The NAR Ethics Complaint Process

Any person — whether a Realtor, a consumer, or a member of the public — can file an ethics complaint against a Realtor. Complaints must be filed with the local board of Realtors where the respondent holds membership within 180 days of the alleged violation (or within 180 days of when the complainant knew or should have known of the violation). The complaint must identify the specific Articles of the Code of Ethics alleged to have been violated and provide a narrative description of the facts supporting the claim.

The complaint is reviewed by the board's Grievance Committee, which determines whether the allegations, if true, would constitute a violation of the Code. The Grievance Committee does not determine the truth of the allegations — it merely assesses whether the complaint states a viable claim. If the complaint is dismissed, the complainant may appeal. If the complaint is forwarded, it proceeds to a hearing before the Professional Standards Committee.

The hearing is conducted before a panel of trained Realtor volunteers who serve on the Professional Standards Committee. Both the complainant and the respondent have the right to present evidence, call witnesses, and make opening and closing statements. The parties may be represented by legal counsel, although many choose to represent themselves. The standard of proof is "clear, strong, and convincing evidence," which is higher than the preponderance standard used in most civil cases but lower than the beyond-a-reasonable-doubt standard used in criminal cases.

The hearing panel deliberates in private and issues a written decision. If a violation is found, the panel determines the appropriate sanction, which may include a letter of warning, a fine (up to $15,000), required education courses, probation, suspension of membership (up to 3 years), or expulsion from the association. The respondent has the right to appeal the decision to the board of directors.

NAR's Professional Standards process handles two distinct types of proceedings: ethics complaints and arbitration requests. Ethics complaints address alleged violations of the Code of Ethics and result in disciplinary sanctions. Arbitration requests address disputes between Realtors involving contractual rights to compensation — for example, disputes over who is entitled to a commission when multiple brokers claim to have been the procuring cause of a sale.

The arbitration process is binding on the parties, meaning the arbitration panel's decision on compensation disputes is final and enforceable. The standard of proof in arbitration is "preponderance of the evidence." While ethics and arbitration proceedings may arise from the same transaction, they address different issues: ethics focuses on conduct, while arbitration focuses on compensation.