Mediation (Part 2 of 2)

For nearly a decade, NAR guidelines have required that local associations offer mediation before an arbitration hearing is held.  This is because mediation is the preferred dispute resolution method of the National Association of REALTORS. Members are not required to mediate and if they enter into mediation and do not resolve their differences, they may still proceed with arbitration.  Still, there are many reasons for a REALTOR to make a good effort with mediation, which we will discuss later.

Note:  In the case of an arbitration hearing, a disputed commission is awarded to one party or the other.  Although panels are allowed to split the award, NAR does not encourage this. However, in mediation, the parties can and often do split the commission.