Facts:

Team leader continues to increase the size of her real estate team. As the team grows in size, so too does the number of disputes between the team leader and various team members. As such, the team leader wants to execute an agreement with all team members governing how such disputes will be addressed.

Issue:

Can the team leader and team members execute an agreement governing how disputes will be resolved and, if so, what options are available?

Answer:

See discussion.

Discussion:

Team leaders are encouraged to enter into agreements with each team member documenting the nature of their relationship. These agreements can and should include a dispute resolution provision.

To assist team leaders and team members in crafting such an agreement, Arizona REALTORS® has developed a Team Toolkit that includes a comprehensive list of provisions that the parties can use to draft a Team Leader / Member Agreement. Among the provisions provided is a dispute resolution provision that outlines various options (excerpt below).

In the event a dispute arises, TM (Team Member) and TL (Team Leader) agree that Broker will act as a mediator to resolve any and all disputes. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall be:

Submitted to Broker who will decide the matter in Broker’s sole discretion

Submitted for binding arbitration with an agreed upon third-party arbitrator

Submitted for binding arbitration with the Arizona Association of REALTORS® if the dispute involves entitlement to a commission or compensation

Other _____________________________________________________________________________________________