Q: What do I do if a commission dispute has been filed against me?

A: If your brokerage is named in an Arbitration Request, you will be notified and will receive a copy of the commission claim.

The Request will be reviewed by a Grievance Review Panel whose job is to determine, among other things, if there is a properly arbitrable matter, whether the proper parties are named, and whether the request for arbitration is timely filed (filed within 180 days after closing or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence.)

If the Grievance Review Panel determines that the proper information was included in the arbitration request and it is timely filed, you will be asked to submit a written response to the arbitration request and be offered an opportunity to participate in mediation, which is a voluntary process.

If mediation is declined, the matter will be forwarded to an Arbitration Hearing Panel of the Professional Standards Committee for a determination on the matter.

If all parties agree to mediation, a Mediation Officer will be appointed by MNAR to work with all parties to overcome objectives and assist in finding a solution or settlement that all parties can agree upon. If settlement is reached, a Mediation Resolution Agreement, a legally binding agreement, will be drawn up and signed by the parties. If the parties are unable to reach a resolution, the matter will proceed to a hearing before an Arbitration Hearing Panel.

If the matter proceeds to a Hearing, you will be asked to attend a proceeding where you and your legal counsel (if any) will be given an opportunity to present testimony, evidence, and call witnesses. You and your counsel will also be given an opportunity to cross examine the complainant and their witnesses and respond to complainant’s cross-examination. The Hearing Panel may question the complainant, respondent, and any witnesses. The Arbitration Hearing Panel will weigh all factors and the entire course of events to make a determination on the matter.

The award of the Arbitration Hearing Panel, which will state the amount of the award, if any, will generally be mailed to all parties within five (5) days of the hearing. When served on the parties, the award is valid and binding. Decisions of Arbitration Hearing Panels may not be reviewed or appealed, however parties may request a procedural review of the arbitration hearing procedures based only upon alleged procedural deficiencies or other irregularities the party believes constitute a deprivation of due process on the part of Hearing Panel Member or others acting on behalf of the MNAR.

For more real estate questions and answers visit the Desktop Reference Guide!

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry. 


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