Show, Chair
Professional Standards Committee

We are fortunate to have a phenomenal online resource right on our own web site at www.ColumbusRealtors.com! Our CBR staff has produced one of the best online resources for professional enhancement and development, continuing education, and information about Ethics and Professional Standards in the nation. Click here to view the Professional Standards information.

Whether you are a rookie or veteran, agent, manager, broker, or owner, the information located in the Member Services Section includes a "How To" section, FAQ's, Ethics and Arbitration forms, how to file a complaint, available mediation services, and especially important - case interpretation's relating to the REALTOR® Code of Ethics.

These Articles are often amended or new articles introduced each year during the NAR Convention, so it's especially important to review them and be well versed on these.

I'd highly recommend that brokers and managers incorporate this web-based resource in their ongoing office meetings, and even add a desktop icon to hyperlink directly to this valuable resource on our CBR site!

When something goes wrong, or is perceived to go wrong, in a real estate transaction and a dispute arises, the board's Professional Standards Committee may be asked to resolve the issue through either Arbitration or an Ethics complaint.

Arbitrations determine disputes over money. REALTORS® agree to Arbitrate their commission disputes through the services of our Columbus Board.

Ethics Complaints determine disputes over behavior. They arise when a member of the public or a REALTOR® believes another REALTOR® has done something (or not done something!) that violates the REALTOR® Code of Ethics, which all REALTORS® have agreed to conduct their business according to this set of standards as part of their membership.

When someone (the Complainant) files a complaint with the Board, the complaint is then sent by the Board to the person it was filed against (the Respondent) for their review and response. If the response does not satisfy the Complainant, the Grievance Committee reviews the case. If the Grievance Committee feels the complaint has merit, and meets certain criteria, it is forwarded to the Professional Standards Committee for a hearing.

Note that the Grievance Committee does not address whether a complaint is true or not, so having it forwarded is not proof that a violation occurred, similar to how a civil grand jury operates.

Professional standards hearing panels are members that have served for at least three years on the Board's Grievance Committee, and that have attended annual professional standards training workshops. Panel members chosen to hear a complaint are selected to avoid any real or perceived conflicts of interest. For example no panel members may be related to or affiliated with the same company or even the same franchise of either the Complainant or Respondent. Both parties to a complaint also have the opportunity to reject specific members of the Committee being assigned to the panel based on real or perceived conflicts of interest or prior relationships.

During an actual hearing, both parties are heard and are allowed full opportunity to present their case, exhibits, witness testimony, and to cross-examine the other party and their witnesses. Since the hearing is a formal process, and may involve a significant amount of money, members may choose to be represented by their own legal counsel. Since the members of the hearing panel know they are being relied on to make a decision at the end of the hearing, panel members will question parties and witnesses to clarify issues.

After all parties are heard and the formal hearing has come to an end, the hearing panel goes into executive session to discuss the facts and to render their findings. The panel decision in an Arbitration is based on a preponderance of evidence presented during the hearing, and will generally come to a conclusion that is either all, or none, of the dollar amount in dispute, and in favor of one party or the other.

The panel decision in an Ethics Complaint may be much more difficult than in an Arbitration, in that the panel must find much more than just a preponderance of evidence. Following the evidence and testimony heard in the ethics hearing, the hearing panel must put their findings of fact in writing. They must find clear, strong and convincing evidence that the allegations in the complaint are true and that the member's actions violated the Code of Ethics.

The hearing panel must recommend sanctions against the member that is found in violation they believe will serve to educate the member involved. The panel's intent is to see that others are not harmed in the future by similar behavior.

The hearing panel may take into consideration whether the Respondent knew what they were doing was wrong, or should have known.

Sanctions, depending on the seriousness of the violation, can range from a letter of warning or reprimand, to requiring additional education classes or payment of a fine up to $5,000, and may include a combination of several sanctions.

In addition to any other sanctions imposed, members found in violation of the Code of Ethics are automatically assessed an administrative fee of $500. The findings and recommendations of the hearing panel only become final when approved by the CBR Board of Directors.