The Sacramento Association of REALTORS® (SAR) provides various services to assist their Members, their clients and the public in the resolution of disputes. By virtue of becoming and remaining a Member of the Sacramento Association of REALTORS®, Members agree to abide by the Association bylaws and the REALTOR® Code of Ethics.

The dispute resolution system (DRS) of the National Association of REALTORS® helps settle differences between sellers and buyers, and between consumers and real estate practitioners, through mediation or arbitration rather than costly and time-consuming litigation.

DRS is a means of resolving disputes out of court, such as by mediation and arbitration. Working toward dispute resolution through mediation and arbitration can improve understanding between real estate professionals and their clients, and provide an alternative to burdensome and costly legal procedures.

Dispute resolution programs are important today as parties and the court system alike try to take cases out of the traditional legal system and solve disputes quickly and cost-efficiently. The DRS is a serious effort to design workable and fair alternatives to traditional civil litigation.

The program is not used to settle differences between REALTORS® because NAR’s Code of Ethics already includes procedures for handling such disputes.

In mediation, the parties work to settle their disputes with the help of an impartial mediator. Parties do not forfeit their legal rights to arbitrate or litigate the dispute if mediation is unsuccessful. If the mediation is successful, the parties sign a legally binding contract agreeing to the terms of the resolution.

If the mediation is unsuccessful, sellers, buyers or real estate professionals may then proceed with arbitration or litigation. In arbitration, a third party or parties are usually given the authority to issue a binding decision.

Dispute resolution programs are faster and less expensive than litigation, and they discourage frivolous claims.