Not every disagreement needs to escalate, and not every dispute needs to land in court.
In answer to an increasingly contentious and litigious world, the REALTOR® organization has a framework that began more than 25 years ago to help resolve real estate misunderstandings and improve communication between parties.
Mediation is the National Association of REALTORS®’ preferred method of dispute resolution, and its successful mediation, ombuds and arbitration programs have inspired other associations to try and replicate them.
On May 15, NAR conducted its first international mediation training in Athens for its Greek bilateral partner the Hellenic Association of Certified Real Estate Experts (EPPA).
The response from the room of 50 attendees—a majority of whom are International REALTOR® and EPPA members—was enthusiastic, for two reasons.
“Everybody in Greece [has lost] a friendship because of misunderstanding,” says Nikos Manomenidis, an honorary president of EPPA. “If you don’t have common rules, you are losing friends because of a conflict in the business.”
The second reason, he says, is the prospect of more international clients. To gain clients, you need to gain their trust.
“To trust that if there is any conflict, there is a trusted procedure to follow; they like [that],” Manomenidis says.
The four-hour training explored how cooperation is rooted in NAR’s Code of Ethics, how structured dispute resolution can remove barriers to cooperation, and how NAR’s process works.
NAR’s Conflict Resolution Options
NAR has a process for three different forms of conflict resolution: using an ombudsman, a mediator or an arbitrator.
At a glance, they differ by cost, time, who controls the outcome and whether the meetings are held via phone, virtually or in person. Each utilizes a neutral third party.
Ombuds are members or association staff who facilitate communication between disputing parties. It’s a no-cost, voluntary option for all parties and typically conducted over the phone.
The mediator program is very similar, but more formal. Since 2000, NAR has hosted a 20-hour mediation training annually in Chicago, led by one of the country’s top mediation coaches. In conflicts, mediators facilitate discussions virtually or in person. All local REALTOR® associations must offer mediation as an alternative to otherwise arbitrable disputes.
Meanwhile, the arbitration process—a method used to avoid lawsuits—carries a moderate cost and typically takes three to six months. Notably, arbitrators render decisions, and parties are bound to those decisions.
Piquing a Greek Leader’s Interest
Manomenidis got a taste of this framework last November. NAR hosted a Mediation Ombuds Information Exchange at its NXT conference, where those interested in ombuds and mediation shared stories and best practices and asked questions.
Diane Mosley, NAR’s director of training and policy resources, co-facilitated that information exchange and recalls meeting Manomenidis.
“He said, ‘Oh, you have to come to Greece!’” Mosley says.
Manomenidis, who has worked in both residential and commercial markets and currently focuses on consulting and appraisal, is a past president of EPPA and served on NAR’s 2015 Board of Directors.
He’s has been working to bring cooperation to Greece’s—and the larger continent’s—real estate culture. He explained that because exclusive listings are uncommon in Greece, agents are reticent to cooperate.
“So, it is like in the United States [many years ago]: Wild West. We are Wild East,” he says.
In 2006 he tried, unsuccessfully, to establish an MLS in Greece.
“There are many things we have to do. One is to have the source of truth—a database where the listings are accurately listed there. [Two] is to have the Code of the Ethics in practice— a common code. And the third is ... we have to find a way to support the application of the Code of Ethics.”
Manomenidis had been contemplating all these ideas when he came upon the information exchange at NXT. The idea that the framework was created by REALTOR® members for REALTORS®, and that it’s constantly evolving, resonated with him.
“Every year, almost, they are discussing the rules; they adopt new situations [as] things change in the market ... so it is a living organization,” he says.
Six months later, and EPPA flew Mosley to Greece, to present a truncated version of NAR’s 20-hour mediator training during EPPA’s May conference and gala. Manomenidis stood at the ready to make sure nothing got lost in translation.
It’s the latest example of how NAR works with its bilateral partners to raise real estate standards worldwide.
“Starting with arbitration, then mediation and then the ombuds program, we have seen an evolution and that only benefits our REALTOR® members—regardless of where they are in the world—to more efficiently and effectively resolve disputes to get them back to doing what they should be doing,” Mosley says.
