Ethics Q&A

Just what is an ombudsman, anyway?

When a person calls the Texas Association of REALTORS® to complain about a member, one option discussed is the association’s ombudsman program. This program attempts to resolve problems with the assistance of an ombudsman (one of about a dozen volunteer REALTOR® members) who listens to the complaint and works on a solution agreeable to the person. Successful experiences with the ombudsman program give satisfaction to those who called to complain and spare the REALTOR® the possibility of defending a formal ethics complaint. More than half of those who use the ombudsman program resolve the issue through the program.

What does the ombudsman do?

Think of an ombudsman as an informal telephone mediator for when the lines of communication have broken down. The ombudsman calls the person, listens to the complaint, ascertains the person’s desired outcome, and explains the possible avenues to reach that outcome. If instructed to do so by the person with the complaint, the ombudsman will call the REALTOR® or the REALTOR®’s broker to relay the person’s concerns and attempt to resolve the issue.

Does the ombudsman give his opinion as to whether a violation of the Code of Ethics occurred?

No. However, the ombudsman may explain the ethics-complaint process to the caller.

What are the ombudsman’s qualifications?

All ombudsmen must have served on a professional standards committee or have similar knowledge and experience. Ombudsmen also go through a training program.

Can a REALTOR® use an ombudsman to complain
about a member of the public?

No.

Can an ombudsman be used in a dispute
between two REALTORS®?

Yes. A REALTOR® may make use of the ombudsman program when he feels another REALTOR® has acted unethically or when disputing a commission.


What happens if the ombudsman can’t facilitate
a solution?

The person with the complaint may choose to file a formal ethics complaint or pursue the matter through any other available means (e.g., a complaint with TREC or a lawsuit). The person may also decide to drop the matter.


Are there types of complaints an ombudsman won’t try to resolve?

If the ombudsman determines a “violation of
the public trust” has occurred (defined by NAR
as “demonstrated misappropriation of client or
customer funds or property, willful discrimination, or fraud resulting in economic harm”), the ombudsman will stop the process and advise the person of his right to pursue a formal ethics complaint, a complaint with any appropriate regulatory body, litigation, or any other available remedy.

What are the most common types of problems resolved by ombudsmen?

The most common situation involves a seller who wants to be released from a listing agreement, followed by commission and contractual disputes.

Why would a member of the public use the ombudsman program rather than file a formal complaint?

That person may just want someone who will listen to his complaint or help resolve a misunderstanding without going through a formal hearing process.

Why should a REALTOR® try to resolve the issue with the ombudsman program?

Settling a problem through this means can save the time it would have taken defending an ethics complaint, avoid any penalties had a violation been found by a hearing panel, and may even repair a client relationship that has become damaged.

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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