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Part Ten, Section 46 — Duty to Arbitrate Before State Association

Part Ten, Section 46 — Duty to Arbitrate Before State Association

By becoming and/or remaining members of this Board, all members bind themselves and agree to submit to arbitration by the arbitration facilities of the __________ (state) Association of REALTORS® any dispute with a member of any other local Board or _________ (state) Association of REALTORS®, provided:

  1. The dispute is a dispute as defined and for which arbitration is required by Article 17 of the Code of Ethics, and
  2. The ____________ (state) Association of REALTORS® has established facilities for such arbitration.*

Disputes as defined in Article 17 of the Code of Ethics requiring arbitration between members having no commonality of Board membership or MLS participation may be submitted and conducted under the procedure established in Part Eleven of this Manual, subject to such modification as may be required by applicable state law. Whether arbitration is conducted by the state association or by an interboard arbitration panel pursuant to Part Eleven, the costs charged to parties, including filing fees, may not exceed $500. Where arbitration is conducted by the state association, any costs incurred that exceed the parties’ filing fees may be recouped from the parties’ local association(s). (Revised 5/06)

The method set forth in Part Eleven may also be utilized for the conduct of arbitration between Board Members of different Boards of different states, subject to the parties’ voluntary agreement in advance to accept the place, date, and time established by the arbitration panel thus chosen for a hearing, and to pay all costs of such arbitration as may be directed by the panel, and further subject to applicable state law of the respective states permitting such binding arbitration.


*The State Association as a Member Board of the National Association has the obligation to establish arbitration procedures and facilities consistent with applicable state law, as required by the Constitution, National Association, Article IV, and by Article 17, Code of Ethics of the National Association, for individual members of the State Association.