Professional Standards Programs

Ombudsman Program

Ombudsmen can help you understand if a possible violation has occurred and recommend ways to resolve the situation before it becomes a more formal process.

What is it?

The Ombudsman Program is a FREE voluntary way of discovering if a possible ethics or rules violation has occurred with other members or clients.

How does it work?

Ombudsmen do not advocate for any party or attempt to decide who is at fault. Instead, they assist all of the parties in understanding the issues and recommend options for resolving the situation before a more formal process is necessary.

What happens if the parties can’t agree?

If the parties can’t agree to the Ombudsman’s recommendation, they can proceed with a mediation or enforcement process with Bay East, California Department of Real Estate (DRE) or the court system.

Ombudsman Request Form

Request an Ombudsman by completing this form.

Review the National Association of REALTORS® Code of Ethics here.

Ethics Advocate Program

Ethics Advocates are trained Professional Standards REALTOR® members who can help you decide if a situation is a potential ethics or rules violation.

What are they?

Ethics Advocates are specially trained and very knowledgeable Professional Standards REALTOR® members that know the Code of Ethics and the MLS rules, and who will assist you in determining if the facts and circumstances of your situation would be a potential violation of one or more rules.

How does it work?

Whether you are the complainant or the respondent, your assigned Ethics Advocate will assist in the completion of the forms, the preparation of the evidence and exhibits to support your complaint, the filing of the complaint with the Association, and accompany you to the hearing if you wish.

Ethics Advocate Request Forms

Request an Ethics Advocate by completing this form.

Request an Ethics Advocate Communications Preferences form.

Request an Ethics Advocate Acceptance form.

Commission Disputes

Mediation

Mediation is the preferred method of commission dispute resolution of the National Association of REALTORS®.

During this process, a neutral mediator panel assists you in reaching a voluntary, negotiated agreement. Choosing this method promotes better relationships, reduces stress, lowers costs and decreases the time to reach a resolution.

Association mediators are REALTOR® members, specifically trained and experienced in dispute resolution through the mediation process for real estate related disputes, including but not limited to:

• Deposit disputes
• Contingencies not met
• Specific performance
• Non-disclosure issues
• Boundary disputes or any other issue subject to the “mediation clause” arising from the listing contract between a REALTOR® and seller, or from the purchase contract between buyers and sellers

Start the Mediation process by completing this Mediation Intake Form.

Arbitration

Arbitration is a settlement process in which a third party reviews the dispute and imposes a decision that is legally binding for all of the parties. Click here for a FAQ on C.A.R. Procuring Cause.

If you choose this method of resolution, these step by step instructions will start the Arbitration process.

Step 1 – Filing instructions

Write in the name(s) of the respondent (the person against whom the complaint is made). You MAY include the name of the Responsible Broker or Participant. Arbitration Complaint Form

(Note: If the respondent is from another Association, this qualifies as an Interboard Arbitration and would be handled by California Association of REALTORS®. Click here for more Interboard Arbitration info and filing instructions.)

Step 2 – Documents

Attach a typed statement of the facts and circumstances supporting the case, this will be marked “Exhibit 1”. You may attach supporting documents to the statement.

Step 3 – Filling instructions

Submit complaint form with payment (check or credit card accepted) to Bay East Association of REALTORS® by mail or email professionalstandards@bayeast.org.

Pricing Information

The following pricing sheet includes the fees and expenses for mediation and arbitration processes.

• REALTOR® to REALTOR® Mediation: $200
• REALTOR® to REALTOR® Arbitration: $700
• Buyer vs. Seller / Seller vs. Buyer – REALTOR®: $500

NOTE: Buyer and Seller Dispute Fees to be split between the parties evenly, i.e., Buyer pays $250, Seller pays $250.

Buyer/Seller Disputes

Bay East offers affordable ways for members and their clients to resolve real estate transaction disputes at any point during or after the transaction.

WHAT IS DISPUTE RESOLUTION?

Dispute resolution is a member service available to all members and their clients at special rates, to resolve disputes arising from the real estate transaction at any point during or after the transaction. Learn more about our Mediation Policy and Procedures here.

WHO CAN HELP?

Association mediators are REALTOR® members, specifically trained and experienced in dispute resolution through the mediation process for real estate related disputes, including but not limited to:

• Deposit disputes
• Contingencies not met
• Specific performance
• Non-disclosure issues
• Boundary disputes or
• Any other issue subject to the “mediation clause” arising from the listing contract between a REALTOR® and seller or from the purchase contract between buyers and sellers.

How do you start?

A neutral mediator panel assists you in reaching a voluntary, negotiated agreement. Choosing mediation to resolve real estate disputes promotes better relationships and reduces stress, costs, and time involved in other dispute resolution methods. Complete this Mediation/Dispute Form to start.

Pricing Information

The following pricing sheet includes the fees and expenses for dispute resolution processes.

• Buyer: $250
• Seller: $250
• Buyer vs. Seller / Seller vs. Buyer: $500

Disciplinary Ethics Complaints

Our Professional Standards Committee is responsible for enforcing NAR’s Code of Ethics, MLS Rules and membership responsibilities. There are two different types of complaints for alleged violations of these standards.

Ethics Complaint

Ethics Complaints are alleged violations of the Code of Ethics as well as our MLS and Membership Rules.

The Professional Standards Committee with the approval of the Board of Directors implemented a schedule of fines for certain Code of Ethics violations effective January 2015. A REALTOR® receiving a citation may either (1) pay the amount specified on the citation; 2) complete specified training when applies; or (3) request a full hearing. A list of applicable citations and fees.

Ethics Complaints can be emailed to Bay East. Please attach the complaint to this form.

Ethics Complaints Process

The following instructions will assist you in filing a Disciplinary Complaint

Step 1 – Review The Rules

Review the NAR’s Code Of Ethics and Bay East MLS Rules and Regulations to decide if a violation has occurred.

Step 2 – Download The Complaint Packet

Complaint Filing Packet

Step 3 – Fill In Your Name

Write in your name as the complainant.

Step 4 – Name The Respondent

Fill in the name(s) of the “Respondent” (the person(s) against whom the complaint is made. This MAY include the name of the Responsible Broker or Participant for an alleged violation of the Code of Ethics and/or violation of the MLS Rules & Regulations).

Step 5 – Identify The Violation

Specify which violation(s) that you are citing by checking the Code of Ethics Article(s) and/or entering the MLS Rules Section number(s).

Step 6 – Attach Support Documents

Attach a typed statement of the facts and circumstances that support your allegations. This statement will be marked “Exhibit 1”. You may also attach other supporting documents to your statement.

Step 7 – Complete The Form

Answer the remaining questions on the form.

Step 8 – File The Complaint

There is no fee for filing an ethics or grievance complaint. If a hearing panel determines a violation has occurred, the Respondent(s) will be assessed a $500 administrative fee.

Anonymous Complaint

Anonymous Complaints allow agents to file a complaint without identifying themselves. The most important criteria is that the alleged violation must be “touched, heard or seen” without testimony or witnesses.

If you feel a violation has occurred, the following information can help you file a complaint.

Anonymous Complaints Process

The Anonymous Compliant process lets agents file certain complaints without identifying themselves as the complainant. The most important criteria is the alleged violation must be able to be “touched, heard, or seen” without testimony or witnesses.

Step 1 – Download The Complaint Packet

Download the Complaint Filing Packet and write “Anonymous” in the section provided for “Complainant”.

Step 2 – Name The Respondent

Fill in the name(s) of the “Respondent” (the person(s) against whom the complaint is made. This MAY include the name of the Responsible Broker or Participant for an alleged violation of the Code of Ethics and/or violation of the MLS Rules & Regulations.)

Step 3 – IDENTIFY THE VIOLATION

Specify which violation(s) that you are citing by checking the Code Of Ethics Article(s) and/or Bay East MLS Rules and Regulations Section number(s).

Step 4 – Attach Evidence of Violation

Anonymous Complaints must be supported by evidence of the violation. For example, if it is an Article 12 (advertising) violation, the advertisement must accompany the complaint for processing.

Step 5 – Review process

After all the necessary information is received by Bay East, it will be reviewed by the Grievance Council. Please note that by filing a complaint anonymously, Bay East cannot reply or update the complainant as in a signed complaint.

Step 6 – Penalties

In addition to the normal options of the Grievance Council, Anonymous Complaints may result in a warning to the Respondent to correct the violation.

C.A.R. Free Legal Advice

C.A.R. offers members the incredible benefit of receiving free legal advice over the telephone or via an app you download on your phone.

The C.A.R. Legal Hotline offers free legal advice over the telephone on a vast array of real estate related topics such as contract interpretation, arbitration, litigation, tax issues, commission disputes, disclosure requirements, fair housing issues, laws governing homeowners’ associations, and so on. By contacting the C.A.R. Legal Hotline, you can speak directly to one of C.A.R.’s attorneys.

Hotline Hours: Monday – Friday 9 a.m. – 6 p.m. Saturday 10 a.m. – 2 p.m.

C.A.R. Legal App (iPhone & Android)

C.A.R. Legal App (iPhone & Android) is one of C.A.R.’s newest member benefits allowing members to connect to C.A.R. Legal Hotline via an app. The App will connect members to C.A.R. Legal and give them a quicker, more user-friendly experience while in the field. The Legal Hotline App will include information from the C.A.R. website such as the “What’s New” articles, Recent Laws and News from the current and previous year, all of the legal articles, information on new and revised Standard Forms, webinar videos, quick access to zipForm® mobile, direct dialing capabilities: to the Legal Hotline, Customer Service, the Finance Helpline, the Ombudsman Hotline, Outreach Request, and RPA Class Request, as well as quick links to the social media pages. Download the app now and stay on top of important legal issues, red alerts, and calls-to-action.

Apple iOS App
Google Android App

Professional Standards Articles of Interest

Did you know that it is unethical to either recommend a list price higher or lower price than market data, conditions or circumstances support? Standard of Practice 1-3 of the Code of Ethics states “REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.” Click here to read more.

Additional Professional Standards Information

State and local REALTOR® associations are responsible for enforcing NAR’s Code of Ethics through their Professional Standards Committees. These committees may also enforce their organization’s MLS Rules and Membership responsibilities.

• The main difference between ethics and arbitration complaints is REALTORS® can only receive disciplinary verdicts in ethics complaints. Verdicts in Arbitration Complaints can include disciplinary and monetary judgments.
• Only REALTORS® are subject to NAR’s Code of Ethics.
• REALTOR® associations can only determine whether NAR’s Code of Ethics or their MLS Rules have been violated. State licensing authorities and courts make the decisions on whether the law or regulations have been broken.
• REALTOR® associations can discipline REALTORS® for violating NAR’s Code of Ethics, their MLS Rules, and other membership responsibilities.
• The typical forms of discipline include required attendance at courses and seminars designed to increase REALTORS® understanding of the ethical duties or other responsibilities of real estate professionals. Verdicts can also include reprimands and fines, as well as suspension or termination for serious or repeat violations.
• REALTOR® associations cannot require members to pay money to the parties filing ethics complaints, award “punitive damages” for violations, or suspend /revoke a real estate professional’s license.

Statewide Suspension/Expulsion Program

At their 2012 mid-year meeting, the NAR Professional Standards Committee approved a motion to allow California to adopt a procedure for implementation of a pilot program (2-years), so that a suspension or expulsion, imposed by a local A.O.R. for violation of the Code of Ethics, shall be reported to C.A.R. to be reviewed by a panel of state directors, and possibly imposed on a state-wide basis.
Bay East is participating in this program.

• If you are suspended or expelled by your local association as a result of conduct that is in violation of the Code of Ethics, your association will file with C.A.R. a Suspension/Expulsion Report, which names you as respondent. The Report will be reviewed by C.A.R. and referred for hearing before a panel of three (3) C.A.R. Directors, to determine whether the suspension or expulsion should be imposed on a statewide basis.
• You will be given an opportunity to file a written statement explaining why you believe the suspension or expulsion should not be imposed on a statewide basis. There will be no hearing for you to attend with C.A.R. A panel of C.A.R. Directors, in a closed session, will consider the documents submitted by your local association, along with your written response, and will determine whether to impose your suspension or expulsion on a statewide basis.
• The decision made by the Directors at such a hearing does not disturb the findings or recommended discipline of the local Association that initially imposed the discipline, but only determines whether or not there is a state-wide imposition of the same discipline. A decision by C.A.R. to impose the suspension or expulsion state-wide shall be disseminated to all participating associations in the state.

If you have any questions, please contact the Professional Standards Department at professionalstandards@bayeast.org.

New Procedure for Obtaining Member Photos for Publication of Ethics Discipline

The current C.A.R. policy is to publish photos of members who are disciplined for ethics violations with a fine, reprimand, probation, suspension, or expulsion. The process for obtaining this photo has been changed as follows:

• After being found in violation of a publishable offense, a disciplined member will provide a photo to C.A.R. and the local Association within 10 calendar days after final adoption of the discipline recommended by the local Association’s Board of Directors.
• The member will provide a photo that is current, accurate and at least the size and quality of a passport photo along with a restatement of the authorization to use the photo in the new Form D-24.
• Members may simply take a digital photo, as long as it is of sufficient quality and size, and email it to the association along with Form D-24.
• Failure to provide the authorization with a photo in a timely manner will result in the suspension of membership until the authorization form and photo are provided.
• The disciplined member must own or have the right to use the submitted photo and must provide a license to use the photo consistent with the publication requirements.
• C.A.R. will publish a discipline summary without a photo if the photo has not been received in time and will include a note with the summary that the member was suspended for refusal to provide a photo.

DRE Real Estate Advertising Guidelines

The DRE Real Estate Advertising Guidelines are intended to assist California real estate licensees—brokers and salespersons—in understanding the many advertising requirements they are expected to know and follow. (08/2020)