Where
the word REALTORS® is used in this Code and Preamble, it
shall be deemed to include
Realtor-Associates.
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)
• Standard
of Practice 1-1
REALTORS®,
when acting as principals in a real estate
transaction, remain obligated by the duties imposed
by the Code of Ethics. (Amended 1/93)
• Standard
of Practice 1-2
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)
• Standard
of Practice 1-3
REALTORS®,
in attempting to secure a listing, shall not
deliberately mislead the owner as to market value.
• Standard
of Practice 1-4
REALTORS®,
when seeking to become a buyer/tenant
representative, shall not mislead buyers or tenants
as to savings or other benefits
that might be realized through use of the
Realtor®’s
services.
(Amended 1/93)
• Standard
of Practice 1-5
REALTORS®
may represent the seller/landlord and buyer/tenant
in the same transaction only after full disclosure
to and with informed consent of both parties.
(Adopted 1/93)
• Standard
of Practice 1-6
REALTORS®
shall submit offers and counter-offers objectively
and as quickly as possible. (Adopted 1/93,
Amended 1/95)
• Standard
of Practice 1-7
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)
• Standard
of Practice 1-8
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)
• Standard
of Practice 1-9
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:
1) reveal
confidential information of clients; or
2) use
confidential information of clients to the
disadvantage of clients; or
3) use
confidential information of clients for the
Realtor®’s
advantage or the advantage of third parties unless:
a) clients
consent after full disclosure; or
b) REALTORS®
are required by court order; or
c) it
is the intention of a client to commit a crime and
the information is necessary to prevent the crime;
or
d) it
is necessary to defend a
Realtor®
or the Realtor®’s
employees or associates against an accusation of
wrongful conduct.
Information concerning latent material defects is
not considered confidential information under this
Code of Ethics. (Adopted 1/93, Amended 1/01)
• Standard
of Practice 1-10
REALTORS®
shall, consistent with the terms and conditions of
their real estate licensure and their property
management agreement, competently manage the
property of clients with due regard for the rights,
safety and health of tenants and others lawfully on
the premises. (Adopted 1/95, Amended 1/00)
• Standard
of Practice 1-11
REALTORS®
who are employed to maintain or manage a client’s
property shall exercise due diligence and make
reasonable efforts to protect it against reasonably
foreseeable contingencies and losses. (Adopted
1/95)
• Standard
of Practice 1-12
When
entering into listing contracts,
REALTORS®
must advise sellers/ landlords of:
1) the
Realtor®’s
company policies regarding cooperation and the
amount(s) of any compensation that will be offered
to subagents, buyer/tenant agents, and/or brokers
acting in legally recognized non-agency capacities;
2) the
fact that buyer/tenant agents or brokers, even if
compensated by listing brokers, or by
sellers/landlords may represent the interests of
buyers/tenants; and
3) any
potential for listing brokers to act as disclosed
dual agents, e.g. buyer/tenant agents. (Adopted
1/93, Renumbered 1/98, Amended 1/03)
• Standard
of Practice 1-13
When
entering into buyer/tenant agreements,
REALTORS®
must advise potential clients of:
1) the
Realtor®’s
company policies regarding cooperation;
2) the
amount of compensation to be paid by the client;
3) the
potential for additional or offsetting compensation
from other brokers, from the seller or landlord, or
from other parties;
4) any
potential for the buyer/tenant representative to act
as a disclosed dual agent, e.g. listing broker,
subagent, landlord’s agent, etc., and
5) the
possibility that sellers or sellers’ representatives
may not treat the existence, terms, or conditions of
offers as confidential unless confidentiality is
required by law, regulation, or by any
confidentiality agreement between the parties.
(Adopted 1/93, Renumbered 1/98, Amended 1/06)
• Standard
of Practice 1-14
Fees
for preparing appraisals or other valuations shall
not be contingent upon the amount of the appraisal
or valuation.
(Adopted 1/02)
• Standard
of Practice 1-15
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 whether offers were obtained by the
listing licensee, another licensee in the listing
firm, or by a cooperating broker. (Adopted 1/03,
Amended 1/06)
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)
• Standard
of Practice 2-1
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)
• Standard
of Practice 2-2
(Renumbered as Standard of Practice 1-12 1/98)
• Standard
of Practice 2-3
(Renumbered as Standard of Practice 1-13 1/98)
• Standard
of Practice 2-4
REALTORS®
shall not be parties to the naming of a false
consideration in any document, unless it be the
naming of an obviously nominal consideration.
• Standard
of Practice 2-5
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)
• Standard
of Practice 3-1
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)
• Standard
of Practice 3-2
REALTORS®
shall, with respect to offers of compensation to
another
Realtor®, timely communicate any
change of compensation for cooperative services to
the other
Realtor® prior to the time such
Realtor®
produces an offer to purchase/lease the property.
(Amended 1/94)
• Standard
of Practice 3-3
Standard of Practice 3-2 does not preclude the
listing broker and cooperating broker from entering
into an agreement to change cooperative
compensation. (Adopted 1/94)
• Standard
of Practice 3-4
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)
• Standard
of Practice 3-5
It is
the obligation of subagents to promptly disclose all
pertinent facts to the principal’s agent prior to as
well as after a purchase or lease agreement is
executed. (Amended 1/93)
• Standard
of Practice 3-6
REALTORS®
shall disclose the existence of accepted offers,
including offers with unresolved contingencies, to
any broker seeking cooperation. (Adopted 5/86,
Amended 1/04
• Standard
of Practice 3-7
When
seeking information from another
Realtor®
concerning property under a management or listing
agreement,
REALTORS® shall disclose their
Realtor®
status and whether their interest is personal or on
behalf of a client and, if on behalf of a client,
their representational status. (Amended 1/95)
• Standard
of Practice 3-8
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)
• Standard
of Practice 4-1
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)
• Standard
of Practice 6-1
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)
• Standard
of Practice 9-1
For
the protection of all parties,
REALTORS®
shall use reasonable care to ensure that documents
pertaining to the purchase, sale, or lease of real
estate are kept current through the use of written
extensions or amendments. (Amended 1/93)
• Standard
of Practice 9-2
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
• Standard
of Practice 10-1
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)
• Standard
of Practice 10-2
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)
• Standard
of Practice 10-3
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)
• Standard
of Practice 10-4
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 and 1/06)
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)
• Standard
of Practice 11-1
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:
1) identification
of the subject property
2) date
prepared
3) defined
value or price
4) limiting
conditions, including statements of purpose(s) and
intended user(s)
5) any
present or contemplated interest, including the
possibility of representing the seller/landlord or
buyers/tenants
6) basis
for the opinion, including applicable market data
7) if
the opinion is not an appraisal, a statement to that
effect (Amended 1/01)
• Standard
of Practice 11-2
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)
• Standard
of Practice 11-3
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)
• Standard
of Practice 11-4
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 careful at all times to present a true
picture in their advertising and representations to
the public.
REALTORS® shall also ensure that
their professional status (e.g., broker, appraiser,
property manager, etc.) or status as
REALTORS®
is clearly identifiable in any such advertising.
(Amended 1/93)
• Standard
of Practice 12-1
REALTORS®
may use the term “free” and similar terms in their
advertising and in other representations provided
that all terms governing availability of the offered
product or service are clearly disclosed at the same
time. (Amended 1/97)
• Standard
of Practice 12-2
REALTORS®
may represent their services as “free” or without
cost
even if they expect to receive compensation from a
source other than their client provided that the
potential for the
Realtor®
to obtain a benefit from a third party is clearly
disclosed at the same time. (Amended 1/97)
• Standard
of Practice 12-3
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)
• Standard
of Practice 12-4
REALTORS®
shall not offer for sale/lease or advertise property
without authority. When acting as listing brokers or
as subagents,
REALTORS® shall not quote a price
different from that agreed upon with the
seller/landlord. (Amended 1/93)
• Standard
of Practice 12-5
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)
• Standard
of Practice 12-6
REALTORS®,
when advertising unlisted real property for
sale/lease in which they have an ownership interest,
shall disclose their status as both owners/landlords
and as
REALTORS® or real estate
licensees. (Amended 1/93)
• Standard
of Practice 12-7
Only
REALTORS®
who participated in the transaction as the listing
broker or cooperating broker (selling broker) may
claim to have “sold” the property. Prior to closing,
a cooperating broker may
post a “sold” sign only with the consent of the
listing broker. (Amended 1/96)
• Standard
of Practice 12-8
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)
• Standard
of Practice 12-9
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)
• Standard
of Practice 12-10
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:
1) engaging
in deceptive or unauthorized framing of real
estate brokerage websites;
2) manipulating
(e.g., presenting content developed by others)
listing content in any way that produces a deceptive
or misleading result; or
3) deceptively
using metatags, keywords or other devices/ methods
to direct, drive, or divert Internet traffic, or to
otherwise mislead consumers. (Adopted 1/07)
• Standard
of Practice 12-11
REALTORS®
intending to share or sell consumer information
gathered via the Internet shall disclose that
possibility in a reasonable and readily apparent
manner. (Adopted 1/07)
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)
• Standard
of Practice 14-1
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)
• Standard
of Practice 14-2
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)
• Standard
of Practice 14-3
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)
• Standard
of Practice 14-4
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)
• Standard
of Practice 15-1
REALTORS®
shall not knowingly or recklessly file false or
unfounded ethics complaints. (Adopted 1/00)
• Standard
of Practice 15-2
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)
• Standard
of Practice 16-1
Article 16 is not intended to prohibit aggressive or
innovative business practices which are otherwise
ethical and does not prohibit disagreements with
other
REALTORS®
involving commission, fees, compensation or other
forms of payment or expenses. (Adopted 1/93,
Amended 1/95)
• Standard
of Practice 16-2
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)
• Standard
of Practice 16-3
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)
• Standard
of Practice 16-4
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)
• Standard
of Practice 16-5
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)
• Standard
of Practice 16-6
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)
• Standard
of Practice 16-7
The
fact that a prospect has retained a
Realtor®
as an exclusive representative or exclusive broker
in one or more past transactions does not preclude
other
REALTORS®
from seeking such prospect’s future business.
(Amended 1/04)
• Standard
of Practice 16-8
The
fact that an exclusive agreement has been entered
into with a Realtor® shall not preclude or inhibit any other
Realtor®
from entering into a similar agreement after the
expiration of the prior agreement. (Amended 1/98)
• Standard
of Practice 16-9
REALTORS®,
prior to entering into a representation agreement,
have an affirmative obligation to make reasonable
efforts to determine whether the prospect is subject
to a current, valid exclusive agreement to provide
the same type of real estate service. (Amended
1/04)
• Standard
of Practice 16-10
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)
• Standard
of Practice 16-11
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)
• Standard
of Practice 16-12
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)
• Standard
of Practice 16-13
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)
• Standard
of Practice 16-14
REALTORS®
are free to enter into contractual relationships or
to negotiate with sellers/landlords, buyers/tenants
or others who are not subject to an exclusive
agreement but shall not knowingly obligate them to
pay more than one commission except with their
informed consent. (Amended 1/98)
• Standard
of Practice 16-15
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.
• Standard
of Practice 16-16
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)
• Standard
of Practice 16-17
REALTORS®,
acting as subagents or as buyer/tenant
representatives or brokers, shall not attempt to
extend a listing broker’s offer of cooperation
and/or compensation to other brokers without the
consent of the listing broker. (Amended 1/04)
• Standard
of Practice 16-18
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)
• Standard
of Practice 16-19
Signs
giving notice of property for sale, rent, lease, or
exchange shall not be placed on property without
consent of the seller/landlord. (Amended 1/93)
• Standard
of Practice 16-20
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)
• Standard
of Practice 17-1
The
filing of litigation and refusal to withdraw from it
by REALTORS®
in an arbitrable matter constitutes a refusal to
arbitrate. (Adopted 2/86)
• Standard
of Practice 17-2
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)
• Standard
of Practice 17-3
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)
• Standard
of Practice 17-4
Specific non-contractual disputes that are subject
to arbitration pursuant to Article 17 are:
1) Where
a listing broker has compensated a cooperating
broker and another cooperating broker
subsequently claims to be the procuring cause of the
sale or lease. In such cases the complainant may
name the first cooperating broker as respondent and
arbitration may proceed without the listing broker
being named as a respondent. When arbitration occurs
between two (or more) cooperating brokers and where
the listing broker is not a party, the amount in
dispute and the amount of any potential resulting
award is limited to the amount paid to the
respondent by the listing broker and any amount
credited or paid to a party to the transaction at
the direction of the respondent. Alternatively, if
the complaint is brought against the listing broker,
the listing broker may name the first cooperating
broker as a third-party respondent. In either
instance the decision of the hearing panel as to
procuring cause shall be conclusive with respect to
all current or subsequent claims of the parties for
compensation arising out of the underlying
cooperative transaction. (Adopted 1/97, Amended
1/07)
2) Where
a buyer or tenant representative is compensated by
the seller or landlord, and not by the listing
broker, and the listing broker, as a result, reduces
the commission owed by the seller or landlord and,
subsequent to such actions, another cooperating
broker claims to be the procuring cause of sale or
lease. In such cases the complainant may name the
first cooperating broker as respondent and
arbitration may proceed without the listing broker
being named as a respondent. When arbitration occurs
between two (or more) cooperating brokers and where
the listing broker is not a party, the amount in
dispute and the amount of any potential resulting
award is limited to the amount paid to the
respondent by the seller or landlord and any amount
credited or paid to a party to the transaction at
the direction of the respondent. Alternatively,
if the complaint is brought against the listing
broker, the listing broker may name the first
cooperating broker as a third-party respondent. In
either instance the decision of the hearing panel as
to procuring cause shall be conclusive with respect
to all current or subsequent claims of the parties
for compensation arising out of the underlying
cooperative transaction. (Adopted 1/97, Amended
1/07)
3) Where
a buyer or tenant representative is compensated by
the buyer or tenant and, as a result, the listing
broker reduces the commission owed by the seller or
landlord and, subsequent to such actions, another
cooperating broker claims to be the procuring cause
of sale or lease. In such cases the complainant may
name the first cooperating broker as respondent and
arbitration may proceed without the listing broker
being named as a respondent. Alternatively, if the
complaint is brought against the listing broker, the
listing broker may name the first cooperating broker
as a third-party respondent. In either instance the
decision of the hearing panel as to procuring cause
shall be conclusive with respect to all current or
subsequent claims of the parties for compensation
arising out of the underlying cooperative
transaction. (Adopted 1/97)
4) Where
two or more listing brokers claim entitlement to
compensation pursuant to open listings with a seller
or landlord who agrees to participate in arbitration
(or who requests arbitration) and who agrees to be
bound by the decision. In cases where one of the
listing brokers has been compensated by the seller
or landlord, the other listing broker, as
complainant, may name the first listing broker as
respondent and arbitration may proceed between the
brokers. (Adopted 1/97)
5) Where
a buyer or tenant representative is compensated by
the seller or landlord, and not by the listing
broker, and the listing broker, as a result, reduces
the commission owed by the seller or landlord and,
subsequent to such actions, claims to be the
procuring cause of sale or lease. In such cases
arbitration shall be between the listing broker and
the buyer or tenant representative and the amount in
dispute is limited to the amount of the reduction of
commission to which the listing broker agreed.
(Adopted 1/05)
• Standard
of Practice 17-5
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 and 2006.
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 Prac
