Background
The Knoxville Area Associations of REALTORS® (“The Association” ) is
responsible for enforcing the REALTORS® Code of Ethics. The Code of Ethics
imposes duties above and in addition to those imposed by law or regulation,
which apply only to real estate
professionals who choose to become REALTOR® members of The Association.
Many difficulties between real estate professionals (whether REALTORS® or not)
result from misunderstanding, miscommunication, or lack of adequate
communication. If you have a problem with a real estate professional, you may
want to speak with them or with a principal broker in the firm. Open,
constructive discussion often resolves questions or differences, eliminating
the need for further action.
If, after discussing matters with your real estate professional or a principal
broker in that firm, you are still not satisfied, you may want to contact the
Professional Standards Secretary of The Association.
If, after taking these steps, you still feel you have a grievance, you
may want to consider filing an ethics complaint. You will want to keep in mind
that . . .
• Only REALTORS® are subject to the Code of Ethics of the National
Association of REALTORS®.
• If the real estate professional (or their broker) you are dealing with is not
a REALTOR®, your only recourse may
be the state real estate licensing authority or the courts.
• The Association will determine whether the Code of Ethics has been violated,
not whether the law or real estate regulations have been broken. Those decisions can only be made by the
licensing authorities or the
courts.
• The Association can discipline REALTORS® for violating the Code of Ethics.
Typical forms of discipline include
attendance at courses and seminars designed to increase REALTORS®' understanding of the ethical duties or
other responsibilities of real estate professionals. REALTORS® may also be reprimanded, fined, or their membership
can be suspended or terminated for serious or repeated violations. The Association cannot require REALTORS® to
pay money to parties filing ethics complaints; can-not award "punitive damages" for violations of the Code of
Ethics; and cannot suspend or
revoke a real estate professional's license.
• The primary emphasis of discipline for ethical lapses is educational, to
create a heightened awareness of and
appreciation for the duties the Code imposes. At the same time, more severe forms of discipline, including fines
and suspension and termination of membership may be imposed for serious or repeated violations.
Filing an Ethics
Complaint
The Association can provide you with information on the procedures for filing
an ethics complaint. Here are some general principles to keep in mind.
• Ethics complaints must be filed with The Association within one hundred eighty (180) days from the time a
complainant knew (or reasonably
should have known) that potentially unethical conduct took place.
• The REALTORS® Code of Ethics consists of seventeen (17) Articles. The duties
imposed by many of the
are explained and illustrated
through accompanying Standards of Practice or case interpretations.
• Your complaint should include a narrative description of the circumstances
that lead you to believe the Code of
Ethics may have been violated.
• Your complaint must cite one or more of the Articles of the Code of Ethics which
may have been violated. Hearing
Panels decide whether the Articles expressly cited in complaints were violated—not whether Standards of
Practice or case
interpretations were violated.
• The Association’s Grievance Committee may provide technical assistance in
preparing a complaint in proper form
and with proper content.
Before
the Hearing
• Your complaint will be reviewed by The Association's Grievance Committee.
Their job is to review complaints to
determine if the
allegations made, if taken as true, might support a violation of the Article(s)
cited in the complaint.
• If the Grievance Committee dismisses your complaint, it does not mean they do
not believe you. Rather, it means
that they do not feel that your allegations would support a Hearing Panel's conclusion that the Article(s) cited in
your complaint had been violated. You may want to review your complaint to see if you cited an Article appropriate
to your allegations.
• If the Grievance Committee forwards your complaint for hearing, that does not mean they have decided the Code
of Ethics has been violated. Rather, it means they feel that if what you allege in your complaint is found to have
occurred by the Hearing Panel, that panel may have reason to find that a violation of the Code of Ethics occurred.
• If your complaint is dismissed as not requiring a hearing, you can appeal that dismissal to the Board of Directors
of The Association.
Preparing
for the Hearing
• Familiarize yourself with the hearing procedures that will be followed. In
particular you will want to know about
challenging potential panel members, your right to counsel, calling witnesses, and the burdens and standards of
proof that apply.
• Complainants have the ultimate responsibility ("burden") of proving
that the Code of Ethics has been violated. The
standard of proof that must be met is "clear, strong and convincing," defined as ". . . that measure or degree of
proof which will produce a firm belief or conviction as to the allegations sought to be established." Consistent with
American jurisprudence, respondents are
considered innocent unless proven to have violated the Code of Ethics.
• Be sure that your witnesses and counsel will be available on the day of the
hearing. Continuances are a privilege—
not a right.
• Be sure you have all the documents and other evidence you need to present
your case.
• Organize your presentation in advance. Know what you are going to say and be
prepared to demonstrate what
happened and how you believe the Code of
Ethics was violated.
At the Hearing
• Appreciate that panel members are unpaid volunteers giving their time as an
act of public service. Their objective
is to be fair, unbiased, and impartial; to determine, based on the evidence and testimony presented to them, what
actually occurred; and then to determine whether the facts as they find them support a finding that the Article(s)
charged have been violated.
• Hearing Panels cannot conclude that an Article of the Code has been violated
unless that Article(s) is specifically
cited in the complaint.
• Keep your presentation concise, factual, and to the point. Your task is to
demonstrate what happened (or what
should have happened but did not), and how
the facts support a violation of the Article(s) charged in the complaint.
• Hearing Panels base their decisions on the evidence and testimony presented
during the hearing. If you have
information relevant to the issue(s) under
consideration, be sure to bring it up during your presentation.
• Recognize that different people can witness the same event and have differing
recollections about what they saw.
The fact that a respondent or their witness recalls things differently does not mean they are not telling the truth as
they recall events. It is up to the Hearing Panel, in the findings of fact that will be part of their decision, to determine
what actually happened.
• The Hearing Panel will pay careful attention to what you say and how you say
it. An implausible account does not
become more believable through repetition or
through volume.
• You are involved in an adversarial process that is, to some degree,
unavoidably confrontational. Many violations of
the Code of Ethics result from misunderstanding or lack of awareness of ethical duties by otherwise well-meaning,
responsible real estate professionals. An ethics complaint has potential to be viewed as an attack on a
respondent's integrity and professionalism. For the enforcement process to function properly, it is imperative for all
parties, witnesses, and panel members to
maintain appropriate decorum.
After
the Hearing
• When you receive the Hearing Panel's decision, review it carefully.
• Findings of fact are the conclusions of impartial panel members based on
their reasoned assessment of all of the
evidence and testimony
presented during the hearing. Findings of fact are not appealable.
• If you believe the hearing process was seriously flawed to the extent you
were denied a full and fair hearing,
there are appellate procedures that can be invoked. The fact that a Hearing Panel found no violation is not
appealable.
• Refer to the procedures used by the local Board or Association of REALTORS®
for detailed information on the
bases and time limits for appealing decisions or requesting a rehearing. Rehearings are generally granted only
when newly discovered evidence comes to light
(a) which could not reasonably have been discovered and produced at the original hearing and
(b) which might have had a bearing on the Hearing Panel's decision.
• Appeals brought by ethics respondents must
be based on
(a) a perceived
misapplication or misinterpretation of one or more Articles of the Code of
Ethics,
(b) a procedural
deficiency or failure of due process, or
(c) the nature or
gravity of the discipline proposed by the Hearing Panel.
• Appeals brought by ethics complainants
are limited to procedural deficiencies or failure of due process that may
have prevented a full and fair hearing.
Conclusion
Many ethics complaints result from misunderstanding or a failure in
communication. Before filing an ethics complaint, make reasonable efforts to
communicate with your real estate professional or a principal broker in the
firm. If these efforts are not fruitful, The Association can give you the
procedures and forms necessary to file an ethics complaint.