What is Arbitration?

Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer to an arbitrator, by whose decision, the award, they agree to be bound legally.

Real Estate:

Commission dispute between two commercial realtors

Realtor X and realtor O shared a listing that eventually expired. Realtor X came up with an offer to buy the property without confirming a new listing agreement for unknown reasons. Meanwhile realtor O had relisted the property excluding realtor X.

Arbitration Decision: commission awarded to realtor O and noted as a professional, realtor O ought to have informed realtor X of intention to re-list and not exclude realtor X.
Commission dispute between commercial and residential realtors.

Realtor R has a builder backed financially by the City to buy residential development land. Realtor C has a land assembly and has been dealing directly with the City. Realtor R approaches realtor C with builder lead. Both realtors agreed to share the commission 50/50. The City directly buys the property on behalf of the builder. Realtor C claims the commission. Realtor R presents support documents from the builder.

Arbitration Decision: commission awarded 50/50.