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Professionsal Standards - Frequently Asked Questions
How do I go about filing a complaint against a real estate agent?What is a material fact and must it be disclosed?
I have a commission dispute with another RealtorŪ. Do I have to take them to court or can the association help?
Does the association offer mediation services?
Am I required to put my status as a RealtorŪ in my ads?
I mailed flyers describing my services to an entire neighborhood. As it turned out, several of the residents had their homes listed with other realty firms. Am I in violation of Article 16?
How do I go about filing a complaint against a real estate agent?
If the agent in question is a RealtorŪ, you may file an ethics complaint with the Charlotte Regional RealtorŪ Association. Call Debra McIver, Professional Standards Administrator, at 704-940-3113 for details.
Not all real estate agents are RealtorsŪ. To obtain a license, you must take the classes required by the N.C. Real Estate Commission in Raleigh. Once you pass the exam, you are licensed by that commission and must follow their rules, regulations and licensing law.
After an individual receives a license, if they wish to use the RealtorŪ designation, they must apply for membership in a local RealtorŪ Association. Once approved for membership, they must abide by a strict professional Code of Ethics.
Anyone may file an ethics complaint. The association's Grievance Committee meets monthly to review any complaints. They operate similar to a grand jury. If they determine that a hearing is warranted, they forward the case to the Professional Standards Committee. A hearing panel is selected from the Professional Standards Committee to hear the matter. If the RealtorŪ in question is found to be in violation of the Code of Ethics, he or she will be reprimanded. Any RealtorŪ found to be in violation of the Code pays an automatic $500 administrative processing fee. This is in addition to any other sanctions that might be imposed. Other sanctions include but are not limited to, required educational courses at the offender's expense, additional fines of up to $5000, suspension or expulsion from the RealtorŪ Association and the Carolina Multiple Listing Services, Inc.
If the agent in question is not a RealtorŪ you may contact the N.C. Real Estate Commission (919-875-3700) to inquire about their complaint procedures.
What is a material fact and must it be disclosed?
Under the licensing law, a listing agent is required to disclose material facts. A fact is considered material if it relates to a defect in the property or the seller's ability to fulfill his promises under the contract.
I have a commission dispute with another RealtorŪ. Do I have to take them to court or can the association help?
Article 17 of the RealtorŪ Code of Ethics requires that RealtorsŪ arbitrate through the RealtorŪ association rather than litigate. You may file an arbitration complaint with your local association. There are circumstances where arbitration is mandatory for the RealtorŪ and there are instances when it is voluntary on the part of the RealtorŪ. You would need to call the Professional Standards Administrator at the RealtorŪ association for details.
The Charlotte Regional RealtorŪ Association requires a $250 non-refundable arbitration filing fee from both parties to the complaint. Initially, the complaint goes to the association's Grievance Committee for review. This committee determines whether or not the matter is arbitrable. If it is, they forward the complaint to the Professional Standards Committee for a hearing to be conducted. Both parties to the complaint go before a hearing panel selected from the Professional Standards Committee to present their case. The parties may bring legal counsel and/or witnesses. The hearing panel decides about the award/commission.
Does the association offer mediation services?
Yes. As an alternative to arbitration CRRA offers mediation as a service to its members. CRRA has knowledgeable mediation officers who will meet with both parties to the business dispute and try to help them reach a mutual resolution. If a resolution can be reached during the mediation session, it is reduced to writing. If either party does not comply with the written resolution, the other party may take that document to court to have it judicially enforced. If no resolution is reached, the complaining party may then file for arbitration.
Am I required to put my status as a RealtorŪ and my firm name in my ads?
Yes. Article 12 of the RealtorsŪ Code of Ethics requires that "RealtorsŪ shall be careful at all times to present a true picture in their advertising and representations to the public. RealtorsŪ shall also ensure that their professional status (e.g. broker, appraiser, property manager, etc.) or status as a RealtorŪ is clearly identifiable in any such advertising." We highly recommend using the RealtorŪ trademark. (Make sure to use a comma to separate "RealtorŪ" or "RealtorsŪ from any other name.) Article 12 o Standard of Practice 12-5 states that RealtorsŪ shall not advertise nor permit any person employed by or affiliated with them to advertise listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that RealtorŪ's firm in a reasonable and readily apparent manner. Please go to realtor.org and search on Membership Marks for more information about the logo and punctuation.
I mailed flyers describing my services to an entire neighborhood. As it turned out, several of the residents had their homes listed with other realty firms. Am I in violation of Article 16?
No. Article 16 does state that RealtorsŪ shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that RealtorsŪ have with clients. However, Article 16 does not prohibit RealtorsŪ from making general announcements (a general telephone canvass, general mailing or distribution addressed to all prospective clients in a given geographical area) describing their services even though some recipients may have entered into an agency agreement with another RealtorŪ. If you are physically placing flyers at homes, and you see a home with a for sale sign, we would recommend skipping that particular home.
For more information about the Code of Ethics, call Debra McIver, CRRA Professional Standards Administrator at 704-940-3113, or email her
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| REALTORŪ -- A Registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORSŪ and subscribes to its strict Code of Ethics. |
