Earnest Money Arbitration

             The Earnest Money Arbitration program offered through CABR was created by the joint  Cincinnati Area Board of Realtors^® and Cincinnati Bar Association Realtor®/Lawyer Committee.  The purpose of the program is to provide a public service for buyers and sellers of real estate who find themselves in a dispute over who is entitled to receive the earnest money that has been deposited with a broker in regard to a Contract to Purchase that does not close.  The program has been in effect since 1990. 

             The service is provided at no cost to clients and customers of CABR members as an alternative to small claims court or other legal proceedings.  All parties to the purchase contract must agree to participate in the arbitration and to be bound by the hearing panel's decision.  They must sign a release/agreement indicating so.  No litigation or other dispute resolution may be pending at the time of filing.

             Either the listing agent, selling agent, buyer or seller can contact the Board for the forms and manual.  The parties are required to sign the agreement to arbitrate and are given the opportunity on the form to write down their side of the dispute.  The brokers of both the listing and selling firms must also sign the form and agree to deposit the earnest money with the Board prior to the hearing for disbursement in accordance with the findings.

             The hearings are held at the Board office and the hearing panel is comprised of one REALTOR® from the Arbitration Committee and two attorneys from the joint REALTOR®/Lawyer Committee.  The parties have the right to bring witness, affidavits and legal counsel to the hearing.

             The decision is made promptly and the parties are notified of the outcome within a few days.  At the same time notification of the award is mailed, the prevailing party is also mailed a check for the amount disputed.

             The program is offered free of charge to REALTOR® Members, their clients and their customers.

              If you would like to participate in, or if you have a client or customer that you feel could benefit from, the Earnest Money Arbitration program, send and email requesting information to chenninger@cabr.org.  

              Questions can be directed to Cindy Henninger, Director of Professional Services, at the Cincinnati Area Board of Realtors^®.