Arbitration Program

Arbitration

All PWR 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 PWR, which should include a detailed summary of the events and pay a $500 filing fee. We then begin the process and contact the Respondent for their response. A hearing will be scheduled and three panel members from our list of 80 qualified Professional Standards Committee members (all volunteers) will be selected to hear your case and reach a conclusion. Before beginning any arbitration proceedings, we first strongly encourage members to settle their dispute through voluntary mediation, also available through our association.

Commission Disputes ($500 Filing Fee)

Member-to-member disputes

Both the Code of Ethics and Arbitration Manual require members to arbitrate certain disputes with certain members and clients. For example, if two members are in a dispute over a commission issue or if there is a dispute between a listing agent and the seller, PWR can process these cases. The filing fee for the complainant is $500. This is considered a filing fee and 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.

Requirements

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 facts giving rise to the dispute occurred. If you prefer to mediate the dispute (and all parties agree), the cost for mediation between two members is $250

Procedure

Once a complaint is filed, the association will contact the other parties and request their response. All parties will come to the association for a hearing to present and prove their case to the panel (the respondent also has the right to invoke arbitration by counterclaiming). After the hearing, the parties are dismissed. The panel will deliberate and issue an arbitration award which is then mailed to both parties.

Arbitration Forms


Questions?

Call the PWR Professional Standards Department at 714.245.5500