Transaction dilemma? We’re here to help!

From time to time it is inevitable that as a broker you will run across a dilemma during a transaction. For easy reference a ‘dilemma’ is a problem offering two possibilities, neither of which is practically acceptable. Some like to refer to this as ‘between a rock and a hard place.’ The NYBA Ethics Committee is an untapped resource that is here to help you find the best, most ethical outcome to your dilemma.

Your Ethics Committee is made up of a group of peers that will act as a sounding board to help you through problematic sales transactions before they make a wrong turn. The committee is comprised of  Art Kaplan of La Conner Yacht Sales, and Paul Groesbeck of Alexander Marine. They meet as needed to discuss current or on-going ethics issues within the Association, as well as review and respond to member’s formal complaints.

The Ethics Committee wants you to know that they are here to help with guidance at any time. Please feel free to contact them when needed.

CONSUMER TO BROKER COMPLAINTS

Process for public complaints brought against a NYBA Broker:

• Complaints from the public concerning any NYBA member broker will only be initiated by a written submission from the complainant to the NYBA office, clearly denoting the nature of the complaint and the desired resolution or remedy. The NYBA office will then request written response from the Broker. Failure by the Broker to respond within 30 days of the request and/or to abide by the procedures noted herein may result in suspension of their NYBA membership privileges, with notification of such suspension to the NYBA membership. If the Broker is CPYB certified, notification will also be forwarded to the CPYB Certification Advisory Council.
• The NYBA Office will then forward all related correspondence to the NYBA Ethics Committee, maintaining records of all such correspondence in the NYBA files.
• The NYBA Ethics Committee will review the case, in order to render a decision and/or recommendation on the matter within four weeks of the original complaint date. The committee will forward, in writing, copies of its final decision and/or recommendation to the complainant, the Broker and the NYBA office.
• If the Broker is found to have been in violation of the NYBA Code of Ethics, the decision will be forwarded to the Ethics Committee and to the member brokerage firm principal with whom the broker is employed or contracted. The principal will be asked to respond to the NYBA Ethics Committee, acknowledging the problem and defining the actions they will take to ensure that no further such violation occurs. The decision will be kept on file in the NYBA office and, if the broker is CPYB certified, forwarded to the CPYB Certification Advisory Council.
• If the same Broker is found guilty of a second violation of the Code of Ethics, the Broker, and their employing brokerage will be suspended from NYBA membership for one year, after which membership reinstatement will be considered upon request of the brokerage. The Ethics Committee decision regarding the suspension may be published in NYBA’s newsletter and/or referred to the CPYB Certification Advisory Council.. A record of all such actions will be maintained by the NYBA office.
• If the same Broker is found guilty of any third violation of the Code of Ethics the Broker will be permanently terminated from membership in NYBA. The broker’s employing member firm will also be reviewed by the Ethics Committee for possible suspension or termination. The loss of such memberships may be reported in the NYBA Newsletter.

BROKER TO BROKER COMPLAINTS

Binding Arbitration Procedure: When a dispute arises between two brokers, the brokers may choose to submit their case to binding arbitration as follows:

• Each Broker shall select one member at large from NYBA; these two members shall together agree on one other member. These three brokers shall comprise the Binding Arbitration Committee for the dispute. Brokers are advised to select their arbitrator based on the person’s knowledge and experience in the business.
• Each Broker shall submit a written statement of the case to the members of the Binding Arbitration Committee.
• Each Broker shall then appear in person for a hearing before the Binding Arbitration Committee
• The Binding Arbitration Committee shall render its decision, which shall be binding on both parties. A written report of their decisions shall be sent to the NYBA Executive Committee and to the chairman of the Ethics Committee, and to both parties. In addition, if either broker is CPYB certified, the report will be sent to the CPYB Certification Advisory Council to take any action they deem is appropriate. The Ethics Committee has the option of publishing the decision in the NYBA newsletter.