Arizona REALTORS® Ahead of the Curve on Dispute Resolution

In a recent REALTOR® Magazine story, Carolyn D’Agosta, 2016 chair of the National Association of REALTORS® Professional Standards Committee, stated that, “As of Jan. 1, 2016, all associations are required to offer ombudsman services…either directly or through an agreement with other associations.”

Good news! The Arizona Association REALTORS® (AAR) has had an ombudsman program since 2001, so that puts us ahead of the curve, but is it just for consumers? “No,” says Tammy Franco, AAR professional standards administrative assistant. “Our ombudspersons benefit consumers and REALTOR® members who seek an immediate, informal resolution to common misunderstandings and who answer general questions about real estate practices.”

What’s the difference between an ombudsman and a mediator? NAR defines an ombudsman as someone who communicates the concerns of one party to the other over the phone, while a mediator assists both parties to communicate at a meeting with the objective of reaching a mutual agreement between the parties in writing. Either way, the goal is to resolve real estate related issues.

“Our ombudsman success rate is around 71%,” said AAR Professional Standards Administrator Carole Ridley.

What’s the difference between mediation and arbitration? Mediation is generally led by a single mediator, while arbitration involves a panel that hears both parties and hands down a written decision. “Arbitration is kind of like a civil trial by jury,” observed Ridley.  So, while mediators seek to facilitate a mutually acceptable settlement, AAR’s arbitration panels decide cases on their merits and issue a ruling.

For more about AAR’s Ombudsman Programs, click here and Mediation Programs, click here.