house rules

ARBITRATION OF REAL PROPERTY DISCLOSURE DISPUTES

IOWA REALTY

Rules and Procedures for Iowa Realty Real Property Disclosure Disputes. Click here

 

Fee Schedule for Iowa Realty Real Property Disclosure Disputes. Click here

 

FAQ for Iowa Realty Real Property Disclosure Disputes. Click here


MICHIGAN ASSOCIATION OF REALTORS

Rules and Procedures for Michigan Real Property Disclosure Disputes. Click here

 

Fee Schedule for Michigan Real Property Disclosure Disputes. Click here

 

FAQ for Michigan Residential Real Property Arbitration. Click here

 

MINNESOTA ASSOCIATION OF REALTORS

Rules and Procedures for Minnesota Real Property Disclosure Disputes. Click here

 

Fee Schedule for Minnesota Real Property Disclosure Disputes for Purchase and Arbitration Agreements signed PRIOR TO August 1st, 2018. Click here

 

Fee Schedule for Minnesota Real Property Disclosure Disputes for Purchase and Arbitration Agreements signed AFTER August 1st, 2018. Click here

 

FAQ for Minnesota Residential Real Property Arbitration. Click here

Minnesota Residential Real Property Arbitration Rules - Including Mobile Homes

Click here to download a PDF version of these rules

Adopted by National Center for Dispute Settlement and the Minnesota Association of REALTORS®.

Effective August 1, 2018

1. Agreement of Parties

These rules have been adopted by National Center for Dispute Settlement (NCDS) and the Minnesota Association of REALTORS® (MAR) to govern arbitration of disputes between seller(s), buyer(s) and licensees representing or assisting buyers and sellers arising out of or relating to the material facts affecting the use or enjoyment of the property. These rules shall apply whenever all parties have signed the Arbitration Disclosure and Residential Real Property Arbitration Agreement (the “Agreement”) as presented with the MAR Purchase Agreement or as otherwise agreed to by all parties. For purposes of these rules, “All parties” include the buyer(s), seller(s), licensee representing or assisting the seller(s) and licensee representing or assisting the buyer(s). These rules shall be applied as set forth in the Agreement. They apply to the extent that they are not inconsistent with applicable statutes or the Agreement of the parties. The parties shall be deemed to have agreed to the rules in the form in effect when the Agreement was entered into by the parties.

2. Initiation of Proceedings
  1. Arbitration is initiated by the filing of a Demand for Arbitration or Submission Agreement with NCDS in accordance with the Agreement of the parties. The initiating party shall:
    1. Prepare a written notice to the other party of its intention to arbitrate (“Demand”), which notice shall contain a statement setting forth the nature of the dispute, the amount involved (if any) and the remedy sought; and;
    2. File four (4) copies of the Demand, together with two (2) copies of the complete Purchase Agreement, two (2) copies of the Arbitration Disclosure and Residential Real Property Arbitration Agreement, two (2) copies of any and all inspection reports prepared for claimant, and the appropriate administrative fee as provided in the Administrative Fee Schedule. These documents must be filed by mailing to NCDS at 12400 Coit Road, Suite 1230, Dallas, TX 75251. Any request for arbitration must be filed within the time stated in the Agreement.
  2. When arbitration is initiated by a Submission Agreement, the Provisions of 2.a.ii shall apply except that no Demand is required.
  3. NCDS shall serve a copy of the Demand upon all of the respondents named. NCDS thereafter shall serve upon all parties and the Arbitrator(s) copies of all additional documents and communications to or received from any other party to the proceeding.
  4. After initiation of the proceeding and filing of any reply documents, if any party desires to make any new or different claim or add a party who has signed the Agreement such claim shall be made in writing and filed with NCDS in accordance with Section 2.a hereof. The party or parties against whom the claim is asserted shall have a period of fourteen (14) days from the date of the mailing by NCDS within which to file an answer with NCDS. Within fourteen (14) days prior to the arbitration hearing, no new or different claim may be submitted without the written agreement of all parties and the Arbitrator(s). With the Demand for Arbitration or Submission Agreement or any reply document or counterclaim, any party may elect, in writing, to have the case heard by three (3) Arbitrators. With any Demand for Arbitration or Submission Agreement or any reply document or counterclaim, any party may elect, in writing, to have all case communications sent electronically by providing the appropriate email address.
  5. The Arbitrator(s) may request clarification of the allegations in and/or the timeliness of the Demand or any counterclaim, in which case the Arbitrator(s) may request that the appropriate party make such clarification(s) within fourteen (14) days, and the Arbitrator(s) may, if the party does not sufficiently clarify within that time, dismiss the claim and/or entire Demand against any party based on lack of clarification. Any party may request that the Arbitrator(s) request such clarification on the basis of unclear and/or lack of allegations against a party or based on timeliness. $500.00 of the filing fee shall be retained regardless of such a disposition to cover the administration costs of the case.
  6. NCDS shall process any Demand received beyond the 24-month limitation period and allow the appointed Arbitrator(s) to evaluate the Demand. The Arbitrator(s) shall have the ability to issue a decision disposing of the arbitration if it is found to be untimely and does not allege fraud, in which case $500.00 of the filing fee shall be retained.
3. Appointment of Arbitrator(s)

National Center for Dispute Settlement shall appoint Arbitrators from its panel of persons knowledgeable in residential real estate disputes.

  1. The dispute shall be heard and determined by one Arbitrator, except as provided in Section 3.b. The Arbitrator shall be appointed in the following manner: Immediately after the filing of the demand or submission, NCDS shall submit simultaneously to each party to the dispute an identical list containing an odd number of names of persons chosen from the panel. The number shall be determined by the number of parties to the dispute and shall include one more name than the number of parties. Each party to the dispute shall have fourteen (14) days from the mailing date in which to strike one name, number the remaining names to indicate the order of preference, and return the list to NCDS. If a party does not return the list within the time specified, all persons named therein shall be deemed acceptable to that party. From among the persons who have been approved on all lists, and in accordance with the designated order of mutual preference, NCDS shall invite the acceptance of an Arbitrator to serve. If acceptable Arbitrators are unable or unwilling to act, for any reason, NCDS shall submit simultaneously another identical list of names of persons chosen from the panel allowing the parties an additional seven (7) days from the second mailing date in which to strike one name, number the remaining names to indicate the order of preference and return the list to NCDS. If acceptable Arbitrators are unable or unwilling to act, for any reason, after the second selection process, NCDS shall repeat the selection process until an acceptable Arbitrator who is able and willing to act has been chosen.
  2. At the written request of any party to the dispute as set forth in Section 2.d and upon payment of the additional fee by the requesting party, a panel of three Arbitrators will be appointed to decide the dispute. NCDS shall increase the number of persons on the list submitted, as described above. All other provisions remain the same as set forth above. NCDS shall appoint Arbitrators from its panel of persons knowledgeable in residential real estate disputes.
4. Qualifications of an Arbitrator(s)

No person shall serve as Arbitrator(s) in any arbitration in which that person has any financial or personal interest in the result of the arbitration. A person appointed as Arbitrator shall disclose to NCDs any fact or circumstance likely to affect impartiality, including any bias or any financial or personal interest in the result of the arbitration or any past or present relationship with the parties or their counsel. Upon receipt of such information from the Arbitrator or other source, NCDS shall communicate the information to the parties and, if it deems appropriate to do so, to the Arbitrator. Any party to the arbitration that has a factual objection to the service of any Arbitrator shall notify NCDS as promptly as possible. NCDS shall determine whether the Arbitrator should be disqualified and shall inform the parties of its decision, which shall be conclusive.

5. Vacancy

In the event of a vacancy of an appointed Arbitrator occurs or if an appointed Arbitrator is unable to serve promptly, NCDS shall submit another list of names of persons chosen from the panel allowing the parties an additional seven (7) days from that mailing date in which to strike one name, number the remaining names to indicate the order of preference and return the list to NCDS. If the parties fail to agree to any of the persons named after that selection process, NCDS shall have the power to make the appointment from among other members of the panel without the submission of any additional list. The Arbitrator shall be subject to disqualification for the reasons specified in Section 4.

6. Time and Place of Hearing

NCDS shall submit a 90-day calendar to the parties allowing each party to strike the dates they are unavailable. Upon receiving the calendars from the parties, the Arbitrator(s) shall fix the date, time and location of the hearing within 30 days of receipt of the parties’ calendars, notice of which hearing must be given to the parties at least fourteen (14) days in advance unless waived by the parties. The hearing will be held at the site of the residential real property, to better allow the Arbitrator(s) and the parties to consider the subject of the claim. Under compelling circumstances or if all parties agree, an alternate location may be utilized. In the event an alternative location is required, the hearing will be held at such other suitable place as the Arbitrator(s) may designate. If all parties agree, the Arbitrator(s) may consider the case on submitted documents only.

In the event of a multiple day hearing at the mutual request of the parties, the Arbitrator(s) can impose an additional fee to be shared equally by the parties; if only one party is seeking the additional day of hearing, they are responsible for the additional fee and the Arbitrator’s decision shall address responsibility for the additional fees. The additional fee is not to exceed the initial administrative fee.

7. Representation

Any party to the proceeding may attend the hearing or be represented at the hearing by another person. In the case of representation by an attorney, in the interest of fairness to all parties, the party retaining counsel or their attorney must advise NCDS and the other parties of the identity of their representative at least five (5) days prior to the date of the hearing. Failure to follow this rule with regard to notice may result in an adjournment of the scheduled hearing with any costs borne by the party failing to give timely notice.

8. Attendance at Hearings

All persons who are parties to the arbitration agreement, as well as representatives, are entitled to attend hearings. Parties are entitled to have witnesses attend hearings with proper notice, but witnesses may be sequestered at the discretion of the Arbitrator(s). The Arbitrator(s) shall determine whether any other person may attend the hearing.

9. Postponements

Hearings shall be postponed by the Arbitrator(s) only for good cause. All requests for postponements shall be communicated to the Arbitrator(s) through NCDS.

10. Confidentiality and Record of the Hearing

The proceedings are intended to be confidential. As an informal proceeding, there is no requirement that a stenographic record be taken of the hearing. Any party who wishes to, may make such a provision for a certified court stenographer at that party’s own expense. A copy of the transcript must be provided to the Arbitrator(s). The parties may make appropriate notes of the proceedings, but audio or video recording are strictly prohibited.

11. Oaths

The Arbitrator(s) shall require witnesses to testify under oath or affirmation administered by any duly qualified person.

12. Proceedings and Communication with Arbitrator(s)

The hearing shall be conducted by the Arbitrator in any manner which will permit full and expeditious presentation of the case by both parties. Any person in attendance shall defer to the Arbitrator regarding any rules of decorum or other procedural issues that arise during the Hearing.

Normally the hearing shall be completed in one day but the Arbitrator(s) may, for good cause, schedule an additional hearing. A hearing shall be opened by the recording of the place, time and date of the hearing, the presence of the Arbitrator(s) and parties, and counsel, if any, and by the receipt by the Arbitrator(s) of the statement of the claim and answer, if any. The Arbitrator(s) may, at the beginning of the hearing, ask for statements clarifying the issues involved. The complaining party shall then present its claim and proofs and its witnesses, who shall submit to questions or other examination. The Arbitrator(s) has discretion to vary this procedure but shall afford full and equal opportunity to all parties for the presentation of any material and relevant proofs. Exhibits, when offered by either party, may be received in evidence by the Arbitrator(s). The names and addresses of all witnesses and a list of exhibits in the order received shall be made a part of the record. There shall be no direct communications between the parties and the Arbitrator other than at the hearing except when initiated by the Arbitrator pursuant to Section 6 and limited to the time and place of the hearing.

13. Arbitration in the Absence of a Party

Unless the law provides to the contrary, the arbitration may proceed in the absence of any party or representative who, after due notice, fails to be present or fails to obtain an adjournment. An award shall not be made solely on the absence of a party. The Arbitrator shall require the party who is present to submit such evidence as the Arbitrator may require for the making of an award.

14. Evidence

The parties may offer such evidence as is relevant and material to the controversy and shall produce such additional evidence as the Arbitrator may deem necessary to an understanding and determination of the dispute. Upon the request of any party or independently, an Arbitrator authorized by law may, but shall not be required to, subpoena witnesses or documents. The Arbitrator shall be the judge of the admissibility of the evidence offered. Conformity to the formal legal rules of evidence shall not be necessary. All evidence shall be taken in the presence of the parties, except as provided under Section 13 and Section 15. The expense of witnesses, expert witnesses or reports for either side shall be paid by the party producing such witnesses and reports. Upon application by any party, the Arbitrator(s) shall have the sole discretion to permit any reasonable discovery allowable under the Minnesota Rules of Civil Procedure for the District Courts.

All witness lists (with expected testimony of each party) and exhibits shall be provided by the parties to NCDS and all other parties no later than fourteen (14) days prior to the scheduled hearing, or as directed by the Arbitrator(s). If a party presents any witness lists, exhibits, or witnesses fewer than fourteen (14) days prior to the scheduled hearing, the Arbitrator shall have the sole discretion regarding the resolution of Rules violation.

15. Evidence by Filing of Documents

The Arbitrator shall receive and consider documentary evidence. Documents to be considered by the Arbitrator may be submitted prior to the hearing or as directed by the Arbitrator provided a copy is simultaneously transmitted to all other parties and to NCDS for transmittal to the Arbitrator.

16. Closing of Hearings

The Arbitrator shall ask whether the parties have any further proofs to offer or witnesses to be heard. Upon receiving negative replies or when satisfied that the record is complete, the Arbitrator shall declare the hearings closed.

17. Waiver of Rules

Any party who proceeds with the arbitration after knowledge that any provision or requirement of these rules has not been complied with and who fails to state objections thereto in writing to NCDS shall be deemed to have waived the right to object.

18. Right to Object

Any party who becomes aware of a violation of these rules during the arbitration process may file a written request for an Arbitrator review of the violation with NCDS or raise the issue verbally at the hearing, if the issue occurs during the hearing. If NCDS receives a written request, it shall forward the request for review to the case Arbitrator(s) to investigate and take any necessary action to provide for the proper implementation of these rules. If the issue is raised at the hearing, the Arbitrator(s) shall address the issue then. Such a request must be made as soon as practicable or the violation shall be deemed waived.

19. Serving of Notice

Each party shall be deemed to have consented that any papers, notices or process necessary or proper for the initiation or continuation of an arbitration under these rules or for any court action in connection therewith; or for the entry of judgment on any award made under these rules may be served on such parties by regular mail addressed to the party or its attorney at the last known address or by personal service, in or outside Minnesota. The service requirements may be met by any written form of communication, including facsimile, letter, electronic mail, text message, or other written forms of electronic communication. It is the obligation of the filing party to submit the current address(es) and telephone number(s) of the other parties on the Demand Form.

20. Time of Award

The award shall be rendered promptly by the Arbitrator and, unless otherwise agreed by the parties, not later than thirty (30) days from the date of the closing of the hearing. The thirty (30) day timeframe may be extended by the Arbitrator for submission of post-hearing documents by the parties. If that is the case, the thirty (30) day timeframe will commence after the final post-hearing document submission has been received by the Arbitrator(s).

21. Scope of Award

The Arbitrator may make any award that is just and equitable and consistent with the Minnesota Uniform Arbitration Act, Chapter 572B. The Arbitrator, in the award, may allocate or assess the arbitration fees and expenses against any party. In the event that any administration fees or expenses are due to NCDS, the Arbitrator may provide for payment to NCDS in the Award. Each party shall bear its own attorney’s fees, except that the Arbitrator shall be allowed to award a prevailing party attorney’s fees if allowed by statute.

22. Form of Award

The award shall be in writing and shall be signed by the Arbitrator. It shall be executed in the manner required by law.

23. Award upon Settlement

If the parties settle their dispute during the course of the arbitration, the Arbitrator(s), upon request of the parties, may set forth the terms of the agreed settlement in an award.

24. Delivery of the Award to Parties

Parties shall accept as legal delivery of the award, the placing of the award or a true copy thereof, in the mail addressed to a party or its attorney at the last known address, personal service of the award or the filing of the award in any other manner that may be permitted by law.

25. Modification and/or Clarification

Within twenty (20) days of the date of mailing of the award, either party may request modification and/or clarification of the award. Application for modification and/or clarification must be sent to NCDS for transmittal to the Arbitrator and all other parties along with the proper administrative fee. A Request for Modification and/or Clarification must set forth the specific portion or portions of the award which are subject to the request. The Arbitrator is not empowered to redetermine the merits of any claim already decided, but may modify the Award to correct typographical errors or ministerial omissions or clarify the Award to eliminate internal inconsistencies or ambiguities. Written objections to modification and/or clarification must be delivered to NCDS for transmittal to the Arbitrator and simultaneously sent to all parties within ten (10) days of the application. The Arbitrator shall dispose of an application for modification and/or clarification within ten (10) days from receipt of an objection or the expiration of time to make objections, whichever is earlier.

26. Application to Court and Exclusion of Liability
  1. No judicial proceeding by a party relating to the subject matter of the arbitration shall be deemed a waiver of the party’s right to arbitrate.
  2. Neither NCDS, MAR nor any Arbitrator may be named as parties in a judicial proceeding based upon the arbitration.
  3. NCDS shall, upon the written request of a party furnish to such party, at the party’s expense, certified copies of any papers in NCDS’ possession that may be required in judicial proceedings relating to the arbitration.
  4. Unless the applicable law or the Agreement provides otherwise, the parties to these rules shall be deemed to have consented that judgment upon any arbitration award may be entered in any federal or state court having jurisdiction thereof.
  5. Neither NCDS, MAR nor any Arbitrator shall be liable to any party for any act or omission in connection with any arbitration conducted under these rules.
  6. These rules are not intended to apply to commission disputes. Any commission disputes between real estate brokers or agents who are members of the Minnesota Association of REALTORS® shall be resolved in the manner provided in Article 17 of the REALTORS® Code of Ethics.
27. Interpretation and Application of Rules

The Arbitrator shall interpret and apply these rules insofar as they relate to the Arbitrator’s powers and duties. All other rules shall be interpreted and applied by NCDS, as administrator. These rules shall be subject to the Minnesota Uniform Arbitration Act, Chapter 572B.

28. Collection of Arbitration Award.

Any award is payable by the parties directly to the claimant(s). NCDS can offer no direction on the collection of an arbitration award. Please consult legal counsel for information on how to enforce payment of an arbitration award.

29. Arbitration Fee Schedule

Fee Schedule for Purchase and Arbitration Agreements signed PRIOR TO August 1st, 2018. Click here

Fee Schedule for Purchase and Arbitration Agreements signed AFTER August 1st, 2018. Click here