Rules & Regs 15) Procedures For MLS Rules Hearings 16) Arbitration

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15.  PROCEDURES FOR MLS RULES HEARINGS

All MLS rules hearings shall be processed in accordance with the California Code of Ethics and
Arbitration Manual as from time to time amended which is hereby incorporated by reference. Failure
to abide by the procedures of the California Code of Ethics and Arbitration Manual shall be a
violation of these MLS rules.

16. ARBITRATION

16.1 Mandatory Arbitration

By becoming and remaining a participant or subscriber in the MLS, each participant and subscriber
agrees to submit disputes arising out of the real estate business which also arises out of, or is in
conjunction with, any listing filed with the MLS or any appraisal, to binding arbitration with any other
participant or subscriber of this MLS, or participants or subscribers of any other MLS who are
authorized to have access to this MLS under Section 6 of these rules. Such arbitrations shall be
governed by the California Code of Ethics and Arbitration Manual as from time to time amended
which is hereby incorporated by reference. This shall be deemed an arbitration agreement within the
meaning of Part 3, Title 9 of the California Code of Civil Procedure. Failure to submit to arbitration
and abide by the arbitration award, including but not limited to timely payment of the arbitration
award as provided herein shall be a violation of these MLS rules and subjects Participants and
Subscribers to possible suspension from the MLS and/or other penalties.

16.2 Other Arbitration Agreements

Notwithstanding any other provision of these rules, if any participant or subscriber enters into an
agreement (either before or after a dispute arises) with another participant or subscriber to arbitrate a
dispute utilizing non-REALTOR® Association facilities, such persons are not bound to arbitrate the
dispute covered by such agreement under these rules utilizing REALTOR® association facilities.

16.3 Arbitration Between REALTOR® Association Members

Notwithstanding any other provision of these rules,

a. If all disputants are members of the same Association of REALTORS®, they shall arbitrate
at that Association of REALTORS® in accordance with its rules.

b. If the disputants are members of different Associations of REALTORS®, they shall
arbitrate in accordance with any applicable regional or shared professional standards
agreement. In the absence of such an agreement, the disputants remain obligated to
arbitrate at the California Association of REALTORS® (“C.A.R.”) in accordance with the
C.A.R. Interboard Arbitration Rules.

16.4 Arbitration Involving Non-REALTOR® Association MLS Subscribers

Notwithstanding any other provision of these rules, if one or more disputants are non-
REALTOR® association members but both disputants are subscribers to the MLS, the MLS
will arbitrate in accordance with the California Code of Ethics and Arbitration Manual.

16.5 Same Firm

Arbitration between persons from the same firm shall not be available and is not mandated by these
rules unless covered by arbitration rules relating to the obligations of REALTOR® association
members to arbitrate.

16.6 Timing

For purposes of this Section 16, the duty to arbitrate shall be determined when facts giving rise to the
dispute occurred. Therefore, a participant or subscriber shall have a duty to arbitrate if the person was
an MLS participant or subscriber when facts giving rise to the dispute occurred. Termination of MLS
participation or subscription or resignation or termination of membership of a REALTOR®
association shall not relieve the arbitration duty under this section for disputes that arose when the
person was an MLS participant or subscriber or member of a REALTOR® association. Requests for
arbitration must be filed within one hundred and eighty (180) days after the closing of the transaction,
if any, or after the facts constituting the matter could have been known in the exercise of reasonable
diligence, whichever is later.

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