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The Bases for Arbitration in the REALTOR  System. Article 17 of the Code of Ethics Arbitration of disputes is limited to the conditions of Article 17. Conditions of Article 17. Contractual disputes and specific non-contractual disputes defined in Standard of Practice 17-4;
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The Bases for Arbitration in the REALTOR System • Article 17 of the Code of Ethics • Arbitration of disputes is limited to the conditions of Article 17.
Conditions of Article 17 • Contractual disputes and specific non-contractual disputes defined in Standard of Practice 17-4; • Between REALTORS associated with different firms; • Arising out of their relationship as REALTORS …
Contractual v. Non-contractual • Contractual Disputes, e.g. cooperating broker v. listing broker • Non-contractual Disputes: Standard of Practice 17-4 • 17-4(1) – 17-4(3): Cooperating broker v. cooperating broker – no listing broker need be named in the arbitration request. • 17-4(4): Listing broker v. listing broker under open listings when the seller agrees to participate and be bound by the decision.
“Arbitrability” • Determined by Grievance Committee. • Article 17 is basis for Grievance Committee’s decision. • Section 42 of the Code of Ethics and Arbitration Manual (CEAM) sets out Grievance Committee procedures in a request for arbitration. • Appendix I to Part Ten of the CEAM discusses “Arbitrable Issues.”
The Uniform Arbitration Act • Adopted in some form in many states. • “Uniform,” but different from state to state (e.g. subpoenas). • Modification of forms in CEAM by state legal counsel.
Procuring Cause • Legal Concept v. REALTOR System • Listing broker v. owner • Broker v. Broker
Procuring Cause • General Legal Definition: Black’s Law Dictionary, Fifth Edition: • “The proximate cause; the cause originating a series of events which, without a break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with “efficient cause.”
"Suggested Factors" • Appendix II to Part Ten of the CEAM: “Arbitration Guidelines (Suggested Factors for Consideration by a Hearing Panel in Arbitration)” • Factor #1: No predetermined rule of entitlement • Factor #2: Arbitrability and appropriate parties • Factor #3: Relevance and admissibility • Factor #4: Communication and contact – abandonment and estrangement • Factor #5: Conformity with state law • Factor #6: Consideration of the entire course of events (“The Questions”)
Procuring Cause Concepts • Uninterrupted series of events • Abandonment • Estrangement
Common Misconceptions • The Threshold Rule • The Contract Rule • The Agency Rule
A Framework for Analysis • Nature and Status of the Transaction • Nature, Status and Terms of the Listing Agreement • Roles and Relationships of the Parties • Initial Contact with the Purchaser • Conduct of the Brokers • Continuity and Breaks in Continuity (Abandonment & Estrangement) • Conduct of the Buyer • Conduct of the Seller
