There is no easy way to resolve disputes that arise as to entitlement to a portion of a commission. Each matter requires a careful review and evaluation of the facts. The following points might be helpful if you should get involved in such a dispute.

Write down the facts and gather documentation early:

When a dispute arises that might lead to an arbitration, the best way to proceed is for the agent involved to begin to collect all the facts, including any documentation available, and write out what took place, what was said, and the dates involved. This collection of facts phase should be brought together as soon as possible while points are still fresh in the minds of those involved.

Talk to the member you have a dispute with:

If you are a salesperson, inform your broker or manager immediately. The broker or manager should contact the other salesperson’s broker or manager as soon as possible after it is known there is a dispute. Don’t wait until after the closing takes place for fear of jeopardizing the sale. It is the fairest thing to all concerned to bring forth the facts relating to a dispute so that those involved can try to resolve it. Ask management and the salesperson of the other brokerage firm to have a meeting with you so that facts can be exchanged in an effort to resolve the matter.

Do your homework:

Review as much as you can about procuring cause if that is at the center of a dispute. You should keep in mind that “absolute answers” are not always possible. Each case involves a unique set of circumstances and series of events that need to be considered.

Keep an open mind until you know the facts:

Don’t take a rigid position on the matter until you know the facts from both sides. Sometimes management practices blind allegiance when the facts simply do not support their salesperson’s position. Sometimes a buyer will try to use the agents for their own personal gain. Sometimes a salesperson clearly tries to take over without regard for what the other agent has done. If any of these or similar factors are involved, it’s best to face the situation early and avoid the time and effort that goes into an arbitration. Sometimes a compromise is the best way to resolve a dispute. In some cases, the facts when known, do not fully support one side or the other. However, if you conclude that the facts support your claim and you cannot get the matter resolved to your satisfaction, then proceed to file with the Association an arbitration complaint.

Be brief and to the point, yet provide the facts you have:

If you submit a matter to arbitration, provide the facts to the arbitrators. To do this it would help if, as previously suggested, you have written out what took place. Be thorough and concise. From time to time the committee will receive a complaint or reply that is way too long for the issue involved. It’s as though the person submitting the matter thinks that if enough words are tossed around they’ll win simply by the weight of it all. That doesn’t work. The arbitrators want to know what the claim is and the points, and only the points, that support the claim. In the reply, the arbitrators want to know why the respondent does not agree with the claim and the points, and only the points, that support his or her position. On the other hand don’t say too little. Provide your story and whatever supporting documentation you have relative to the case you are presenting.

Consider mediation:

Mediation is a middle ground for members to consider. It is being used quite effectively by REALTORS^® throughout the nation.

Prepare carefully in advance of the hearing before the Arbitration Committee:

While arbitration is relatively informal, it requires preparation. The arbitrators receive a copy of the complaint and reply, including any documentation, and have read those items in advance of the hearing. When presenting your case, as a complainant or respondent, present your oral statements of fact that are pertinent to your claim or denial of the claim. You should also review your rights and responsibilities included in the Association’s Code of Ethics and Arbitration Manual found in the Yearbook.

In arbitration someone will win and someone will lose:

If your position does not prevail before the arbitrators, it is not because they misunderstood the facts as sometimes alleged by the loser. When you are involved in an arbitration you are responsible for presenting the facts you have before your peers, who practice and understand the real estate business just as you do. The facts supporting your complaint or reply, or lack of same, is what determines the outcome of an arbitration. It’s not because the arbitrators did not understand what went on, or because they did not like the people involved on one side of the matter. The individuals involved in an arbitration have a legitimate difference of opinion that is submitted to their peers for resolution. Once you present your case with the facts available to you, the arbitrators do the best they can in arriving at a decision. When you submit a matter to arbitration you should understand that there is a possibility that your position may not prevail.

The Association will provide due process:

The Minnesota Commercial Association of REALTORS^®, in offering arbitration, is committed to providing due process to members who find they need the service. Due process includes the procedures that are found in the Association’s manual which are followed before and at the arbitration hearing. The Association staff and the Arbitration Committee follow the procedures carefully in order to give both the complainant and respondent their rights. Sometimes members confuse due process with the outcome of an arbitration. In other words a member will use the administrative review right that they have, which is another way of saying due process, when in fact they didn’t like the decision of the Arbitration Committee. Requests for procedural review go to the Board of Directors or an executive group appointed for taking up such a request. The group that takes up the request cannot hear the arbitration again. The procedural review process is limited only to the points that are claimed to have deprived a party of due process.