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)
•
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, 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)
•
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 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)
•
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)
•
Standard of Practice 12-12
Realtors ® shall
not:
1)
use URLs or domain names that present less than a true
picture,
or
2)
register
URLs or domain names which, if used, would present less than a true picture.
(Adopted 1/08)
•
Standard of Practice 12-13
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)
•
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, 2006, 2007 and
2008.
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.
