An ethics complaint?
Against me?
What happens next?

You’ve just opened a piece of certified mail, and the first words out of your mouth are ... well, we can’t print the first words out of your mouth because this letter names you as a respondent to an ethics complaint.
Don’t panic. Here’s what you can expect the rest of the way. (Note: These steps reflect procedures for TAR, which handles professional standards for more than 56% of all Texas REALTORS®. Procedures may vary, within NAR guidelines, if your local association handles your professional standards.)

The envelope you received will contain the complaint itself along with any supporting documents, the complainant’s name, the list of articles from the Code of Ethics you have been alleged to have violated, the address of the transaction, and whether the complaint has been filed in court and/or with the Texas Real Estate Commission. A copy of this and all future correspondence will also be sent to your sponsoring broker. This is not the time to respond to the complaint, but you can gather documents and notes about the transaction.

The complaint will be forwarded to a grievance tribunal, which determines whether the complaint would constitute a possible violation if the facts were true. The tribunal can forward the complaint as is to a hearing panel, amend and forward it, or dismiss it. Both parties will be notified of the tribunal’s decision by certified mail.

If the complaint is dismissed, you’re not totally out of the woods yet. The complainant has a 20-day window to appeal the tribunal’s decision.

Should the tribunal forward the complaint to a hearing panel, your notice will instruct you as to how to respond to the complaint. A copy of your response will be sent to the complainant.

You will also receive a list of names of members of the Professional Standards Committee from which a hearing panel will be chosen. You will have an opportunity to “challenge” the appointment of any of those members to the panel.

Finally, your packet will contain information about mediation. Mediation can help resolve the issue at no cost to either party. If mediation fails, the complaint will move to the hearing-panel stage.

You will receive at least 21 days advance notice of the hearing date and location and the names of the panel members. If you intend to have counsel or witnesses present, you must notify TAR and the other parties at least 15 days prior to the hearing.

A hearing officer presides over the hearing, making sure correct procedures are followed. The entire proceedings are audio taped.

After the complainant tells his side of the story and presents any witnesses and evidence, you will have the opportunity to do likewise. You can ask questions directly of the complainant, and he may directly question you. The hearing panel may also question both parties.

The hearing will adjourn, and the panelists will go into executive session to reach their decision. Don’t wait around to learn the outcome. You’ll be notified later by—you guessed it—certified mail.

The letter will list the hearing panel’s findings of fact as well as a conclusion about whether you violated the alleged articles of the Code of Ethics. If you are found to have violated the code, you will be charged a $500 administrative fee in addition to any other penalties assessed by the panel. Other penalties may include mandatory education, probation, suspension, or expulsion from the association, and suspension or termination of MLS privileges.

You may have one other option to avoid the
entire process. If a complainant takes advantage
of TAR’s Ombudsman Program (all are offered this choice), you will receive a call from a REALTOR®
who will try to resolve the issue informally by speaking with both parties. Sometimes, simply opening up the lines of communication can solve a problem before it ever turns into a formal complaint.

View the Code of Ethics in the Prof. Standards section of TexasRealtors.com.

Send questions about ethics to texasrealtor@texasrealtors.com. Not all questions received can be answered.

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