What Happens After Filing an Ethics Complaint?

Real estate transactions can be stressful. They can be even more stressful when you believe a Realtor®’s actions were inappropriate. Sometimes, a conversation can clear up a misunderstanding. Other times, it’s not a simple misunderstanding, but a violation of the Realtor® Code of Ethics. Filing a complaint is one way to raise those concerns. But what happens after the paperwork is submitted? Understanding the procedures established by the National Association of Realtors® can help you know what to expect and what role you play in the process. 

First, Understand What the Code of Ethics Covers 

The NAR Code of Ethics sets professional standards for Realtors®. Among others, it includes duties related to honesty, protecting clients’ interests, treating others honestly and cooperating with other real estate professionals. 

Not every disagreement is an ethics violation. A buyer and seller may disagree about a contract, or a consumer may be unhappy with the outcome of a transaction. If you have a concern, consider discussing it with the real estate professional or the broker who oversees the agent. Sometimes, a direct conversation can resolve the issue. 

The Code applies only to members of the Realtor® organization. It is separate from state real estate licensing laws, which are enforced by state regulators. A local Realtor® association manages the process set by NAR; it does not decide whether someone broke the law. 

Step 1: The Complaint Is Filed 

Anyone — a consumer or another real estate professional — who believes a Realtor® has violated the Code can submit a written ethics complaint to the local Realtor® association where that person is a member. 

The complaint should explain what happened, including names, dates and relevant facts, and identify the Articles of the Code that are alleged to have been violated. Supporting documents, such as emails, text messages, advertisements or transaction records, may help explain the concern. 

Filing a complaint does not mean a violation has been proven. It starts a process for reviewing the allegations. If you are considering filing a complaint, contact the appropriate association early to learn about its forms, requirements and deadlines. 

Step 2: A Grievance Committee Reviews the Complaint 

Your completed paperwork should be submitted to the local association’s professional standards administrator. The administrator does not determine whether a violation occurred. Rather, the administrator refers the complaint to the association’s Grievance Committee for an initial review.  

The Grievance Committee does not conduct a hearing or decide whether the Realtor® actually violated the Code. Their only function is to determine whether the complaint should move forward to a hearing. The committee looks at the complaint to determine whether it was filed within the deadline and whether the allegations, if true, could support a violation of the Articles cited. It will review the information submitted and may request additional details when needed. 

The committee may decide that, based on the information presented, a complaint does not warrant a hearing. If that happens, the person who filed the complaint (known as the “complainant”) may appeal the dismissal by following the applicable procedures, which will be explained in the notification of dismissal. 

If the committee sends the complaint forward, that does not mean it has found the Realtor® committed an ethics violation. It means the allegations deserve further consideration through a formal hearing. 

Step 3: The Realtor® Is Notified 

If the complaint is referred for a hearing, the person named in the complaint (known as the “respondent”) is notified. The association provides them with a copy of the complaint and an opportunity to submit a written response. 

Under NAR procedures, the respondent generally has 15 days from notification to submit a reply. This step helps ensure that both sides understand the allegations and have an opportunity to explain their positions. 

The complaint and response, and any supporting exhibits, help define the issues that will be considered at the hearing. The response and exhibits are provided to the hearing panel and the opposing party prior to the hearing.  

Step 4: A Hearing Is Scheduled 

If a hearing is recommended, the professional standards administrator for the local association arranges an ethics hearing before a panel of trained Realtor® members. The association will provide information about the hearing procedures to all parties, including how the hearing will be conducted. Depending on what association hears the case, the hearing may take place in-person or remotely. 

Both parties should prepare carefully. This may include organizing documents, identifying witnesses and preparing a clear explanation of what happened. Parties should also review the applicable rules about submitting evidence, bringing witnesses and being represented by legal and/or Realtor® counsel. 

Step 5: Both Sides Present Their Cases 

At the hearing, the complainant explains the allegations and presents supporting evidence. The complainant has the burden of proving the violation through “clear, strong and convincing” evidence. In simple terms, the evidence must be strong enough to create a firm belief that the alleged violation occurred. The respondent has an opportunity to explain what happened and respond to the claims. Both sides may present relevant documents and testimony, and may question and cross-examine witnesses, subject to the hearing rules. 

The hearing panel listens to the evidence and considers the facts. Its members are expected to be fair and impartial. The goal is to determine what happened and whether those facts support a violation of the specific Articles named in the complaint. A clear timeline, organized records and specific examples can help the panel understand the issue.  

Step 6: The Panel Makes a Decision 

After considering the evidence, the parties and any witnesses are dismissed, and the hearing panel decides whether the respondent violated any of the Articles of the Code of Ethics cited by the complainant. 

If the panel finds no violation, the complaint is not sustained. If it finds a violation, the panel may recommend discipline. Possible disciplinary measures can include a reprimand, a fine, required education, probation or suspension of membership, depending on the circumstances.  

The association does not award money to anyone for damages through an ethics hearing. Anyone seeking compensation or resolution of a contract dispute may need to explore other options, such as mediation, arbitration or legal action. 

Step 7: The Parties Are Notified 

All parties will be notified in writing of the hearing panel’s decision. After the decision is issued, the parties should review it carefully as NAR procedures provide limited opportunities to appeal. 

Know Your Options 

Filing an ethics complaint can be an effective way to raise concerns about a Realtor®’s professional conduct. However, the process takes time, follows specific rules and focuses on whether the Code of Ethics was violated. 

Keep in mind that an ethics complaint is different from a complaint about a real estate license. If you believe a licensee violated Pennsylvania real estate law or licensing regulations, you may also need to contact the Pennsylvania State Real Estate Commission. 

Knowing where to turn — and what to expect — can help you take the next step with greater confidence.