Real estate agents (licensees) are required to follow all state and federal laws and regulations that govern real estate and our industry. As an organization with voluntary membership, GSCBOR and REALTOR® associations do not regulate real estate licenses. Administration and enforcement of New Jersey’s real estate licensing law is done by the New Jersey Real Estate Commission.
Real estate agents who are REALTORS® additionally agree to subscribe and follow the National Association of REALTORS® Code of Ethics. In subscribing to the Code of Ethics, Realtors® pledge to act in an honest and ethical manner with consumers, the public, and their fellow Realtors®.
REALTORS® also consent to arbitration as a condition of membership, and/or MLS subscription, under the rules and regulations of the local board. Arbitration is a binding agreement delivered by a local Board, arising from disputes in business, often regarding monetary values.
At GSCBOR, our Professional Standards Committee oversees both Ethics Violations and Arbitration Requests, with the Board’s Executive Director serving as secretary to the committee.
In the course of conducting business, disputes and disagreements may arise between REALTOR® members, or between consumers and a REALTOR® member.
Many difficulties between REALTORS® result from misunderstanding, miscommunication, or lack of adequate communication. All REALORS® should strive to follow the Pathways to Professionalism, guidelines of professionalism and courtesies, to ensure respect to all and reduce conflict.
Concerns or disputes should first be brought to the attention of the employing broker of an agent or REALTOR®, who is responsible for supervising the agents conducting business on behalf of their firm. Employing Broker information can be found in the NJ Real Estate License Database, linked below.
Open, constructive discussion often resolves questions or differences, eliminating the need for further action.
Concerns about a licensee or brokerage that potentially violate license laws, rules, or regulations should be directed to the NJ Real Estate Commission. REALTOR® associations enforce the Code of Ethics, and not legal concerns.
Subscribers to Bright Multiple Listing Service (MLS), agree to follow the MLS Rules & Regulations. Concerns specific to those rules should be directed to BrightMLS.
Concerns have the potential to cover multiple areas of professional conduct – a specific concern may both be both a legal and ethical issue..
Should the above steps have been explored, or do not apply, then options regarding violations of the Code of Ethics, or dispute resolution via Arbitration may apply.
The information listed below will give you an insight on filing an ethics complaint, as well as a FAQ section. To access further information from the National Association of REALTORS® regarding ethics, CLICK HERE.
An ethics complaint is filed when a REALTOR® is believed to have violated the Code of Ethics established by the National Association of REALTORS®.
The National Association of Realtors® Code of Ethics was adopted in 1913 and was one of the first codifications of ethical duties adopted by any business group. In subscribing to the Code of Ethics, Realtors® pledge to act in an honest and ethical manner with consumers, the public, and their fellow Realtors®. The Code ensures consumers are served by requiring Realtors® to cooperate in furthering clients’ best interests.
As a condition of membership into the Gloucester Salem Counties Board of REALTORS®, the real estate licensee agrees to conduct their business according to the National Association of REALTORS® Code of Ethics. The 17 articles of the Code represent a promise of performance and professionalism by all who become REALTORS®. As a result, the term REALTOR® has come to signify competency, fairness and high integrity.
For an ethics complaint to be processed, a formal complaint must be filed using the Ethics Complaint form. As you complete the form, please refer to the Code of Ethics of the National Association of REALTORS® to determine which Article(s) you believe have been violated. Your complaint must be submitted in writing with any supporting documentation or chronological summary of the events that occurred. Once the Complaint, the #E-l form, and supporting document is complete, submit it to the Gloucester Salem Board of REALTORS®.
Once proper forms and paperwork are received from the complainant by GSCBOR, the case is sent to the Grievance Committee for review. Based on a certain set of guidelines they must follow, the committee’s responsibility is to review the case and determine if the case should be referred to the Professional Standards Committee for an Ethics Hearing or dismissed.
If the case is referred for a hearing, the GSCBOR Professional Standards Committee will request a reply from the named respondent(s). A hearing panel will be appointed to hear the complaint and determine if the Code of Ethics cited has been violated. If the panel determines there has been a violation, they will take disciplinary action. Disciplinary sanctions that can be imposed are strictly limited to those forms authorized in the guidelines of the NAR Code of Ethics and Arbitration Manual. (We cannot suspend or terminate an agent’s Real Estate License.)
This process usually takes about three months to go through the proper progression.
Yes. Ethics complaints must be filed within 180 days from the time you could have known there was a dispute.
No, filing an ethics complaint is free.
When a complaint is filed, it will be sent to the Grievance Committee for determination if the article you cited is in violation of the Code or not. If the Committee forwards the complaint on for an Ethics hearing, the respondent will be sent a copy of the complaint and a reply to the charges is then required.
Each Article of the Code of Ethics includes Standards of Practice explaining the types of behavior covered. You should name the Article, not the Standard of Practice, in your complaint.
Ethics complaints should be filed with the Board/Association where the responding party holds membership.
If ethics complaints go to a hearing, the process may take 3-4 months due to the time needed for responses, proper notification, and scheduling.
The information listed below will give you an insight on filing an arbitration request, as well as a FAQ section. To access further information from the National Association of REALTORS® regarding arbitration, CLICK HERE.
In the event of monetary disputes between REALTORS® arising out of their relationship as REALTORS®, the GSCBOR provides Arbitration to settle the dispute. The Arbitration process is a mandatory requirement of membership for REALTORS® of different firms.
A majority of Arbitration requests are to determine the procuring cause of a sale or lease. Although the process can also be used to determine the amount of a commission when there is no dispute over procuring cause. Procuring Cause is defined as the uninterrupted series of events that leads to a successful transaction. Many factors go into determinining procuring cause and it is important to understand that the decision does not hinge on just one factor. A Request and Agreement to Arbitrate, Form A-1, must be initiated by the principal broker of an office and must be filed within 180 days after the closing of the transaction, if any, or within 180 days after the facts constituting the matter could have been known in the exercise of reasonable diligence, whichever is later.
Your Request and Agreement to Arbitrate, Form A-1, needs be completed and signed by the principal broker, (sales agent may join in on complaint also). Complaint must be in writing with any supporting documentation or chronological summary of the events that occurred. The form, letter of complaint, supporting documents and a deposit in the amount of $500 payable to GSCBOR, must then be sent to the Board office.
When the Request and Agreement to Arbitrate is received by the GSCBOR, mediation is offered to both the complainant and respondent prior to it being reviewed by the Grievance Committee.
What is Mediation? Mediation is a form of facilitated negotiation in which an impartial third party attempts to help disputing parties attain a mutually satisfactory solution to their problems. Participation in mediation is strictly voluntary on the part of both the complainant and respondent. Should either party decline the mediation process, the case is sent to the Grievance Committee for a review. This committee’s responsibility is to review the case and determine if the case should be referred to the Professional Standards Committee for a hearing or dismissed.
If the case is referred to the Professional Standards for an arbitration hearing, the respondent is required to respond to the request within 15 days. They must also post a $500 deposit. A Professional Standards hearing panel will be appointed to hear the Arbitration complaint. Both parties will have ample opportunity to present their case to the panel. Arbitration decision is binding. (The prevailing party to the arbitration will have their deposit returned.)
Arbitration requests can be submitted to the GSCBOR office.
Yes. Both parties submit a $500 filing fee deposit. Should a hearing occur, the prevailing party’s fee is returned, and the remainder is used to cover the cost of the hearing. If the case does not go to hearing, filing fees are returned, minus an administrative fee from both parties.
Ethics complaints are filed about behavior; arbitration is requested when there is a commission or monetary dispute.
Yes. Members agree to abide by the Code of Ethics, which includes binding arbitration.
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