What was a requirement of the code of ethics concerning disputes between REALTORS®?

The code of ethics for REALTORS® emphasizes the importance of resolving disputes in a manner that promotes professionalism and integrity within the industry. One of the primary requirements is that REALTORS® must seek arbitration to settle monetary disputes. This process allows for a structured environment where both parties can present their cases to an impartial third party, who then makes a binding decision.

Arbitration is preferred in these cases because it is generally more efficient and less adversarial than other forms of dispute resolution, like litigation. By encouraging arbitration over monetary disputes, the code aims to uphold the ethical standards of the profession and maintain amicable relationships among REALTORS®. Furthermore, this requirement better serves clients and the public by prioritizing resolution methods that reduce conflict and foster cooperation within the competitive real estate market.

Other options, such as mediation, litigation, or informal discussions, either lack the formal structure that arbitration provides or do not prioritize resolution in a way that aligns with the ethical standards set forth for REALTORS®. Mediation can be part of the process but is not specifically mandated for arbitration of money matters. Litigation is generally considered a last resort due to its time-consuming and contentious nature, which can ultimately impact the reputation of the industry. Informal discussions may also be insufficient for resolving monetary disputes effectively