CODE OF ETHICS AND 20 ARBITRATION MANUAL 21 - …

1 CODE OF ETHICS ANDARBITRATION MANUAL2021 Code of ETHICS andArbitration ManualA MANUAL for use by Member Boards of the National Association to ensure due process in the conduct of hearings to enforce the Code of ETHICS and in the ARBITRATION of business disputes arising out of the real estate business. Professional standards procedures of Member Boards must reflect substantively the approved due process policies and procedures of this MANUAL in order to ensure Board entitlement to coverage by the Professional Liability Insurance Policy of the National Association in litigation involving the Board in connection with Board enforcement of the Code of ETHICS , provided that such policies and procedures are consistent with applicable state ease of reference, all amended provisions where content has changed are shaded to highlight : All new and amended Case Interpretations become effective upon approval by the National Association s Professional Standards Committee and publication on There were no new or amended Case Interpretations approved by the Professional Standards Committee in associatioN of RealtoRs 430 North Michigan AvenueC h icago, I l l i nois 6 0 611- 4 087 RealtoR is a registered collective membership mark whichmay be used only by real estate professionals who are members of theNatioNal associatioN of RealtoRs and subscribe to its strict Code of ETHICS .

2 2021 NatioNal associatioN of RealtoRs All Rights ReservedThis MANUAL is dedicated to the memory ofChesley J. ( Chet ) Smith(19 21 2 0 01)Chet Smith served America in war and peace for nearly four decades in the Army Air Corps and the Air Force, and he served RealtoRs for nearly a quarter century at the local, state, and national levels. His dedication to the RealtoR organization was exceeded only by his dedication to his family, his faith in God, and his commitment to the Code of of Contents Code of ETHICS and ARBITRATION MANUAL Areas of the MANUAL Requiring Board/Association Action .. i The RealtoR s Code of ETHICS A Gift of Vision .. v Pathways to Professionalism .. vii Preface .. 1 Code of ETHICS and Standards of Practice .. 5 15 ETHICS .

3 19 Statements of Professional Standards Policy Applicable to ETHICS Proceedings .. 21 Part One General Provisions Relating to ETHICS .. 29 Section 1 Definitions Relating to ETHICS .. 29 Section 2 Qualification for Tribunal .. 30 Section 3 Duty to Give Evidence .. 31 Section 4 Right of Counsel to Appear .. 31 Section 5 Witnesses .. 32 Section 6 Conduct of Hearing .. 32 Section 7 Notices .. 32 Section 8 Interpretations of Bylaws .. 33 Section 9 Waiver .. 33 Section 10 Communication and Clerical .. 33 Section 11 Attempt to Influence Tribunal .. 33 Part Two Membership Duties and Their Enforcement .. 35 Section 12 Duties of Membership .. 35 Section 13 Power to Take Disciplinary Action .. 35 Section 14 Nature of Discipline .. 36 Section 15 Selection and Appointment of the Grievance Committee.

4 37 Section 16 Selection and Appointment of the Professional Standards Committee .. 37 Part Three The Grievance Committee .. 39 Section 17 Authority .. 39 Section 18 Function .. 39 Section 19 Review of ETHICS Complaint .. 39 Part Four The ETHICS Hearing .. 43 Section 20 Initiating an ETHICS Hearing .. 43 Section 21 ETHICS Hearing .. 46 Section 22 Decision of Hearing Panel .. 48 Section 23 Action of the Board of 48 Section 24 Initial Action by Directors .. 51 Section 25 Preliminary Judicial Determination Prior to Imposition of Discipline .. 51 Appendix I to Part Four Role of the Board of Directors in Reviewing and Ratifying ETHICS Hearing Panel Decisions .. 52 Appendix II to Part Four Appropriate Interpretation of Pertinent Facts as Used in Article 2 of the Code of ETHICS .

5 53 Appendix III to Part Four Responsibility of Member Boards with Respect to Article 10 of the Code of ETHICS .. 54 Appendix IV to Part Four Rationale of Declaratory Relief Procedure .. 56 Appendix V to Part Four ETHICS Hearing Checklist with Administrative Time Frames .. 57 Appendix VI to Part Four Cooperative Enforcement of the Code of ETHICS .. 63 Appendix VII to Part Four Sanctioning Guidelines .. 65 Appendix VIII to Part Four procedures for Consideration of Alleged Violations of Article IV, Section 2, Bylaws, NatioNal associatioN of RealtoRs .. 70 Appendix IX to Part Four Presenting and Negotiating Multiple Offers .. 71 Appendix X to Part Four Before You File an ETHICS Complaint .. 73 Appendix XI to Part Four ETHICS Mediation.

6 76 ETHICS Mediation Resolution Appendix XII to Part Four Appropriate Interpretation of Standard of Practice 10-5 and Statement of Professional Standards Policy 29 ..79 Part Five Conduct of an ETHICS Hearing .. 81 Outline of Procedure for Conduct of an ETHICS Hearing .. 81 Outline of Procedure for an ETHICS Hearing Involving a Complaint and Counter-Complaint .. 83 Chairperson s Procedural Guide: Conduct of an ETHICS Hearing .. 85 Chairperson s Procedural Guide: Conduct of an Appeal Hearing ( ETHICS ) .. 88 Part Six Specimen Forms for ETHICS .. 91 Form #E-1 ETHICS Complaint .. 92 Form #E-2 Notice to Respondent .. 93 Form #E-3 Reply .. 94 Form #E-4 Grievance Committee Request for Information ( ETHICS Complaint).. 95 Form #E-5 Response to Grievance Committee Request for Information.

7 96 Form # Grievance Committee Report Form .. 97 Form #E-6 Notice of Right to Challenge Tribunal Members .. 98 Form #E-7 Challenge to Qualification by Parties to ETHICS Proceeding .. 99 Form #E-8 Official Notice of Hearing .. 100 Form #E-9 Outline of Procedure for ETHICS Hearing .. 101 Form #E-9a Outline of Procedure for ETHICS Hearing with Complaint and Counter-Complaint .. 102 Form #E-10 Certificate of Qualification .. 104 Form #E-11 Decision of ETHICS Hearing Panel .. 105 Form #E-11a Sample Findings of Fact .. 107 Form #E-12 Action of the Board of Directors .. 108 Form #E-13 Request for Appeal .. 110 Form #E-14 Official Notice of Appeal Hearing .. 111 Form #E-15 Checklist of Professional Standards Concerns.

8 113 Form #E-16 Seating Arrangements for Hearings .. 115 Form #E-17 ETHICS Activity Report .. 116 Form #E-18 Outline of Content of Petition for Declaratory Relief .. 117 Form #E-19 Sample Agreement to Establish Multi-Board (or Regional) Professional Standards Enforcement procedures .. 118 Form #E-20 Notice to Respondent ( ETHICS ) and Optional Waiver of Right to Hearing .. 121 Form #E-21 Sample Letter of Reprimand/Warning .. 123 Form #E-22 Appeal of Grievance Committee Dismissal of ETHICS Complaint .. 124 Form #E-23 Action of the Appeal Hearing Tribunal ( ETHICS Complaint).. 125 ARBITRATION .. 127 Statements of Professional Standards Policy Applicable to ARBITRATION Proceedings .. 129 Part Seven General Provisions Relating to ARBITRATION .. 137 Section 26 Definitions Relating to ARBITRATION .

9 137 Section 27 Qualification for Tribunal .. 137 Section 28 Duty to Give Evidence .. 138 Section 29 Right of Counsel to Appear .. 139 Section 30 Witnesses .. 139 Section 31 Conduct of Hearing .. 139 Section 32 Notices .. 140 Section 33 Interpretations of Bylaws .. 140 Section 34 Waiver .. 140 Section 35 Communication and Clerical .. 140 Section 36 Attempt to Influence Tribunal .. 140 Part Eight Membership Duties and Enforcement .. 141 Section 37 Duties of Membership .. 141 Section 38 Selection and Appointment of the Grievance Committee .. 141 Section 39 Selection and Appointment of the Professional Standards Committee .. 141 Part Nine The Grievance Committee .. 143 Section 40 Authority .. 143 Section 41 Function .. 143 Section 42 Grievance Committee s Review and Analysis of a Request for ARBITRATION .

10 143 Part Ten ARBITRATION of Disputes .. 145 Section 43 Arbitrable Issues .. 145 Section 44 Duty and Privilege to Arbitrate .. 146 Section 45 Board s Right to Decline ARBITRATION .. 147 Section 46 Duty to Arbitrate Before State Association .. 148 Section 47 Manner of Invoking ARBITRATION .. 148 Section 48 Submission to ARBITRATION .. 150 Section 49 Initial Action by Directors .. 151 Section 50 Preliminary Judicial Determination Prior to Imposition of Discipline .. 151 Section 51 ARBITRATION Hearing .. 151 Section 52 Settlement .. 152 Section 53 The Award .. 152 Section 54 Costs of ARBITRATION .. 153 Section 55 Request for Procedural Review .. 153 Section 56 Enforcement .. 154 Appendix I to Part Ten Arbitrable Issues .. 155 Appendix II to Part Ten ARBITRATION Guidelines.