NAR Professional Standards Video Replay Diane Mosley Nick Blair:
Full title: Citation Policy to Be Revised, SOP 17-5 and Interstate Arbitration, and Section 49/PS Policy Statement #52 Refusal to Mediate or Arbitrate
Full title: Citation Policy to Be Revised, SOP 17-5 and Interstate Arbitration, and Section 49/PS Policy Statement #52 Refusal to Mediate or Arbitrate
- Welcome everyone.
- Hi! My name is Diane Mosley. I’ve got one o’clock, so let’s start, and Nick Blair is with me here, my cohort in crime. He’s on the line as well, and he’ll be watching the chat if, in fact, you opt not to raise your hand and come, you know on video. Certainly you can drop a question or a comment in the chat as well. He’s watching that.
- So
- I have 4 things that I want to just touch on one is a reminder before we open it up to. You know general questions that you might have in the professional standards arena
- the first, st and these are all unrelated and in no particular order. I, just as a reminder, wanted to give a shout out to those realtor members who might be on Bylaw committee or the staff execs that work with the bylaws. Please be mindful to make those revisions. If you haven’t already to your Local Board bylaws
- to ensure compliance with National association policy. Starting this
- cycle right? We’ve made mention of this on a prior Zoom Meeting. Starting here in January. New members have to take a minimum of a 2 h fair housing requirement. In addition to write the 2.5 h code of ethics training that new members have historically had to take.
- and similarly, veteran members will have during this next 3 years, an opportunity to also take fair housing training again 2 h, our Fair Haven, 2.0 will suffice, and it’s at no cost. So keep that mind. Keep that in mind. I think, that launched
- last week mid last week. So let your members know that it’s now available at no cost if they’re mindful to just knock out that requirement here at the beginning of the year.
- So not that that’s just a reminder. I also wanted to
- remind individuals that have citation policy that there likely will be no changes with respect.
- with the exception of one, those of you that have adopted a citation policy and a schedule of fines. If you have included Article 4, that language is going to change. Sometimes I take the initiative and make the changes. If it is, I think, reasonable to do so. If
- it doesn’t take a lot of think power. I don’t want to, you know. Get in the way of our members that serve on our interpretation procedures, Advisory Board or on full committee, though I wanted to make sure I didn’t exceed my appropriate scope and authority.
- and we’re going to probably have the Advisory Board take a look at that schedule of fines. So watch for expected change to the language in the schedule of fines relating to Article 4.
- I wanted the members input on that, though, to make sure that we get it the way we want it.
- That was issue number 2.
- There’s been some confusion about
- interstate arbitration. So let’s say, for example, I’m a realtor here in Illinois. And let’s say, and I’m just making this up a realtor in Florida. refers someone to me, and we enter into an agreement, a contractual agreement that
- I’ll pay X amount of money for the successful transaction when these individuals are referred to me. So if the Florida realtor doesn’t come through right. Given our contractual agreement.
- I cannot mandate interstate arbitration, using the innerboard model state to state.
- In other words, I would not file that arbitration request with my local board here in Illinois to have the Local Board.
- you know, review it with their grievance committee, and then given Part 11 of our manual. Kick it over to the Local Board in Florida. If I want to
- compel that realtor principle to arbitrate, what I would need to do is, and this is consistent with standard of practice. 17 5. What I would need to do is file my arbitration request at the local association that retains jurisdiction of that realtor in Florida.
- I cannot mandate interboard.
- Between states. The last paragraph of Part 11 and those of you that have your manual. That’s on page 191
- of the manual. The last paragraph makes that clear. And again, it’s standard practice, 17 5. That makes it clear that how I can compel arbitration is following that arbitration request at the local Board, where that respondent in Florida is in my example.
- If I were to try to go into board, interstate by filing it with my board, and then, if my board referred it on for hearing, and then referred it to the Local Board in Florida. That would be a voluntary arbitration that would not be mandatory. So just a point of reference. I’ve seen a little bit more of that occurring lately. So I just wanted to
- spend just a moment making sure everybody is clear on that particular
- nuance. And then the last thing that I wanted to speak to. We have policy statement number 52, and I’m on page 135 of the manual.
- and it requires boards to provide mediation right? So I want to make mention of the fact, though, that that policy statement, even in associations that mandate the arbitration of otherwise arbitrable issues. They require their members to mediate.
- You cannot find someone in violation of their membership duty to mediate until they have the option of initially declining to mediate until the Grievance committee retains jurisdiction of that arbitration request and classifies it as mandatory.
- And the other section that is critically important. And I’ve seen this bubble up a couple different times, and I’m on page 49 now.
- I’m sorry I’m in section 49. I’m on page 151.
- There’s a provision in the code of Ethics and arbitration manual that isn’t. Well, it’s a huge book, right? So it’s just one small paragraph. It’s a second paragraph in Section 49,
- and what it says is that there can be no charge. I’ll just read it. There can be no charge that there’s been a refusal to arbitrate or mediate, if required by the board until the grievance committee determines the matter is arbitrable and of a mandatory nature, and the respondent fails to submit to arbitration or mediation before the board.
- What I recently most recently had is
- someone was a defendant in a civil suit right? And they were of the opinion that they should have arbitrated right. The the plaintiff should have brought the monetary dispute to the association of realtors, and I’m not suggesting they’re wrong. But what they did, what the defendant did is filed an ethics complaint alleging a violation of Article 17.
- But there was never an arbitration request filed, so the plaintiff had never been formally noticed that they had a duty to arbitrate that the grievance committee had, in fact, received an arbitration request and referred it on a mandatory basis. So those of you who might bump into something along those lines remind your members who are disgruntled. Don’t want to be
- in the court system that again, we don’t provide legal advice right?
- unless, of course, you are an attorney in our record right for a client but we would advise them to talk with their with their counsel, but from a process perspective
- there it would be premature to file an article 17. Allegation as a defendant in a civil suit. What 1st needs to happen is that the again Association needs to retain jurisdiction and classify the arbitration request as mandatory, and you don’t have to. When you look at that, a 1 form you know the request to arbitrate.
- It says there is due, and owing to me, or I retain. So the fact that you’re not looking for more money, right as an individual who invokes arbitration doesn’t mean that you can’t bring an arbitration request to the Association to confirm that you are able to retain those monies that are in your possession. So I wanted to make that distinction too.
- so we can only mandate mediation or arbitration.
- If there is a formal request filed, and the grievance committees referred the matter on a mandatory basis.
- And in section 49, if there is, if that occurs and someone, let’s say you’re an option. One board right in section 48. Of the manual. There are 3 different options to choose from
- depending on your State law. Some of you don’t have the option, 3 in your state and that option 3. In section 48 of the manual talks about your ability to go forward and hold a hearing and issue a valid award, even in the absence of a response and agreement to arbitrate, and even in the absence of the respondent attending
- of the hearing. So there are 3 options. But if you’re an option, one or option, 2 board, and there’s a refusal to arbitrate or mediate, for that matter. In Section 49 of the Manual again, I’m on page 150. That’s on page 1 51
- that would jump directly to the board of directors, the board of directors, or some panel thereof would make the determination as to whether or not Article 17 has been violated. If there, in fact, has been
- a refusal to mediate in those associations that have mandated mediation or to arbitrate. So that’s kind of a high level overview of a few things that I’ve been seeing and wanted to share with you any questions on any of those issues before we open it up to other
- other individuals. Questions, comments, concerns.
- Oh, hey, Jay, go ahead!
Jay Knowles12:37
Hey, Diane, should I have this manual.
Diane Mosley12:41
You know. I think I think it. They’re in. They’re available I think they started fulfilling or
- any orders. I just talked to Dylan Poe. He manages our store, and he said that they, our warehouse, had started filling orders as of last week. So they’re in. I think it’s a wonderful
- resource. You know, it’s online. But I find a hard copy so much easier to work with. And maybe it’s because I’m old school. But I it’s such a big electronic file, and certainly you can print it. But I don’t know. We probably sell it for like 30 bucks, and it’s just so much easier for me to flip through the manual, to find, you know, issues to, to
- to help people in the field, understand how, how, how we’re going to move forward on any particular.
Jay Knowles13:39
But where do I order this.
Diane Mosley13:41
You could go to any our realtor store, Nick, can you maybe get a link?
- Can you maybe find a link while we’re on and nickel see if he can actually plunk it in.
Jay Knowles13:53
Thank you.
Diane Mosley13:54
Yeah, of course. Of course.
- Thank you for all you do for the Realtor Association. We we staffers can’t do it without the realtors, and I know that we’ve got a fair amount of attorneys that pop in here as well. We lean on them fairly strong as well
- together.
- We make the best choices. I think
- we’re able to fix almost any mishap for sure.
- So anything! Oh, there you go! Thank you. Oh, thanks, Tracy. Tracy’s found it. Thank you. You can order piecemeal. Or there’s a bundle, typically that is also available that includes
- a pamphlet.
- professionalism and real estate practice and the code of ethics and arbitration manual, at least historically, Dylan Poe is the individual who handles our realtor store
- anything
- else. With respect to those issues that I covered, that you want to address, and if not, then maybe we can just open it up to any other issues that you wound up last year with, or have reared their ugly heads here in the 1st month of the year. I can’t believe it’s the end of January already.
- I know.
- Go ahead. You can just come right off. Mute.
- or you can drop something in the chat, whichever is easiest
- quiet group today.
- Yeah, it is a quiet group.
- Well, you’re gifted back 45 min right? If there isn’t anything else that is top of mind, I won’t keep you.
- Nick. Do you have anything that you want to share.
Nick Blair16:14
no, I don’t think so. I think I think the next couple of days we’re gonna put out a reminder
- for anyone who’s on. I mean, I don’t know if this is gonna apply to anyone on this call, but we’ll put out a reminder either by the end of the week or beginning of next week for associations and Mls to certify the documents. So if you are one of those individuals who does that for your organization. Just remember that those are due by March first, st but otherwise I don’t have anything.
Diane Mosley16:43
Yeah, thanks, Nick, for doing the heavy lifting on that and getting that. All the information that associations need up online in a timely manner.
Debbie Strange16:52
Diane.
Diane Mosley16:53
Oh, wait! Debbie, how are you today?
Debbie Strange16:56
Fine. Sorry I couldn’t find the raise hand thing, since we have few minutes. A lot of us did not get to make the one at the end of December.
- Was there any
- one or 2 points that is just crucial? If we have got to review your videos from it, or your
- tape from it.
Diane Mosley17:14
Would be helpful.
Debbie Strange17:15
Beautiful.
Diane Mosley17:15
That was an open yeah, that was an open session. Yeah, every 3.rd We usually do an open where I don’t share anything. And do more listening and allowing the group right to, you know, bounce things off each other. So there was nothing that I shared in December. But we? We filled the full hour with
- you know different questions. One of them was, what kind of recording devices do we use? You know things along those lines. I think we have that recording up because it was a month ago. I don’t recall what we talked about specifically. If anybody else. Yeah, for sure. All right, Debbie.
- All right. Well, Happy New Year, everyone stay warm. I know it’s been a little bit cold warmer here this week in the forties, which is really unusual for the Midwest, but we are making up for it because Monday and Tuesday we were below 0. So, just with the just with Temp, not with the wind chilled, and I know that we’ve had some crazy weather across the country as well. So stay safe. Stay well, and we’ll see you next month.
- All right, bye, everybody, and thanks Nick quick! Second.
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