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Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS
®
Effective January 1, 2008
Duties to Clients and Customers
Duties to the Public
Duties to REALTORS®
Where the word REALTORS®
is used in this Code and Preamble, it shall be deemed to
include REALTOR-ASSOCIATE®s.
While the Code of Ethics establishes obligations that may be
higher than those mandated by law, in any instance where the
Code of Ethics and the law conflict, the obligations of the
law must take precedence.
Preamble
Under all is the land. Upon its wise utilization and widely
allocated ownership depend the survival and growth of free
institutions and of our civilization. REALTORS®
should recognize that the interests of the nation and its
citizens require the highest and best use of the land and
the widest distribution of land ownership. They require the
creation of adequate housing, the building of functioning
cities, the development of productive industries and farms,
and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary
commerce. They impose grave social responsibility and a
patriotic duty to which REALTORS®
should dedicate themselves, and for which they should be
diligent in preparing themselves. REALTORS®,
therefore, are zealous to maintain and improve the standards
of their calling and share with their fellow REALTORS®
a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to
clients, customers, the public, and each other, REALTORS®
continuously strive to become and remain informed on issues
affecting real estate and, as knowledgeable professionals,
they willingly share the fruit of their experience and study
with others. They identify and take steps, through
enforcement of this Code of Ethics and by assisting
appropriate regulatory bodies, to eliminate practices which
may damage the public or which might discredit or bring
dishonor to the real estate profession. REALTORS®
having direct personal knowledge of conduct that may violate
the Code of Ethics involving misappropriation of client or
customer funds or property, willful discrimination, or fraud
resulting in substantial economic harm, bring such matters
to the attention of the appropriate Board or Association of
REALTORS®.
(Amended 1/00)
Realizing that cooperation with other real estate
professionals promotes the best interests of those who
utilize their services, REALTORS®
urge exclusive representation of clients; do not attempt to
gain any unfair advantage over their competitors; and they
refrain from making unsolicited comments about other
practitioners. In instances where their opinion is sought,
or where REALTORS®
believe that comment is necessary, their opinion is offered
in an objective, professional manner, uninfluenced by any
personal motivation or potential advantage or gain.
The term REALTOR®
has come to connote competency, fairness, and high integrity
resulting from adherence to a lofty ideal of moral conduct
in business relations. No inducement of profit and no
instruction from clients ever can justify departure from
this ideal.
In the interpretation of this obligation, REALTORS®
can take no safer guide than that which has been handed down
through the centuries, embodied in the Golden Rule,
“Whatsoever ye would that others should do to you, do ye
even so to them.”
Accepting this standard as their own, REALTORS®
pledge to observe its spirit in all of their activities
whether conducted personally, through associates or others,
or via technological means, and to conduct their business in
accordance with the tenets set forth below. (Amended 1/07)
Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or
other client as an agent, REALTORS®
pledge themselves to protect and promote the interests of
their client. This obligation to the client is primary, but
it does not relieve REALTORS®
of their obligation to treat all parties honestly. When
serving a buyer, seller, landlord, tenant or other party in
a non-agency capacity, REALTORS®
remain obligated to treat all parties honestly. (Amended
1/01)
Standard of
Practice 1-1
®,
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
®,
in attempting to secure a listing, shall not
deliberately mislead the owner as to market value.
Standard of Practice 1-4
®,
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
®
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
®
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
®
, 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:
- reveal confidential information of
clients; or
use confidential information of clients to the
disadvantage of clients; or
use confidential information of clients for the
REALTOR®’s
advantage or the advantage of third parties unless:
- clients consent after full
disclosure; or
REALTORS®
are required by court order; or
it is the intention of a client to
commit a crime and the information is necessary
to prevent the crime; or
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
®
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
®
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:
- 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;
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
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:
- the REALTOR
®’s
company policies regarding cooperation;
the amount of compensation to be paid by the
client;
the potential for additional or offsetting
compensation from other brokers, from the seller or
landlord, or from other parties;
any potential for the buyer/tenant
representative to act as a disclosed dual agent,
e.g. listing broker, subagent, landlord’s agent,
etc., and
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
®,
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
®
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
®
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
®,
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
®
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
®,
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
®
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
®
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
®
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
®
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)
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
®
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:
- identification of the subject property
date prepared
defined value or price
limiting conditions, including statements of
purpose(s) and intended user(s)
any present or contemplated interest, including
the possibility of representing the seller/landlord
or buyers/tenants
basis for the opinion, including applicable
market data
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
®
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
®
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
®
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
®
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
®
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
®,
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
®
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
®
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
®’
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:
- engaging in deceptive or unauthorized
framing of real estate brokerage websites;
manipulating (e.g., presenting content
developed by others) listing content in any way that
produces a deceptive or misleading result; or
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
®
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
®
shall not:
- use URLs or domain names that present
less than a true picture, or
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
®
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
®
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
®
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
®
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
®
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
®
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
®
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
®
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
®,
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
®
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
®,
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
®,
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:
- 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)
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 amoun |
