When disagreements arise during a real estate transaction, many REALTORS® are unaware that there may be options available before pursuing a formal ethics complaint. Not every dispute requires a formal professional standards process. In many situations, concerns can be resolved early through working with a St. Louis REALTORS® ombudsman.

Our Ombudsman Program is designed to help address misunderstandings and communication breakdowns before they escalate into formal complaints. While the program is an important professional standards resource, it is also one of the most misunderstood and underutilized.

What the Ombudsman Program Is
The Ombudsman Program is an informal dispute resolution resource available through the Association. Ombudsmen are trained REALTOR® members who serve as neutral communicators to help parties discuss concerns and work toward resolution. Ombudsmen work by telephone or email to facilitate communication, conciliation, and/or dispute resolution in a real estate transaction.

Many situations referred to ombudsmen involve:

• Communication issues between agents;
• Consumer disputes with REALTORS®;
• Misunderstandings about transaction details;
• Earnest money dispute between buyers and sellers;
• Or, minor disputes that may be resolved through clarification or conversation

In most of these instances, concerns arise because expectations were not clearly communicated or because communication became increasingly strained and tense over time.

What the Ombudsman Program Is Not
A common misconception is that the Ombudsman Program can serve as a disciplinary process. This is false. 

Ombudsmen:

• Do not determine whether someone violated the Code of Ethics.
• Do not issue discipline or fines.
• Do not act as advocates for either party.
• Do not make binding decisions.

Instead, the ombudsman’s role is to foster mutual understanding and/or resolve disputes and concerns through constructive communication. If a matter cannot be resolved through the ombudsman, the complainant still retains the option to pursue the formal professional standards process.

When to Consider the Ombudsman Program
The Ombudsman Program is often most effective when concerns are identified early.

Examples of situations that may be well-suited for the program may include, but are not limited to:

• A cooperating broker is frustrated because their calls and emails have gone unanswered.
• An agent is concerned that the showing/property access instructions were not properly followed.
• There is frustration regarding showings, follow-up, or transaction communication.
• A consumer has questions about an agent’s actions and is seeking clarification.
• A misunderstanding arises regarding transaction timelines or expectations.

Many of these issues may not involve alleged violations of specific Articles within the REALTOR® Code of Ethics. Some disputes arise from confusion about transaction procedures or technical requirements, while others result from communication breakdowns. These types of concerns may be well-suited to the Ombudsman Program and can often be resolved more efficiently through conversation rather than a formal hearing. 

Confidentiality and Informal Resolution
The Ombudsman Program is intended to provide a confidential and informal setting for communication. Because the process is informal and voluntary, parties are often more comfortable having open discussions about the issue and potential resolution.

Resolving concerns early can:

• Preserve professional relationships.
• Save significant time compared to a formal complaint & hearing process.
• Encourage constructive communication between the parties.
• Help maintain focus on completing the transaction.

Not every situation can or should be resolved through an ombudsman, but many disputes benefit from an early conversation before positions become more polarized.

At its core, the Ombudsman Program reflects the REALTOR® commitment to professionalism within the industry and provides an opportunity to resolve concerns constructively before they develop into larger disputes.

Have questions about our Ombudsman Program or professional standards resources available through the St. Louis REALTORS®?
Your Association is here as a resource; don’t hesitate to reach out. Take a closer look at the St. Louis REALTORS® Ombudsman Program.