Why is a name so important? First of all, the term
"REALTOR"
is a collective membership mark registered
with the
U.S. Patent Office, and designates only those real
estate
brokers and agents who are members of the national
association.
Members of the national, state, and local REALTOR organizations
display the Realtor identification--the stylized "R"-or the name Realtor in
their signs, advertising and business cards.
Most importantly, if you use a Realtor, you can be assured that you are
dealing with a "REAL ESTATE PROFESSIONAL", with personal
integrity as well as competency in real estate matters.
Real Estate brokers and agents who wish to be Realtors must first be
accepted through their local Realtor boards. Acceptance for membership
is based upon good business character and demonstration of ability in
real estate maters. Before attaining membership, the real estate broker or
agent pledges to abide by the association's nationally recognized CODE
OF ETHICS.
This code demands high professional conduct. It is a three-part document
dealing with Realtors' relations with the public, the client, and fellow
Realtors. The essence of the Code is the Golden Rule, contained in the
code's preamble: "Whatsoever ye would that men should do to you, do ye
even so to them."
The Code is enforced through professional standards committees which
are maintained by local boards. These, in effect, are grievance committees
charged with the responsibility of hearing complaints and arbitrating
disputes.
The public, as well as members of the board, can bring complaints before
the committee. Disciplinary action can consist of suspension or expulsion
from membership. A real estate broker or agent who is not a Realtor is
governed only by state license laws.
Because Realtors have worked to unify and standardize their business
practices
since 1908, the term "REALTOR" has come to
connote
competence, fair dealing and integrity in business
relations.
In addition to promoting real estate information and
education, the association is involved in protecting the rights of all private
property owners. It is the goal of the association to make home ownership
affordable and accessible.
The COLORADO ASSOCIATION OF REALTORS reminds you that
Realtors are people in the real estate business who continues to be
affiliated with well-organized real estate activities and business practices.
Realtors have the knowledge generated by over 75 YEARS of ETHICAL
STANDARDS, EDUCATION, EXPERIENCE AND RESEARCH.
Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS ®
Effective January 1, 2009
Duties to Clients and Customers
Duties to the Public
Duties to REALTORS®
Where the word REALTORS® is used in this Code and Preamble, it shall be deemed to include REALTOR-ASSOCIATE®s.
While
the Code of Ethics establishes obligations that may be higher than
those mandated by law, in any instance where the Code of Ethics and the
law conflict, the obligations of the law must take precedence.
Preamble
Under
all is the land. Upon its wise utilization and widely allocated
ownership depend the survival and growth of free institutions and of
our civilization. REALTORS® should
recognize that the interests of the nation and its citizens require the
highest and best use of the land and the widest distribution of land
ownership. They require the creation of adequate housing, the building
of functioning cities, the development of productive industries and
farms, and the preservation of a healthful environment.
Such
interests impose obligations beyond those of ordinary commerce. They
impose grave social responsibility and a patriotic duty to which
REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously
strive to become and remain informed on issues affecting real estate
and, as knowledgeable professionals, they willingly share the fruit of
their experience and study with others. They identify and take steps,
through enforcement of this Code of Ethics and by assisting appropriate
regulatory bodies, to eliminate practices which may damage the public
or which might discredit or bring dishonor to the real estate
profession. REALTORS® having
direct personal knowledge of conduct that may violate the Code of
Ethics involving misappropriation of client or customer funds or
property, willful discrimination, or fraud resulting in substantial
economic harm, bring such matters to the attention of the appropriate
Board or Association of REALTORS®. (Amended 1/00)
Realizing
that cooperation with other real estate professionals promotes the best
interests of those who utilize their services, REALTORS® urge
exclusive representation of clients; do not attempt to gain any unfair
advantage over their competitors; and they refrain from making
unsolicited comments about other practitioners. In instances where
their opinion is sought, or where REALTORS®believe
that comment is necessary, their opinion is offered in an objective,
professional manner, uninfluenced by any personal motivation or
potential advantage or gain.
The term REALTOR® has
come to connote competency, fairness, and high integrity resulting from
adherence to a lofty ideal of moral conduct in business relations. No
inducement of profit and no instruction from clients ever can justify
departure from this ideal.
In the interpretation of this obligation, REALTORS® can
take no safer guide than that which has been handed down through the
centuries, embodied in the Golden Rule, “Whatsoever ye would that
others should do to you, do ye even so to them.”
Accepting this standard as their own, REALTORS® pledge
to observe its spirit in all of their activities whether conducted
personally, through associates or others, or via technological means,
and to conduct their business in accordance with the tenets set forth
below. (Amended 1/07)
Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge
themselves to protect and promote the interests of their client. This
obligation to the client is primary, but it does not relieve REALTORS® of
their obligation to treat all parties honestly. When serving a buyer,
seller, landlord, tenant or other party in a non-agency capacity,
REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)
The
duties imposed by the Code of Ethics encompass all real estate-related
activities and transactions whether conducted in person,
electronically, or through any other means.
The duties the Code of Ethics imposes are applicable whether REALTORS®are
acting as agents or in legally recognized non-agency capacities except
that any duty imposed exclusively on agents by law or regulation shall
not be imposed by this Code of Ethics on REALTORS® acting in non-agency capacities.
As used in this Code of Ethics, “client” means the person(s) or entity(ies) with whom a REALTOR® or a REALTOR®’s
firm has an agency or legally recognized non-agency relationship;
“customer” means a party to a real estate transaction who
receives information, services, or benefits but has no contractual
relationship with the REALTOR® or the REALTOR®’s
firm; “prospect” means a purchaser, seller, tenant, or
landlord who is not subject to a representation relationship with the
REALTOR® or REALTOR®’s
firm; “agent” means a real estate licensee (including
brokers and sales associates) acting in an agency relationship as
defined by state law or regulation; and “broker” means a
real estate licensee (including brokers and sales associates) acting as
an agent or in a legally recognized non-agency capacity. (Adopted 1/95,
Amended 1/07)
When acting as listing brokers, REALTORS® shall
continue to submit to the seller/landlord all offers and counter-offers
until closing or execution of a lease unless the seller/landlord has
waived this obligation in writing. REALTORS®shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall
recommend that sellers/landlords obtain the advice of legal counsel
prior to acceptance of a subsequent offer except where the acceptance
is contingent on the termination of the pre-existing purchase contract
or lease. (Amended 1/93)
REALTORS® ,
acting as agents or brokers of buyers/tenants, shall submit to
buyers/tenants all offers and counter-offers until acceptance but have
no obligation to continue to show properties to their clients after an
offer has been accepted unless otherwise agreed in writing. REALTORS®,
acting as agents or brokers of buyers/tenants, shall recommend that
buyers/tenants obtain the advice of legal counsel if there is a
question as to whether a pre-existing contract has been terminated.
(Adopted 1/93, Amended 1/99)
The obligation of REALTORS® to
preserve confidential information (as defined by state law) provided by
their clients in the course of any agency relationship or non-agency
relationship recognized by law continues after termination of agency
relationships or any non-agency relationships recognized by law.
REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:
Information
concerning latent material defects is not considered confidential
information under this Code of Ethics. (Adopted 1/93, Amended 1/01)
When entering into listing contracts, REALTORS® must advise sellers/landlords of:
When entering into buyer/tenant agreements, REALTORS® must advise potential clients of:
REALTORS®,
in response to inquiries from buyers or cooperating brokers shall, with
the sellers’ approval, disclose the existence of offers on the
property. Where disclosure is authorized, REALTORS® shall also
disclose, if asked, whether offers were obtained by the listing
licensee, another licensee in the listing firm, or by a cooperating
broker. (Adopted 1/03, Amended 1/09))
Article 2
REALTORS® shall
avoid exaggeration, misrepresentation, or concealment of pertinent
facts relating to the property or the transaction. REALTORS® shall
not, however, be obligated to discover latent defects in the property,
to advise on matters outside the scope of their real estate license, or
to disclose facts which are confidential under the scope of agency or
non-agency relationships as defined by state law. (Amended 1/00)
REALTORS® shall
only be obligated to discover and disclose adverse factors reasonably
apparent to someone with expertise in those areas required by their
real estate licensing authority. Article 2 does not impose upon the
REALTOR® the obligation of expertise in other professional or technical disciplines. (Amended 1/96)
Factors
defined as “non-material” by law or regulation or which are
expressly referenced in law or regulation as not being subject to
disclosure are considered not “pertinent” for purposes of
Article 2. (Adopted 1/93)
Article 3
REALTORS® shall
cooperate with other brokers except when cooperation is not in the
client’s best interest. The obligation to cooperate does not
include the obligation to share commissions, fees, or to otherwise
compensate another broker. (Amended 1/95)
REALTORS®,
acting as exclusive agents or brokers of sellers/ landlords, establish
the terms and conditions of offers to cooperate. Unless expressly
indicated in offers to cooperate, cooperating brokers may not assume
that the offer of cooperation includes an offer of compensation. Terms
of compensation, if any, shall be ascertained by cooperating brokers
before beginning efforts to accept the offer of cooperation. (Amended
1/99)
REALTORS®,
acting as listing brokers, have an affirmative obligation to disclose
the existence of dual or variable rate commission arrangements (i.e.,
listings where one amount of commission is payable if the listing
broker’s firm is the procuring cause of sale/lease and a
different amount of commission is payable if the sale/lease results
through the efforts of the seller/ landlord or a cooperating broker).
The listing broker shall, as soon as practical, disclose the existence
of such arrangements to potential cooperating brokers and shall, in
response to inquiries from cooperating brokers, disclose the
differential that would result in a cooperative transaction or in a
sale/lease that results through the efforts of the seller/landlord. If
the cooperating broker is a buyer/tenant representative, the
buyer/tenant representative must disclose such information to their
client before the client makes an offer to purchase or lease. (Amended
1/02)
REALTORS® shall not misrepresent the availability of access to show or inspect a listed property. (Amended 11/87)
Article 4
REALTORS® shall
not acquire an interest in or buy or present offers from themselves,
any member of their immediate families, their firms or any member
thereof, or any entities in which they have any ownership interest, any
real property without making their true position known to the owner or
the owner’s agent or broker. In selling property they own, or in
which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)
Article 5
REALTORS® shall
not undertake to provide professional services concerning a property or
its value where they have a present or contemplated interest unless
such interest is specifically disclosed to all affected parties.
Article 6
REALTORS® shall
not accept any commission, rebate, or profit on expenditures made for
their client, without the client’s knowledge and consent.
When
recommending real estate products or services (e.g., homeowner’s
insurance, warranty programs, mortgage financing, title insurance,
etc.), REALTORS® shall
disclose to the client or customer to whom the recommendation is made
any financial benefits or fees, other than real estate referral fees,
the REALTOR® or REALTOR®’s firm may receive as a direct result of such recommendation. (Amended 1/99)
REALTORS® shall
not recommend or suggest to a client or a customer the use of services
of another organization or business entity in which they have a direct
interest without disclosing such interest at the time of the
recommendation or suggestion. (Amended 5/88)
Article 7
In a transaction, REALTORS® shall
not accept compensation from more than one party, even if permitted by
law, without disclosure to all parties and the informed consent of the
REALTOR®’s client or clients. (Amended 1/93)
Article 8
REALTORS® shall
keep in a special account in an appropriate financial institution,
separated from their own funds, monies coming into their possession in
trust for other persons, such as escrows, trust funds, clients’
monies, and other like items.
Article 9
REALTORS®,
for the protection of all parties, shall assure whenever possible that
all agreements related to real estate transactions including, but not
limited to, listing and representation agreements, purchase contracts,
and leases are in writing in clear and understandable language
expressing the specific terms, conditions, obligations and commitments
of the parties. A copy of each agreement shall be furnished to each
party to such agreements upon their signing or initialing. (Amended
1/04)
When
assisting or enabling a client or customer in establishing a
contractual relationship (e.g., listing and representation agreements,
purchase agreements, leases, etc.) electronically, REALTORS® shall
make reasonable efforts to explain the nature and disclose the specific
terms of the contractual relationship being established prior to it
being agreed to by a contracting party. (Adopted 1/07)
Duties to the Public
Article 10
REALTORS® shall
not deny equal professional services to any person for reasons of race,
color, religion, sex, handicap, familial status, or national origin.
REALTORS®shall
not be parties to any plan or agreement to discriminate against a
person or persons on the basis of race, color, religion, sex, handicap,
familial status, or national origin. (Amended 1/90)
REALTORS®,
in their real estate employment practices, shall not discriminate
against any person or persons on the basis of race, color, religion,
sex, handicap, familial status, or national origin. (Amended 1/00)
When involved in the sale or lease of a residence, REALTORS® shall
not volunteer information regarding the racial, religious or ethnic
composition of any neighborhood nor shall they engage in any activity
which may result in panic selling, however, REALTORS® may provide other demographic information. (Adopted 1/94, Amended 1/06)
When not involved in the sale or lease of a residence, REALTORS® may
provide demographic information related to a property, transaction or
professional assignment to a party if such demographic information is
(a) deemed by the REALTOR® to
be needed to assist with or complete, in a manner consistent with
Article 10, a real estate transaction or professional assignment and
(b) is obtained or derived from a recognized, reliable, independent,
and impartial source. The source of such information and any additions,
deletions, modifications, interpretations, or other changes shall be
disclosed in reasonable detail. (Adopted 1/05, Renumbered 1/06)
REALTORS® shall
not print, display or circulate any statement or advertisement with
respect to selling or renting of a property that indicates any
preference, limitations or discrimination based on race, color,
religion, sex, handicap, familial status, or national origin. (Adopted
1/94, Renumbered 1/05 and 1/06)
As
used in Article 10 “real estate employment practices”
relates to employees and independent contractors providing real
estate-related services and the administrative and clerical staff
directly supporting those individuals. (Adopted 1/00, Renumbered 1/05)
Article 11
The services which REALTORS® provide
to their clients and customers shall conform to the standards of
practice and competence which are reasonably expected in the specific
real estate disciplines in which they engage; specifically, residential
real estate brokerage, real property management, commercial and
industrial real estate brokerage, real estate appraisal, real estate
counseling, real estate syndication, real estate auction, and
international real estate.
REALTORS® shall
not undertake to provide specialized professional services concerning a
type of property or service that is outside their field of competence
unless they engage the assistance of one who is competent on such types
of property or service, or unless the facts are fully disclosed to the
client. Any persons engaged to provide such assistance shall be so
identified to the client and their contribution to the assignment
should be set forth. (Amended 1/95)
When REALTORS® prepare
opinions of real property value or price, other than in pursuit of a
listing or to assist a potential purchaser in formulating a purchase
offer, such opinions shall include the following:
The
obligations of the Code of Ethics in respect of real estate disciplines
other than appraisal shall be interpreted and applied in accordance
with the standards of competence and practice which clients and the
public reasonably require to protect their rights and interests
considering the complexity of the transaction, the availability of
expert assistance, and, where the REALTOR® is an agent or subagent, the obligations of a fiduciary. (Adopted 1/95)
When REALTORS® provide
consultive services to clients which involve advice or counsel for a
fee (not a commission), such advice shall be rendered in an objective
manner and the fee shall not be contingent on the substance of the
advice or counsel given. If brokerage or transaction services are to be
provided in addition to consultive services, a separate compensation
may be paid with prior agreement between the client and REALTOR®. (Adopted 1/96)
The competency required by Article 11 relates to services contracted for between REALTORS® and
their clients or customers; the duties expressly imposed by the Code of
Ethics; and the duties imposed by law or regulation. (Adopted 1/02)
Article 12
REALTORS® shall
be honest and truthful in their real estate communications and shall
present a true picture in their advertising, marketing, and other
representations. REALTORS® shall
ensure that their status as real estate professionals is readily
apparent in their advertising, marketing, and other representations,
and that the recipients of all real estate communications are, or have
been, notified that those communications are from a real estate
professional. (Amended 1/08)
The
offering of premiums, prizes, merchandise discounts or other
inducements to list, sell, purchase, or lease is not, in itself,
unethical even if receipt of the benefit is contingent on listing,
selling, purchasing, or leasing through the REALTOR® making the offer. However, REALTORS® must
exercise care and candor in any such advertising or other public or
private representations so that any party interested in receiving or
otherwise benefiting from the REALTOR®’s
offer will have clear, thorough, advance understanding of all the terms
and conditions of the offer. The offering of any inducements to do
business is subject to the limitations and restrictions of state law
and the ethical obligations established by any applicable Standard of
Practice. (Amended 1/95)
REALTORS® shall
not advertise nor permit any person employed by or affiliated with them
to advertise listed property in any medium (e.g., electronically,
print, radio, television, etc.) without disclosing the name of that
REALTOR®'s firm in a reasonable and readily apparent manner. (Adopted 11/86, Amended 1/07)
The
obligation to present a true picture in representations to the public
includes information presented, provided, or displayed on REALTORS®’websites. REALTORS® shall
use reasonable efforts to ensure that information on their websites is
current. When it becomes apparent that information on a REALTOR®’s website is no longer current or accurate, REALTORS® shall promptly take corrective action. (Adopted 1/07)
REALTOR® firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner.
Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner. (Adopted 1/07)
REALTORS®’
obligation to present a true picture in their advertising and
representations to the public includes the URLs and domain names they
use, and prohibits REALTORS® from:
The obligation to present a true picture in advertising, marketing, and representations allows REALTORS® to
use and display only professional designations, certifications, and
other credentials to which they are legitimately entitled. (Adopted
1/08)
Article 13
REALTORS® shall
not engage in activities that constitute the unauthorized practice of
law and shall recommend that legal counsel be obtained when the
interest of any party to the transaction requires it.
Article 14
If
charged with unethical practice or asked to present evidence or to
cooperate in any other way, in any professional standards proceeding or
investigation, REALTORS®shall
place all pertinent facts before the proper tribunals of the Member
Board or affiliated institute, society, or council in which membership
is held and shall take no action to disrupt or obstruct such processes.
(Amended 1/99)
REALTORS® shall not be subject to disciplinary proceedings in more than one Board of REALTORS® or
affiliated institute, society or council in which they hold membership
with respect to alleged violations of the Code of Ethics relating to
the same transaction or event. (Amended 1/95)
REALTORS® shall
not make any unauthorized disclosure or dissemination of the
allegations, findings, or decision developed in connection with an
ethics hearing or appeal or in connection with an arbitration hearing
or procedural review. (Amended 1/92)
REALTORS® shall
not obstruct the Board’s investigative or professional standards
proceedings by instituting or threatening to institute actions for
libel, slander or defamation against any party to a professional
standards proceeding or their witnesses based on the filing of an
arbitration request, an ethics complaint, or testimony given before any
tribunal. (Adopted 11/87, Amended 1/99)
REALTORS® shall
not intentionally impede the Board’s investigative or
disciplinary proceedings by filing multiple ethics complaints based on
the same event or transaction. (Adopted 11/88)
Duties to REALTORS®
Article 15
REALTORS® shall
not knowingly or recklessly make false or misleading statements about
competitors, their businesses, or their business practices. (Amended
1/92)
REALTORS® shall not knowingly or recklessly file false or unfounded ethics complaints. (Adopted 1/00)
The
obligation to refrain from making false or misleading statements about
competitors’ businesses and competitors’ business practices
includes the duty to not knowingly or recklessly repeat, retransmit, or
republish false or misleading statements made by others. This duty
applies whether false or misleading statements are repeated in person,
in writing, by technological means (e.g., the Internet), or by any
other means. (Adopted 1/07)
Article 16
REALTORS® shall
not engage in any practice or take any action inconsistent with
exclusive representation or exclusive brokerage relationship agreements
that other REALTORS® have with clients. (Amended 1/04)
Article 16 does not preclude REALTORS® from
making general announcements to prospects describing their services and
the terms of their availability even though some recipients may have
entered into agency agreements or other exclusive relationships with
another REALTOR®.
A general telephone canvass, general mailing or distribution addressed
to all prospects in a given geographical area or in a given profession,
business, club, or organization, or other classification or group is
deemed “general” for purposes of this standard. (Amended
1/04)
Article 16 is intended to recognize as unethical two basic types of solicitations:
First,
telephone or personal solicitations of property owners who have been
identified by a real estate sign, multiple listing compilation, or
other information service as having exclusively listed their property
with another REALTOR®; and
Second, mail or other forms of written solicitations of prospects whose properties are exclusively listed with another REALTOR® when
such solicitations are not part of a general mailing but are directed
specifically to property owners identified through compilations of
current listings, “for sale” or “for rent”
signs, or other sources of information required by Article 3 and
Multiple Listing Service rules to be made available to other REALTORS®under offers of subagency or cooperation. (Amended 1/04)
Article 16 does not preclude REALTORS® from
contacting the client of another broker for the purpose of offering to
provide, or entering into a contract to provide, a different type of
real estate service unrelated to the type of service currently being
provided (e.g., property management as opposed to brokerage) or from
offering the same type of service for property not subject to other
brokers’ exclusive agreements. However, information received
through a Multiple Listing Service or any other offer of cooperation
may not be used to target clients of other REALTORS® to whom such offers to provide services may be made. (Amended 1/04)
REALTORS® shall
not solicit a listing which is currently listed exclusively with
another broker. However, if the listing broker, when asked by the
REALTOR®,
refuses to disclose the expiration date and nature of such listing;
i.e., an exclusive right to sell, an exclusive agency, open listing, or
other form of contractual agreement between the listing broker and the
client, the REALTOR® may contact the owner to secure such information and may discuss the terms upon which the REALTOR® might
take a future listing or, alternatively, may take a listing to become
effective upon expiration of any existing exclusive listing. (Amended
1/94)
REALTORS® shall
not solicit buyer/tenant agreements from buyers/ tenants who are
subject to exclusive buyer/tenant agreements. However, if asked by a
REALTOR®, the broker refuses to disclose the expiration date of the exclusive buyer/tenant agreement, the REALTOR® may contact the buyer/tenant to secure such information and may discuss the terms upon which the REALTOR® might
enter into a future buyer/tenant agreement or, alternatively, may enter
into a buyer/tenant agreement to become effective upon the expiration
of any existing exclusive buyer/tenant agreement. (Adopted 1/94,
Amended 1/98)
When REALTORS® are contacted by the client of another REALTOR®regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have
not directly or indirectly initiated such discussions, they may discuss
the terms upon which they might enter into a future agreement or,
alternatively, may enter into an agreement which becomes effective upon
expiration of any existing exclusive agreement. (Amended 1/98)
REALTORS®,
acting as buyer or tenant representatives or brokers, shall disclose
that relationship to the seller/landlord’s representative or
broker at first contact and shall provide written confirmation of that
disclosure to the seller/landlord’s representative or broker not
later than execution of a purchase agreement or lease. (Amended 1/04)
On
unlisted property, REALTORS® acting as buyer/tenant representatives
or brokers shall disclose that relationship to the seller/landlord at
first contact for that buyer/tenant and shall provide written
confirmation of such disclosure to the seller/landlord not later than
execution of any purchase or lease agreement. (Amended 1/04)
REALTORS® shall make any request for anticipated compensation from the seller/ landlord at first contact. (Amended 1/98)
REALTORS®,
acting as representatives or brokers of sellers/landlords or as
subagents of listing brokers, shall disclose that relationship to
buyers/tenants as soon as practicable and shall provide written
confirmation of such disclosure to buyers/tenants not later than
execution of any purchase or lease agreement. (Amended 1/04)
All
dealings concerning property exclusively listed, or with buyer/tenants
who are subject to an exclusive agreement shall be carried on with the
client’s representative or broker, and not with the client,
except with the consent of the client’s representative or broker
or except where such dealings are initiated by the client.
Before
providing substantive services (such as writing a purchase offer or
presenting a CMA) to prospects, REALTORS® shall ask prospects
whether they are a party to any exclusive representation agreement.
REALTORS® shall not knowingly provide substantive services
concerning a prospective transaction to prospects who are parties to
exclusive representation agreements, except with the consent of the
prospects’ exclusive representatives or at the direction of
prospects. (Adopted 1/93, Amended 1/04)
In
cooperative transactions REALTORS® shall compensate cooperating
REALTORS® (principal brokers) and shall not compensate nor offer to
compensate, directly or indirectly, any of the sales licensees employed
by or affiliated with other REALTORS® without the prior express
knowledge and consent of the cooperating broker.
REALTORS®,
acting as subagents or buyer/tenant representatives or brokers, shall
not use the terms of an offer to purchase/lease to attempt to modify
the listing broker’s offer of compensation to subagents or
buyer/tenant representatives or brokers nor make the submission of an
executed offer to purchase/lease contingent on the listing
broker’s agreement to modify the offer of compensation. (Amended
1/04)
REALTORS® shall
not use information obtained from listing brokers through offers to
cooperate made through multiple listing services or through other
offers of cooperation to refer listing brokers’ clients to other
brokers or to create buyer/tenant relationships with listing
brokers’ clients, unless such use is authorized by listing
brokers. (Amended 1/02)
REALTORS®,
prior to or after terminating their relationship with their current
firm, shall not induce clients of their current firm to cancel
exclusive contractual agreements between the client and that firm. This
does not preclude REALTORS® (principals)
from establishing agreements with their associated licensees governing
assignability of exclusive agreements. (Adopted 1/98)
Article 17
In
the event of contractual disputes or specific non-contractual disputes
as defined in Standard of Practice 17-4 between REALTORS® (principals) associated with different firms, arising out of their relationship as REALTORS®, the REALTORS®shall
submit the dispute to arbitration in accordance with the regulations of
their Board or Boards rather than litigate the matter.
In the event clients of REALTORS® wish to arbitrate contractual disputes arising out of real estate transactions, REALTORS® shall
arbitrate those disputes in accordance with the regulations of their
Board, provided the clients agree to be bound by the decision.
The obligation to participate in arbitration contemplated by this Article includes the obligation of REALTORS® (principals) to cause their firms to arbitrate and be bound by any award. (Amended 1/01)
The filing of litigation and refusal to withdraw from it by REALTORS® in an arbitrable matter constitutes a refusal to arbitrate. (Adopted 2/86)
Article 17 does not require REALTORS® to
arbitrate in those circumstances when all parties to the dispute advise
the Board in writing that they choose not to arbitrate before the
Board. (Amended 1/93)
REALTORS®, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other REALTORS® absent a specific written agreement to the contrary. (Adopted 1/96)
Specific non-contractual disputes that are subject to arbitration pursuant to Article 17 are:
The obligation to arbitrate established in Article 17 includes disputes between REALTORS® (principals)
in different states in instances where, absent an established
inter–association arbitration agreement, the REALTOR®(principal)
requesting arbitration agrees to submit to the jurisdiction of, travel
to, participate in, and be bound by any resulting award rendered in
arbitration conducted by the respondent(s) REALTOR®’s association, in instances where the respondent(s) REALTOR®’s association determines that an arbitrable issue exists. (Adopted 1/07)
The
Code of Ethics was adopted in 1913. Amended at the Annual Convention in
1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962, 1974, 1982, 1986,
1987, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999,
2000, 2001, 2002, 2003, 2004, 2005, 2006, and 2007.
Explanatory Notes
The
reader should be aware of the following policies which have been
approved by the Board of Directors of the National Association:
In filing a charge of an alleged violation of the Code of Ethics by a REALTOR®,
the charge must read as an alleged violation of one or more Articles of
the Code. Standards of Practice may be cited in support of the charge.
The
Standards of Practice serve to clarify the ethical obligations imposed
by the various Articles and supplement, and do not substitute for, the
Case Interpretations in Interpretations of the Code of Ethics.
Modifications
to existing Standards of Practice and additional new Standards of
Practice are approved from time to time. Readers are cautioned to
ensure that the most recent publications are utilized.
