Ethics
Ethical Concerns & Disputes
Ethical Concerns & Disputes
If you have ethical concerns or a dispute with your REALTOR®, below are several tools MIBOR provides to address them. If you are not sure which of the options below best fit your scenario, you can follow the link below to submit your concern or you may contact us at (317) 956-1912.
How to Reach Out
How to Reach Out
There are several ways to address concerns related to the Code of Ethics, including submitting problem prevention reports, citation complaints, ethics complaints or utilizing the Ombuds program to help resolve issues. If you are not sure which of the options below best fit your scenario, you contact us at (317) 956-1912, or complete this form to get in touch with our Professional Standards department.
Problem Prevention Report
In situations where consumers (or REALTORS®) would simply like MIBOR to contact a REALTOR® member regarding a potential violation of the Code of Ethics, MIBOR rules or license law, Problem Prevention Reports can be a valuable option. Problem Prevention Reports are sent to the REALTOR® member as a pro-active effort to educate the member in the area of the potential violation and help to correct the issue going forward. This option may allow you to remain anonymous.
The Ombuds Program
What is the Ombuds Program?
Put simply, the Ombuds Program is informal mediation. In some cases, it can address and solve minor or ordinary complaints from the public. It can also solve inter-REALTOR® conflicts before they become serious problems. Like a mediator, MIBOR staff acting as an Ombuds helps parties find solutions. This program is free and available to consumers as well as MIBOR members.
How Can I Request Ombuds Services?
You can submit your request using the online form below. Please include the following information:
- Your name, contact information, and your role in the transaction (that is, buyer, seller, broker, etc.)
- The name and role of the REALTOR® you are complaining about.
- A description of the conflict
Submit this information in our online form below. You can also call our Professional Services Department at 317-956-1912. An Ombuds will be assigned to you and will attempt to contact you within two business days. All contact will be initiated by the Ombuds.
Ethics Complaint
Ethics complaints initiate a formal process against a REALTOR® member who you believe may have violated the REALTOR® Code of Ethics. Ethics complaints may be filed by consumers or other REALTORS®. Ethics complaints serve to educate members as well as provide a disciplinary process when violations have occurred. Before filing a complaint, be sure to understand the full procedure by reading the information provided below. Be sure to review the section below regarding Citation Complaints as well; in appropriate cases the citation process can be quicker and more efficient and can allow you to remain anonymous.
Citation Complaint
A citation complaint is a streamlined process for certain specific ethics violations. Because it bypasses the need for evidence to be presented at a hearing, citation complaints are reserved for violations which can be fully proven with documentation submitted with the complaint. This requires clear, strong, and convincing evidence of one of the citable offenses listed on the Citation Complaint Form. Once filed, MIBOR’s Grievance Committee will evaluate the complaint and, if it contains evidence proving that a citable offense has occurred, the committee will issue a fine to the Respondent. More information is available on our Frequently Asked Questions document.
Commission Disputes
Commission Disputes
REALTORS® have an obligation under the Code of Ethics to arbitrate commission disputes with other REALTORS® through MIBOR, rather than filing litigation to resolve the matter. However, MIBOR’s arbitration services are also available to consumers as well. If you have a contractual dispute with a MIBOR REALTOR® that arises out of a real estate transaction, you may choose to submit the dispute to MIBOR’s arbitration process instead of civil litigation. If a dispute is found to be arbitrable by the MIBOR Grievance Committee, a hearing panel will award the disputed commission based on a determination of procuring cause.
Additionally, MIBOR has adopted a mandatory mediation policy. This means that if the Grievance Committee finds your dispute to be arbitrable, you will first be required to participate in a mediation session, which is offered to assist parties in resolving commission disputes in an amicable way. Reaching a settlement in mediation is voluntary and a decision is not imposed upon the parties. Rather, it provides the forum for members to work together toward a mutually agreeable decision.
If mediation is requested absent a request for arbitration, the time limits for requesting arbitration remain unchanged. Parties may want to consider filing an arbitration request instead which will require that the matter be mediated prior to an arbitration hearing.
Arbitration
Consumers may elect to participate in MIBOR’s arbitration services which all REALTORS® have agreed to participate in, and be bound by, as a condition of their REALTOR® membership. If a contractual dispute arising out of a real estate transaction is found to be arbitrable by the MIBOR Grievance Committee, a hearing panel will award the disputed commission based on a determination of procuring cause.
Instructions and Requirements
Note: These instructions are for requests filed by consumers. REALTOR® members may file Requests for Arbitration from the Professionalism page within MIBOR Central.
Please have the following prepared in order to fill out the Request for Arbitration form below:
- A written request (online or printed form) for arbitration signed by the Petitioner.
- The name of the Managing Broker of the firm you are filing against under Respondent (also include the agent’s name if they are not the Managing Broker). Contact Professional Services at 317-956-1912, if you need assistance finding this information.
- A summary of events (recommended: include copies of any pertinent or relevant documents such as the purchase agreement, listing agreement, etc.)
- Nature of the controversy
- Amount in dispute
- Filing fee payment ($100.00)*
*If the Complainant (originator of the arbitration) is successful and the Professional Standards Committee so determines or the dispute is resolved prior to hearing, the filing fee shall be returned to the Complainant. NOTE: A request for arbitration is not considered filed until the $100.00 filing fee is received.
Filing Deadline
Requests for arbitration must be filed within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, or within 180 days of closing of the transaction, whichever is later.
Arbitration Worksheet
We highly recommend printing and using the arbitration worksheet. This worksheet is intended to assist Hearing Panels in identifying relevant issues and facts in determining questions of entitlement to disputed funds. It is intended to supplement—and not replace—a comprehensive list of questions.
Once the arbitration response is received at MIBOR, the request is forwarded to the Grievance Committee for the determination as to whether the matter is subject to arbitration.
The function of the Grievance Committee is to make only a preliminary evaluation of the request for arbitration as required to determine:
- whether the matter is properly arbitrable
- whether the proper parties are named in the request, and
- whether the arbitration is mandatory or voluntary according to the Code of Ethics and Arbitration Manual.
If the Grievance Committee finds the matter properly arbitrable, the dispute will be referred to the Professional Standards Committee for a hearing. However, because MIBOR has adopted a mandatory mediation policy, a mediation session will be set prior to hearing. If you have any questions regarding the procedure or the requirements, please contact our Professional Services Department at 317-956-1912.
Mediation
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.
The goal of 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.
Deadlines
Please note that 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.
Initiating Mediation
Follow the link below to complete the Petition for Mediation form. Upon receipt, staff will transmit the Petition for Mediation to the party named along with the Notification of a Petition for Mediation informing the Respondent that a request has been filed. The Mediator selection process then begins.
Mediation Process
Definition
Mediation is a process in which a neutral third person, called a mediator, acts to encourage and to assist in the resolution of a dispute between two or more parties. This is an informal, voluntary and non-adversarial process. The objective is to help the disputing parties reach a mutually acceptable agreement between or among themselves on all or any part of the issues in dispute. Decision making authority rests with the parties, not the mediator. Parties and their representatives are required to mediate in good faith but are not compelled to reach an agreement. The mediator’s role is to assist the parties in identifying issues, fostering joint problem-solving, and exploring settlement alternatives. For commission disputes, the principal broker or his designee (who has the authority to act on behalf of the principal broker) constitute the parties.
Filing Deadlines
Please note that 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. If mediation is requested absent a request for arbitration, the time limits for requesting arbitration remain unchanged. Parties may want to consider filing an arbitration request instead which will require that the matter be mediated prior to an arbitration hearing.
Initiating the Mediation
Simply complete the Petition for Mediation form either online or print the form and fax, mail, or email it to the MIBOR Professional Services Department, 1912 N. Meridian St., Indianapolis, IN, 46202 (fax to (317) 956-5244 or email to professionalservices@mibor.com). Upon receipt, staff will transmit the Petition for Mediation to the party named along with the Notification of a Petition for Mediation informing the Respondent that a request has been filed. The request will be reviewed by the Grievance Committee to determine arbitrability. The Mediator selection process then begins.
Selection of a Mediator
MIBOR staff will select names from our list of trained mediators. The Selection of a Mediator form will be transmitted to both parties to accept or challenge each listed. If none of the names are acceptable to the parties, more names will be added and the process begins again. If no names from the approved mediator list are acceptable, MIBOR will contact the Indiana Association of REALTORS® (according to the cooperative enforcement agreement) to utilize their mediators to fulfill the mediation requirement. MIBOR reserves the right to strike or remove a mediator from the selection process.
Scheduling the Mediation Session
Successful Mediation
If a mediation is successful, the parties will execute a Mediation Resolution Agreement which will detail the terms of the resolution. This agreement then becomes enforceable in a court of law. If an arbitration has been filed, this agreement will be sufficient in order to cancel the arbitration and refund the $100 arbitration deposit.
Unsuccessful Mediation
Because mediation is a voluntary procedure, a resolution may or may not be reached in the mediation session. If no agreement is reached and the parties should arbitrate the dispute, the mediation is not admissible as evidence in a hearing. The parties are then able to request arbitration and pay the $100 arbitration fee. This fee is refundable if paid by the successful party or if the parties reach a settlement prior to the conclusion of the hearing.
Record-keeping
Once a mediation is completed, no records will be kept other than the Mediation Resolution Agreement, if a settlement is reached.
We are here to help!
If you have a question about a potential scam, complaint against a REALTOR®, or any other professionalism matter, please get in touch with our Professional Standards department.
We are here to help!
If you have a question about a potential scam, complaint against a REALTOR®, or any other professionalism matter, please get in touch with our Professional Standards department.