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Arbitration

The Daytona Beach Area Association of REALTORS®

Arbitration is a service offered by the Daytona Beach Area Association of REALTORS® to resolve business disputes between real estate professionals and their clients. While arbitration is most often used to settle disagreements over commission entitlement, it can be used to address other business conflicts as well. There are two types of arbitration cases: mandatory and voluntary. Each category applies to specific situations, as outlined below.

Mandatory Arbitration

These cases require arbitration due to the nature of the relationships and involve:

  • Broker vs. Broker: Disputes between brokers over commission entitlements.
  • Client vs. Broker: A client dispute with their broker REALTOR® principal, arising out of an agency relationship, provided the client voluntarily agrees to be bound by the arbitration, subject to the Association’s right to decline arbitration based on the amount involved or the legal complexity of the dispute.

Voluntary Arbitration

These cases are eligible for arbitration by choice, including:

  • Broker vs. Sales Associate (Same Firm): Disputes within the same firm, often related to commission splits or internal agreements.
  • Broker REALTOR® vs. Broker (Non-Member): When a REALTOR® broker principal has a dispute with a broker who is not a REALTOR®.
  • Customer vs. Broker REALTOR® principal: Situations in which a written relationship has been created between the REALTOR® principal and a customer, and provided all parties to the dispute agree in writing to arbitrate.

Common Arbitration Cases

The most frequently filed arbitration cases are Broker vs. Broker disputes regarding commission entitlement. These cases often focus on determining the “procuring cause” of the sale—the party whose efforts ultimately led to the transaction. The Professional Standards Hearing Panel reviews the evidence and makes a determination on these cases.

To initiate an arbitration request, please complete and submit the Request for Arbitration Form (PDF). This process ensures fair and impartial resolution to business disputes within the real estate community.