Arbitration

Long Island Board of REALTORS®, Inc. (LIBOR) Members and MLS Participants agree and are bound to arbitrate through LIBOR all contractual and specific non-contractual disputes as defined by Article 17 of the Code of Ethics.

IMPORTANT

In order to bring an arbitration, the transaction must have actually closed.

An arbitration must be brought within 180 days after the closing of the transaction or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence, whichever is later.

Both Complainant(s) and Respondent(s) must be a REALTOR® Principal (MLS Participant, Designated REALTOR®, or Office Manager).

COMPLAINANT FILING FOR ARBITRATION

• Complainant initiates the filing of an arbitration request by filling out the Arbitration Request form which is located at www.lirealtor.com under Dispute Resolution Center.
• The Arbitration Request Form is where the Complainant enters the Complainant(s) information, such as name, address, and phone number. You should include the information where you want to be contacted in regard to your arbitration request.
• There may be more than one Complainant.
• A Complainant must be a REALTOR® Principal (MLS Participant, Designated REALTOR®, or Office Manager).
• The Arbitration Request Form is also where you enter the Respondent information.
• There may be more than one Respondent.
• All Respondents must be REALTOR® Principals (MLS Participant, Designated REALTOR®, or Office Manager).
• Complainant can name as Respondent a Realtor Principal, Firm, or both.
• Awards can only be made against named parties in the Arbitration Request and Agreement. Therefore, awards are not enforceable against parties not named in the Arbitration Request and Agreement. For example, if only a REALTOR® Principal is named as Respondent in the Arbitration Request, any award is not enforceable against the Firm. If only the Firm is named as Respondent in the Arbitration Request and Agreement, any award is not enforceable against the REALTOR® Principal.
• What is the advantage of naming both the REALTOR® Principal and the Firm as Respondents? Naming a REALTOR® Principal as a Respondent enables you to know who will participate in the hearing from the Respondent’s firm and naming the Firm may increase the likelihood of collecting any resulting award.
• You need to choose whether you want Respondent to be the REALTOR® Principal, Firm, or both.
• You also must include a detailed narrative that explains the facts that constitute your arbitration request.
• You must indicate the address of the home for which the commission is in dispute, the amount in dispute, and the date of closing (or date of lease if rental).
• Also include the name of any REALTOR® non-principals affiliated with your firm that has a financial interest in the outcome of the arbitration. This person has the right to be present throughout the hearing.
• Gather all your documentation to support your arbitration request and return it with your Arbitration Request form.
• You must indicate whether or not the circumstances giving rise to the arbitration request is involved in civil or criminal litigation.
• You must decide if you would like to request the mediation services of LIBOR. Please see the Mediation Section in Dispute Resolution Center for a detailed description of the benefits of Mediation.
• By submitting the Request and Agreement to Arbitrate the Complainant is consenting to the arbitration and is agreeing to be bound by the arbitration award and to comply with any award promptly.
• Before your Arbitration Request can be processed, you must submit to LIBOR payment in the amount of $500.00 for arbitration filing fees.
• The Arbitration Request, narrative, and any supporting documentation can be filed online, emailed at PSC@lirealtor.com, faxed to (631)661-6919, or mailed to LIBOR, PSC Dept. 1305 Walt Whitman Road, Suite 310, Melville, New York 11747.

AFTER COMPLAINANT SUBMITS THE REQUEST AND AGREEMENT TO ARBITRATE

• When the Professional Standards Staff receives the Complainant’s Request and Agreement to Arbitrate along with the statement, supporting documentation, and $500 filing fee, they will schedule the complaint to be heard by the Grievance Committee.
• The Grievance Committee will decide whether or not the case is arbitrable.
• The Grievance Committee considers the following factors in deciding whether or not a case is arbitrable:
• Are all the necessary parties named in the request for arbitration;
• Was the request filed within 180 days after the closing of the transaction or within 180 days after the facts constituting the arbitrable matter could have been known in the exercise of reasonable diligence;
• Were the parties members of LIBOR at the time the facts giving rise to the dispute occurred;
• Is litigation pending in connection with the same transaction (there is a possibility arbitration will be held in abeyance if a matter is pending in litigation);
• Is the matter arbitrable.
• If the Grievance Committee decides that the case is not arbitrable, the Complainant will be notified
• If the Grievance Committee decides that the case is arbitrable, the case will proceed to an Arbitration Hearing before the New York State Association of REALTORS® (NYSAR) Professional Standards Committee under its Statewide Professional Standards Enforcement program.
• The Statewide Program will be operated by one or more staff members employed by NYSAR known as the Professional Standards Administrator(s) (PSA). 
• Once the matter is forwarded to NYSAR by LIBOR, NYSAR’s PSA will be the point of contact for all consumer and member contacts regarding arbitration matters.
• Further information regarding NYSAR’s Statewide Enforcement Program can be found HERE.

RESPONDENT

• If the Grievance Committee finds that the Complainant’s case is arbitrable, a packet will be sent to the Respondent along with a letter advising the Respondent that the Complainant(s) has submitted a Request for Arbitration against Respondent(s).
• Respondent will be sent a copy of the Complainant’s Request and Agreement to Arbitrate along with a copy of the Complainant’s statement of complaint and all documentary evidence produced by the Complainant.
• The Respondent has 20 days from the service of these documents to file their reply paperwork.
• The Respondent must also send in a check in the sum of $500.00 for arbitration filing costs.

ARBITRATION HEARING

• NYSAR's Arbitration Hearing Panel will conduct the hearing fairly and in accordance with due process.

FEES

• As noted, members involved in a request for arbitration as either the complainant or respondent shall each be required to post a deposit of $500.
• If the arbitration request is resolved through mediation or some other means before, after, or during a hearing has been scheduled, each party will have $250 of its deposit returned.
• If the Hearing Panel issues an award, the prevailing party in the award shall have its $500 deposit returned, and the deposit of the non-prevailing party will be retained in full.
• In the unlikely event of a split decision in which there is no single prevailing party, each party’s deposit will be retained in full.