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. The 2013 Code of Ethics and Standards of
Practice of the NATIONAL ASSOCIATION of REALTORS® is provided
below.
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:
- 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
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:
-
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
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)
Standard of Practice 1-16
REALTORS® shall not use, or permit or enable others to use,
listed or managed property on terms or conditions other than
those authorized by the owner or seller. (Adopted 1/12)
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
To be effective, any change in compensation offered for
cooperative services must be communicated to the other REALTOR®
prior to the time that REALTOR® submits an offer to
purchase/lease the property. (Amended 1/10)
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 relationship with the client. (Amended 1/11)
Standard of Practice 3-8
REALTORS® shall not misrepresent the availability of access to
show or inspect a listed property. (Amended 11/87)
Standard of Practice 3-9
REALTORS® shall not provide access to listed property on terms
other than those established by the owner or the listing broker.
(Adopted 1/10)
Standard of Practice 3-10
The duty to cooperate established in Article 3 relates to the
obligation to share information on listed property, and to make
property available to other brokers for showing to prospective
purchasers/tenants when it is in the best interests of
sellers/landlords. (Adopted 1/11)
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, national origin, or sexual orientation. 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, national origin or sexual orientation.
(Amended 1/11)
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, national origin,
or sexual orientation. (Amended 1/11)
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, national
origin, or sexual orientation. (Adopted 1/94, Renumbered 1/05 and
1/06, Amended 1/11)
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, land 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 1/10)
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 unless the party requesting the opinion
requires a specific type of report or different data set:
- 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 1/10)
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 real estate services or 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. This Standard of
Practice acknowledges that disclosing the name of the firm may not
be practical in electronic displays of limited information (e.g.
"thumbnails", text messages, "tweets", etc.). Such displays are
exempt from the disclosure requirement established in the Standard
of Practice, but only when linked to a display that includes all
required disclosures. (Adopted 11/86, Amended 1/11)
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 Internet
content posted, and 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 and other content in any way that produces a deceptive
or misleading result;
-
deceptively using metatags, keywords or other devices/methods to
direct, drive, or divert Internet traffic; or
-
presenting content developed by others without either
attribution or without permission, or
-
to otherwise mislead consumers. (Adopted 1/07, Amended 1/13)
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:
-
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
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 other real estate professionals, their businesses,
or their business practices. (Amended 1/12)
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 other real estate professionals, their businesses
and their business practices includes the duty to not knowingly or
recklessly publish, 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. (Amended 1/12)
Standard of Practice 15-3
The obligation to refrain from making false or misleading
statements about other real estate professionals, their
businesses, and their business practices includes the duty to
publish a clarification about or to remove statements made by
others on electronic media the REALTOR® controls once the REALTOR®
knows the statement is false or misleading. (Amended 1/12)
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 their relationship with their current
firm is terminated, 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, Amended
1/10)
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 mediate the dispute
if the Board requires its members to mediate. If the dispute is
not resolved through mediation, or if mediation is not required,
REALTORS® shall submit the dispute to arbitration in accordance
with the policies of their Board rather than litigate the matter.
In the event clients of REALTORS® wish to mediate or arbitrate
contractual disputes arising out of real estate transactions,
REALTORS® shall mediate or arbitrate those disputes in accordance
with the policies of the Board, provided the clients agree to be
bound by any resulting agreement or award.
The obligation to participate in mediation or arbitration
contemplated by this Article includes the obligation of REALTORS®
(principals) to cause their firms to mediate or arbitrate and be
bound by any resulting agreement or award. (Amended 1/12)
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 mediate in those
circumstances when all parties to the dispute advise the Board in
writing that they choose not to mediate through the Board's
facilities. The fact that all parties decline to participate in
mediation does not relieve REALTORS® of the duty to arbitrate.
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 1/12)
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:
-
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 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)
-
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)
-
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)
-
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 1914, 1915, 1924, 1928, 1950, 1951, 1952, 1955,
1956, 1961, 1962, 1974, 1975, 1982, 1986, 1987, 1989, 1990, 1991,
1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002,
2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, and 2012.
