The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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 REALTOR’S® 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. REALTOR’S® Associations determine whether the Code of Ethics has been violated, not whether the law or state real estate regulations have been broken.

The Trusted Voice of San Diego Real Estate WHAT TO DO WHEN FILLING OUT YOUR COMPLAINT 1. Be clear about the relationship between Article(s) of the Code of Ethics you’re 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. 2.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." 3.In addition to Exhibit A you may submit relevant evidence including, but not limited to: transaction documents, photos, correspondence, MLS printouts, telephone bills, ect.

The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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."

The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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.

The Trusted Voice of San Diego Real Estate 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.