Most real estate transactions proceed peacefully; minor disputes between the parties usually can be worked out with a little negotiation and compromise. However, consumers and REALTORS® sometimes find themselves confronted with disputes that they are unable to resolve by themselves.
What is Arbitration?
Arbitration is the term used to describe a form of dispute resolution that occurs outside of the court system. All CVAR members are required to settle their monetary disputes (usually a commission issue) through the use of our Arbitration Program. Members submit an arbitration request to CVAR, which includes a detailed summary of the events and a $300 filing fee. This filing fee is non-refundable but you may submit your costs to the panel and they will take your filing fee into consideration when determining the award.
You may use an attorney for arbitration but the association must be notified at least 15 days prior to the hearing. All brokers must be named in the arbitration since commissions are paid to the broker.
Once a complaint is filed, we begin the process and contact the respondent for their response. A hearing will be scheduled and three panel members from our list of qualified Professional Standards Committee member’s (all volunteers) will be selected to hear your case and reach a conclusion.
An arbitration must be filed within 180 days from close of escrow. However, if the transaction has not closed (and never will), then it is 180 days from the time the known facts of the dispute occurred.
As an alternative to arbitration, the Association has available mediation. Mediation is a dispute resolution process whereby a mediator works with you and the other parties to facilitate a mutually acceptable resolution of your dispute. In comparison to arbitration, mediation is usually less adversarial and less formal and the parties are more directly involved in the decision making process to resolve their dispute. As a general policy, the Association promotes mediation and strongly encourages you to consider using mediation.
While the Association promotes mediation, please be advised of the following. If you are the complainant in the dispute, you still need to file an arbitration complaint with the Association to preserve your right to arbitration. Also, mediation is a voluntary process and a mediation conference can only be scheduled for those parties that agree to mediation. If any party to your dispute does not agree to mediation, arbitration will be necessary to resolve the dispute as it pertains to you and those parties. Finally, if you are unable to reach a mutually acceptable resolution of the dispute through mediation, an arbitration hearing will have to be scheduled. To request a mediation complete the Request for Mediation Form.
The mediation request from should be forwarded to:
Citrus Valley Association of REALTORS®
Attention: Professional Standards Administrator
504 E. Route 66
Glendora, CA 91740