NAR: Real Estate Resources: 2011 Code of Ethics and Standards ...

Print a stylish color poster of the NAR Code of Ethics suitable for framing and hanging in your office. Realtors 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. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. 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. 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. 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. 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. Information concerning latent material defects is not considered confidential information under this Code of Ethics. 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. Article 2 does not impose upon the REALTOR? the obligation of expertise in other professional or technical disciplines. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. 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. 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. When recommending real estate products or services (e. The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. 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?. 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. When acting as listing brokers or as subagents, REALTORS? shall not quote a price different from that agreed upon with the seller/landlord. This Standard of Practice acknowledges that disclosing the name of the firm may not be practical in electronic displays of limited information (e. 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. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e. 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. However, if the listing broker, when asked by the REALTOR?, refuses to disclose the expiration date and nature of such listing; i. This does not preclude REALTORS? (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements. 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. 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. 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. 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. 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. 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. Amended at the Annual Convention in 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962, 1974, 1982, 1986, 1987, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, and 2010. Standards of Practice may be cited in support of the charge. Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. Readers are cautioned to ensure that the most recent publications are utilized.