Arbitration hearings are often based on: a. disputes between REALTORS® associated with the same firm.

Arbitration hearings are often based on:

a. disputes between REALTORS® associated with the same firm.

b. disputes between buyers and sellers.

c. procuring cause disputes between buyers and REALTORS®.

d. procuring cause disputes between REALTORS® associated with different firms.

Answer: d. procuring cause disputes between REALTORS® associated with different firms.

Arbitration hearings are mainly centered on the procuring cause cases between REALTORS® of other firms. The procuring cause refers to activities and actions that a real estate broker does in order to achieve the sale of any property. In real estate dealings, it can become a standard occurrence for several agents to assert that they were the procuring cause of the sale and are consequently owed commission. This may result in arguments, especially when two agents from different brokerages both worked with the buyer and are convinced they initiated this chain of events that secured a positive closing.

Arbitration is a mechanism through which such disputes can be resolved in an impartial manner, without litigation. If two agents allege claim of being a procuring cause on the same transaction, their local real estate association may conduct an arbitration hearing. A jury will listen to arguments and evidence from both sides before deciding who is eligible for the commission . The dispute may also take a relatively shorter time, be less costly and is conducted off the public eye. It seeks to attain a fair result established on REALTOR® ethics and standards. Due to the nature of real estate transactions which often involve brokers representing cooperating firms, arbitration is one way in which procuring cause disagreements can be tackled.