THE REALTOR CODE OF ETHICS

1
THE REALTOR CODE OF ETHICS

• THE REALTOR 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 REALTORS.
• REALTOR Associations can discipline their
  members for violating the Code of Ethics.
• The primary emphasis of discipline for ethical
  lapses is educational, to heighten awareness of
  the duties of the Code of Ethics. More severe
  forms of discipline include fines, suspension,
  and termination of membership and may be imposed
  for serious or repeated violations. Associations
  cannot require REALTORS to pay money to parties
  filing complaints cannot award "punitive
  damages" or suspend or revoke a license.

2
BEFORE FILING AN ETHICS COMPLAINT

• BEFORE FILING AN ETHICS COMPLAINT
• 1. Many complaints result from misunderstanding
  or a failure in communication. Before filing a
  complaint, make reasonable efforts to communicate
  with the real estate professional, office manager
  and or principal broker.
• 2. If you still feel you have a grievance, you
  may consider filing an ethics complaint. In that
  case, contact the local association of REALTORS
  to determine if the agent is a REALTOR. Staff
  will guide you to the REALTORS Association to
  file your complaint.
• If the person you are dealing with is not a
  REALTOR, the only recourse may be the state
  licensing authority or the courts. REALTORS
  Associations determine whether the Code of Ethics
  has been violated, not whether the law or state
  real estate regulations have been broken.

3
WHAT TO DO WHEN FILLING OUT YOUR COMPLAINT

• WHAT TO DO WHEN FILLING OUT YOUR COMPLAINT
• Be clear about the relationship between
  Article(s) of the Code of Ethics youre citing
  and the reason you believe the Article(s) was
  violated. If you are not sure which Article(s)
  applies to your situation, make your best
  estimate.
• Submit a detailed account marked "Exhibit A and
  all relevant material with the original forms
  that support your claim to the Association.
  Complainants have the 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."
• In addition to Exhibit A you may submit relevant
  evidence including, but not limited to
  transaction documents, photos, correspondence,
  MLS printouts, telephone bills, ect.

4
ONCE YOUR COMPLAINT IS FILIED

• ONCE YOUR COMPLAINT IS FILIED
• Your complaint will be reviewed by the Grievance
  Committee. Their job is to review complaints to
  determine if allegations made are assumed true,
  support a probability of a violation of the
  Article(s) cited.
• If the Grievance Committee forwards your
  complaint for a hearing that does not mean the
  Code of Ethics has been violated. Rather, it
  means that if what you alleged in your complaint
  is found to have occurred by the hearing panel,
  the panel may have reason to find a violation of
  the Code of Ethics. If there is a hearing you
  will be given 21 days notice prior to the
  hearing. You will also be given the opportunity
  to request that the hearing not be scheduled on
  dates that conflict with your schedule.
• If your complaint is dismissed as not requiring
  a hearing, you can appeal that dismissal to the
  Board of Directors. Be sure that your witnesses
  and counsel will be available on the day of the
  hearing.

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WHAT TO DO WHEN A COMPLAINT HAS BEEN FILED
AGAINST YOU

• WHAT TO DO WHEN A COMPLAINT HAS BEEN FILED
  AGAINST YOU
• REALTORS are obligated to participate in ethics
  proceedings. All responses must be filed within
  15 calendar days from the date on the notice of
  complaint. Submit a detailed account marked
  "Exhibit A and all relevant material with the
  original forms that support your claim.
• The San Diego Association of Realtors does not
  have authority to revoke a license. Penalties
  for violations of the Code of Ethics can include
  letters of warning, fines of up to 5,000, and
  the requirement of additional ethics courses. In
  severe cases, suspension or expulsion from the
  Association may result.

6
WHAT TO EXPECT IF YOUR CASE IS SCHEDULED FOR A
HEARING

• WHAT TO EXPECT IF YOUR CASE IS SCHEDULED FOR A
  HEARING
• Familiarize yourself with the procedures in the
  California Code of Ethics and Arbitration Manual.
  Proceedings regarding the matter will be kept
  confidential. Each party will be given the
  opportunity of making an opening and closing
  statements. Prior to the giving of testimony, all
  parties and witnesses will be sworn by the
  Presiding Officer.
• Any party may be represented by legal counsel,
  their Broker or Designated REALTOR at the
  hearing. 
• REALTOR members have a duty to give evidence
  when requested by the Panel.
• Parties will be given 21 days notice prior to the
  hearing date. Parties will also be given the
  opportunity to request that the hearing not be
  scheduled on dates that conflict with their
  schedule.
• Complainants have the 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."

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WHAT TO EXPECT IF YOUR CASE IS SCHEDULED FOR A
HEARING

• WHAT TO EXPECT IF YOUR CASE IS SCHEDULED FOR A
  HEARING
• Respondents are considered innocent unless proven
  to have violated the Code of Ethics.
• Witnesses, except for those with a vested
  financial interest in the outcome of the matter,
  may only be present during the hearing while
  testifying and will be excused from the hearing
  room after giving testimony.
• There will be a mechanical tape recording of the
  disciplinary hearing.
• The panel members are unpaid volunteers giving
  their time as an act of public service. Each
  panel member will be furnished with a copy of the
  complaint and response. Their objective is to be
  fair, unbiased, and impartial to determine,
  based on the evidence and testimony, what
  actually occurred and then to determine whether
  the facts support a finding that the Article(s)
  charged have been violated. The parties shall not
  discuss or attempt to discuss the case with any
  hearing Panel member except during the hearing.

8
HEARING PREPARATION

• HEARING PREPARATION
• If a party intends to be represented, the party
  must give written notice at least fifteen (15)
  calendar days before the hearing. Failure to
  provide notice as required does not invalidate
  the right to be represented, but may result in
  the Panel granting a continuance to allow other
  parties the ability to seek and obtain
  representation.  If a continuance is granted due
  to a failure to give timely notice of
  representation, a continuance fee will be
  assessed to the party failing to give notice.
• Parties are strongly encouraged to provide all
  materials and witness lists, prior to the hearing
  to avoid unnecessary continuances or delays
  whereas a continuance fee my be assessed. Be
  sure you have all the documents, like the
  transaction file and other evidence you need to
  present your case. If you bring any additional
  information to the hearing (exhibits, etc.)
  please bring 7 copies. For any copies made at
  SDAR parties will be charged at .25 cents per
  copy.
• Organize your presentation in advance. Be
  prepared to demonstrate what happened (or what
  should have happened), and how the facts support
  a violation of the Article(s) or not, charged in
  the complaint.
• The hearing panel will pay careful attention to
  what you say and how you say it. Keep your
  presentation concise, factual, and to the point.
  . If you have information relevant to the
  issue(s) under consideration, be sure to address
  it up during your presentation. Continuances are
  a privilege - not a right.

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YOUR RIGHTS AS A PARTICIPANT IN A HEARING

• YOUR RIGHTS AS A PARTICIPANT IN A HEARING
• PARTIES TO A HEARING HAVE A RIGHT
• A right to due process
• A right to counsel
• A right to calling witnesses, or subpoena
  documents
• A right to time to respond to allegations
• A right to proper notice of hearing
• A right to challenge potential panelist
• A right to explain their case in its entirety
• A right to question the other parties.
• The Respondents Designated REALTOR/broker of
  record has a right to attend the hearing.

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AFTER THE HEARING

• AFTER THE HEARING
• The hearing panel's decision will include a
  Findings of Fact, the conclusions of impartial
  panel based on their reasoned assessment of
  evidence presented.
• If parties believe the hearing process was
  seriously flawed, to the extent you were denied a
  fair hearing, there are review procedures that
  can be requested. The fact that a hearing panel
  found no violation is not a reason to have an
  appeal. Refer to the procedures, 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 panel's decision.
  
• Appeals brought by 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 failures of
  due process that may have prevented a full and
  fair hearing.