Why hire a REALTOR^® over a non-REALTOR^® licensee? One of the most common answers to this question is because REALTORS^® are held to a higher standard by NAR’s Code of Ethics. Code of Ethics enforcement is a cornerstone of the REALTOR^® brand, and REALTORS^® should be held accountable when they violate the Code of Ethics.  

Yet, there are several ways to hold REALTORS^® accountable who violate or run afoul of their ethical obligations, and not all ways may require a formal complaint, hearing, and discipline. One alternative dispute resolution process is the Ombudsman program.  

An ombudsman is a neutral third-party who can assist parties to a dispute with reaching a resolution. An ombudsman facilitates communication and does not adjudicate a dispute. An ombudsman does not determine whether an ethics violation has occurred or who is entitled to what amount of money. The ombudsman works to anticipate, identify and resolve misunderstandings and disagreements.   

The key role of the ombudsman is to help the parties reach their own resolution by giving each side an opportunity to be heard and helping to reframe heated positions. A potential complainant and respondent can save a lot of time and energy resolving a dispute on their own rather than going through the entire Professional Standards process. Additionally, when the parties choose their own resolution, they are not bound by the limited sanctions available to a hearing panel. Perhaps an apology was all a complainant needed, which would not have been an option for a hearing panel.  

Virginia REALTORS^® does not require complainants to utilize an ombudsman, but there is no downside or harm in trying to settle a case with an ombudsman. Even if the case does not settle through the ombudsman, the complainant can still pursue the case through the formal process. The Ombudsman process is confidential, and if the parties cannot reach a resolution, the ombudsman cannot be called as a witness in an ethics hearing. Additionally, if parties utilize an ombudsman, the filing deadline for an ethics complaint is paused while the Ombudsman process is ongoing.  

Many ethics complaints arise from miscommunication or a misunderstanding between the parties, and these types of disputes can often be resolved with the assistance of an ombudsman. Keep this alternative dispute resolution in mind if you are ever considering or facing an ethics complaint.  

If you have questions about this article, please contact our team of attorneys via the Virginia REALTORS^® Legal Hotline.