Minnesota Commercial Association of Real Estate (MNCAR)
Dispute Resolution Policy
In the event of commission disputes between MNCAR members associated with different firms, or alleged ethics violations by a MNCAR member brought by other MNCAR members or third parties involved in a transaction with a MNCAR member, members agree to act in accordance with the dispute resolution and ethics policies and procedures outlined in the MNCAR Bylaws and MNCAR “Dispute Resolution and Ethics Policy.” In the event of a commission dispute, all MNCAR members agree to a hearing as outlined herein, rather than to litigate the matter in public courts. MNCAR partners with the Better Business Bureau of Minnesota and North Dakota (BBB) to handle dispute resolution proceedings.
Disputes will be handled in the following manner:
Ethics Reviews – heard and resolved by panel of MNCAR members trained in dispute resolution Ethics Reviews
Alleged ethics violations can be filed by both MNCAR members and the public. Allegations of a violation will be evaluated by the Board of Directors, and if found to be credible, will be heard by a hearing panel made up of disinterested MNCAR Members. Such hearing panel will have authority to determine the form and conduct of the hearing and, at the conclusion of the hearing, recommend either no disciplinary action be taken or that the Member be disciplined by censorship, fines, suspensions and/or expulsion from membership. Within a reasonable time after the conclusion of the hearing, the panel will submit it recommendation to the Board of Directors for approval. The Board of Directors may accept or modify the recommendation and will promptly notify the Member of the decision.
Commission Disputes – heard and resolved by the BBB through mediation / arbitration with input from a panel of MNCAR members trained in dispute resolution MNCAR members are required to handle commission disputes using the following process.
Mediation. MNCAR membersagree to submit any commission dispute, with the exception of disputes alleging criminal or statutory violations, to mediation in accordance with the Rules of the BBB. In the event of a controversy or dispute between the parties, the parties agree to exercise diligence in the pursuit of a fair and equitable resolution within fifteen (15) days of the date the controversy with a BBB volunteer mediator. The mediator will meet with the parties and help facilitate a settlement agreement. Should the parties be unable to resolve the dispute within mediation the parties have the option to participate in binding arbitration. Further information can be obtained by calling the BBB Community Mediation Center at 651-695-2427 or 651-695-2406.
Arbitration. MNCAR members agree to submit any commission dispute not settled within mediation and arising under these bylaws with the exception of disputes alleging criminal or statutory violations, to binding arbitration in accordance with the Rules of the BBB. A volunteer BBB arbitrator will render a decision that the arbitrator considers to be fair; in doing so; the arbitrator will seek guidance and clarification from the Committee of Commercial Real Estate Practitioners. The Committee shall be granted attendance at any/all BBB arbitration hearings. The arbitrator’s decision will be final and binding on parties and is not required to apply legal principles.
MNCAR Member will be responsible for covering all administrative fees at a cost of $250.00 per arbitration, a fee that may be changed by MNCAR at any time. Further information about BBB arbitration may be obtained by calling the BBB Community Mediation Center at 651-695-2427 or 651-695-2406. This agreement to arbitrate effects important legal rights, and you should check with your own attorney if you have questions about those rights. Neither party will be able to go to court for disputes that must be arbitrated.
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