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Code
of Ethics and Standards of Practice of the National Association of Realtors® Effective
January 1, 2012 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, ñWhatsoever ye would that others should
do to you, do ye even so to them.î 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, ñclientî means the
person(s) or entity(ies) with whom a Realtor®
or a Realtor®Ís firm
has an agency or legally recognized non-agency relationship; ñcustomerî 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®Ís
firm; ñprospectî means a purchaser, seller, tenant, or landlord who is not
subject to a representation relationship with the Realtor® or Realtor®Ís
firm; ñagentî means a real estate licensee (including brokers and sales associates)
acting in an agency relationship as defined by state law or regulation; and
ñbrokerî 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 - Standard of Practice 1-5 Realtors®
may represent the seller/landlord and buyer/tenant in the same transaction only
after full disclosure to and with informed consent of both parties. (Adopted 1/93) - Standard of Practice 1-6 Realtors® shall submit
offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95) - Standard of Practice 1-7 When acting as listing brokers, Realtors® shall continue to submit to the
seller/landlord all offers and counter-offers until closing or execution of a
lease unless the seller/landlord has waived this obligation in writing. Realtors® shall not be
obligated to continue to market the property after an offer has been accepted
by the seller/landlord. Realtors®
shall recommend that sellers/landlords obtain the advice of legal counsel prior
to acceptance of a subsequent offer except where the acceptance is contingent
on the termination of the pre-existing purchase contract or lease. (Amended 1/93) - Standard of Practice 1-8 Realtors®, acting as
agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers
and counter-offers until acceptance but have no obligation to continue to show
properties to their clients after an offer has been accepted unless otherwise
agreed in writing. Realtors®,
acting as agents or brokers of buyers/tenants, shall recommend that
buyers/tenants obtain the advice of legal counsel if there is a question as to
whether a pre-existing contract has been terminated. (Adopted 1/93, Amended 1/99) - Standard of Practice 1-9 The obligation of Realtors®
to preserve confidential information (as defined by state law) provided by
their clients in the course of any agency relationship or non-agency
relationship recognized by law continues after termination of agency
relationships or any non-agency relationships recognized by law. Realtors® shall not
knowingly, during or following the termination of professional relationships
with their clients: 1) reveal confidential
information of clients; or 2) use confidential
information of clients to the disadvantage of clients; or3) use
confidential information of clients for the Realtor®Ís advantage or the advantage of third
parties unless:
a) clients consent after
full disclosure; or
b) Realtors® are required by court order; or c) it is the
intention of a client to commit a crime and the information is necessary to
prevent the crime; or d) it is necessary
to defend a Realtor® or
the Realtor®Ís
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 clientÍs property shall exercise due diligence
and make reasonable efforts to protect it against reasonably foreseeable
contingencies and losses. (Adopted 1/95) - Standard of Practice 1-12 When entering into listing contracts, Realtors® must advise
sellers/ landlords of: 1) the Realtor®Ís company policies
regarding cooperation and the amount(s) of any compensation that will be
offered to subagents, buyer/tenant agents, and/or brokers acting in legally
recognized non-agency capacities; 2) the fact that
buyer/tenant agents or brokers, even if compensated by listing brokers, or by
sellers/landlords may represent the interests of buyers/tenants; and 3) any potential for
listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03) - Standard of Practice 1-13 When entering into buyer/tenant agreements, Realtors® must advise
potential clients of: 1) the Realtor®Ís company policies
regarding cooperation; 2) the amount of
compensation to be paid by the client; 3) the potential for
additional or offsetting compensation from other brokers, from the seller or
landlord, or from other parties; 4) any potential for
the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker,
subagent, landlordÍs agent, etc., and 5) the possibility
that sellers or sellersÍ 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. - Standard of Practice 1-15 Realtors®, in response
to inquiries from buyers or cooperating brokers shall, with the sellersÍ
approval, disclose the existence of offers on the property. Where disclosure is
authorized, 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 ñnon-materialî by law or regulation or
which are expressly referenced in law or regulation as not being subject to
disclosure are considered not ñpertinentî for purposes of Article 2. (Adopted 1/93) Article 3 Realtors® shall cooperate with other
brokers except when cooperation is not in the clientÍs 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 brokerÍs 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 principalÍs 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 ownerÍs 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
purchaserÍs 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 clientÍs knowledge and consent. When recommending real estate products or services (e.g.,
homeownerÍs 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®Ís 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®Ís 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, clientsÍ 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, 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 ñreal estate employment practicesî
relates to employees and independent contractors providing real estate-related
services and the administrative and clerical staff directly supporting those
individuals. (Adopted 1/00, Renumbered
1/05 and 1/06) Article 11 The
services which Realtors®
provide to their clients and customers shall conform to the standards of
practice and competence which are reasonably expected in the specific real
estate disciplines in which they engage; specifically, residential real estate
brokerage, real property management, commercial and industrial real estate
brokerage, 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: 1) identification of the subject
property 2) date prepared 3) defined value or price 4) limiting conditions,
including statements of purpose(s) and intended user(s) 5) any present or
contemplated interest, including the possibility of representing the
seller/landlord or buyers/tenants 6) basis for the
opinion, including applicable market data 7) if the opinion is
not an appraisal, a statement to that effect (Amended 1/10) - 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 ñfreeî 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 ñfreeî or without cost - 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®Ís
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®Ís 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.,
thumbnailsî, text messages, ñtweetsî, 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 ñsoldî the property. Prior to closing, a
cooperating broker may - Standard of Practice 12-8 The obligation to present a true picture in
representations to the - Standard of Practice 12-9 Realtor® firm websites
shall disclose the firmÍs 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 firmÍs name and that Realtor®Ís
or non-member licenseeÍs state(s) of licensure in a reasonable and readily
apparent manner. (Adopted 1/07) - Standard of Practice 12-10 Realtors®Í obligation to
present a true picture in their advertising and representations to the public
includes the URLs and domain names they use, and prohibits Realtors® from: 1) engaging in deceptive
or unauthorized framing of real estate brokerage websites; 2) manipulating (e.g.,
presenting content developed by others) listing content in any way that
produces a deceptive or misleading result; or 3) deceptively using metatags,
keywords or other devices/ methods to direct, drive, or divert Internet
traffic, or to otherwise mislead consumers. (Adopted 1/07) - Standard of Practice 12-11 Realtors® intending to
share or sell consumer information gathered via the Internet shall disclose
that possibility in a reasonable and readily apparent manner. (Adopted 1/07) - Standard of Practice 12-12 Realtors® shall not: 1) use URLs or domain
names that present less than a true picture, 2) register URLs or domain
names which, if used, would present less than a true picture. (Adopted 1/08) - Standard of Practice 12-13 The obligation to present a true picture in advertising,
marketing, and representations allows Realtors®
to use and display only professional designations, certifications, and other
credentials to which they are legitimately entitled. (Adopted 1/08) Article 13 Realtors® shall not engage in activities
that constitute the unauthorized practice of law and shall recommend that legal
counsel be obtained when the interest of any party to the transaction requires
it. Article 14 If
charged with unethical practice or asked to present evidence or to cooperate in
any other way, in any professional standards proceeding or investigation, Realtors® shall place all
pertinent facts before the proper tribunals of the Member Board or affiliated
institute, society, or council in which membership is held and shall take no
action to disrupt or obstruct such processes. (Amended 1/99) - Standard of Practice 14-1 Realtors® shall not be
subject to disciplinary proceedings in more than one Board of Realtors® or affiliated
institute, society, or council in which they hold membership with respect to
alleged violations of the Code of Ethics relating to the same transaction or
event. (Amended 1/95) - Standard of Practice 14-2 Realtors® shall not make
any unauthorized disclosure or dissemination of the allegations, findings, or
decision developed in connection with an ethics hearing or appeal or in
connection with an arbitration hearing or procedural review. (Amended 1/92) - Standard of Practice 14-3 Realtors® shall not
obstruct the BoardÍs 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 BoardÍs 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. (Adopted 1/07, 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. (Adopted 1/10,
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 ñgeneralî 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, ñfor
saleî or ñfor rentî 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 brokersÍ 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 prospectÍs 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/landlordÍs representative or broker at first contact and shall
provide written confirmation of that disclosure to the seller/landlordÍs
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 clientÍs representative or broker, and not with the client, except
with the consent of the clientÍs 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 prospectsÍ
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 brokerÍs 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 brokerÍs 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 brokerÍs 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 brokersÍ clients to other brokers or to create buyer/tenant
relationships with listing brokersÍ 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 the 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 their Board, provided the clients
agree to be bound by the any resulting agreement or award. The obligation to participate in mediation and arbitration
contemplated by this Article includes the obligation of Realtors® (principals) to cause their firms to mediate
and 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 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: 1) Where a listing
broker has compensated a cooperating broker and another cooperating broker subsequently claims
to be the procuring cause of the sale or lease. In such cases the complainant
may name the first cooperating broker as respondent and arbitration may proceed
without the listing broker being named as a respondent. When arbitration occurs
between two (or more) cooperating brokers and where the listing broker is not a
party, the amount in dispute and the amount of any potential resulting award is
limited to the amount paid to the respondent by the listing broker and any
amount credited or paid to a party to the transaction at the direction of the
respondent. Alternatively, if the complaint is brought against the listing
broker, the listing broker may name the first cooperating broker as a
third-party respondent. In either instance the decision of the hearing panel as
to procuring cause shall be conclusive with respect to all current or
subsequent claims of the parties for compensation arising out of the underlying
cooperative transaction. (Adopted 1/97,
Amended 1/07) 2) Where a buyer
or tenant representative is compensated by the seller or landlord, and not by
the listing broker, and the listing broker, as a result, reduces the commission
owed by the seller or landlord and, subsequent to such actions, another
cooperating broker claims to be the procuring cause of sale or lease. In such
cases the complainant may name the first cooperating broker as respondent and
arbitration may proceed without the listing broker being named as a respondent.
When arbitration occurs between two (or more) cooperating brokers and where the
listing broker is not a party, the amount in dispute and the amount of any
potential resulting award is limited to the amount paid to the respondent by
the seller or landlord and any amount credited or paid to a party to the
transaction at the
direction of the respondent. Alternatively, if the complaint is brought against the
listing broker, the listing broker may name the first cooperating broker as a
third-party respondent. In either instance the decision of the hearing panel as
to procuring cause shall be conclusive with respect to all current or
subsequent claims of the parties for compensation arising out of the underlying
cooperative transaction. (Adopted 1/97,
Amended 1/07) 3) Where a buyer
or tenant representative is compensated by the buyer or tenant and, as a
result, the listing broker reduces the commission owed by the seller or
landlord and, subsequent to such actions, another cooperating broker claims to
be the procuring cause of sale or lease. In such cases the complainant may name
the first cooperating broker as respondent and arbitration may proceed without
the listing broker being named as a respondent. Alternatively, if the complaint
is brought against the listing broker, the listing broker may name the first
cooperating broker as a third-party respondent. In either instance the decision
of the hearing panel as to procuring cause shall be conclusive with respect to
all current or subsequent claims of the parties for compensation arising out of
the underlying cooperative transaction. (Adopted
1/97) 4) Where two or
more listing brokers claim entitlement to compensation pursuant to open
listings with a seller or landlord who agrees to participate in arbitration (or
who requests arbitration) and who agrees to be bound by the decision. In cases 5) Where a buyer
or tenant representative is compensated by the seller or landlord, and not by
the listing broker, and the listing broker, as a result, reduces the commission
owed by the seller or landlord and, subsequent to such actions, claims to be
the procuring cause of sale or lease. In such cases arbitration shall be
between the listing broker and the buyer or tenant representative and the
amount in dispute is limited to the amount of the reduction of commission to
which the listing broker agreed. (Adopted
1/05) - Standard
of Practice 17-5 The obligation to arbitrate established in Article 17
includes disputes between Realtors®
(principals) in different states in instances where, absent an established
inter-association arbitration agreement, the Realtor®
(principal) requesting arbitration agrees to submit to the jurisdiction of,
travel to, participate in, and be bound by any resulting award rendered in
arbitration conducted by the respondent(s) Realtor®Ís
association, in instances where the respondent(s) Realtor®Ís association determines that an
arbitrable issue exists. (Adopted 1/07) The
Code of Ethics was adopted in 1913. Amended at the Annual
Convention in 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962, 1974, 1982,
1986, 1987, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999,
2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008 2009, 2010 and 2011. Explanatory Notes The
reader should be aware of the following policies which have been approved by
the Board of Directors of the National Association: In
filing a charge of an alleged violation of the Code of Ethics by a Realtor®, the charge must
read as an alleged violation of one or more Articles of the Code. Standards of
Practice may be cited in support of the charge. The
Standards of Practice serve to clarify the ethical obligations imposed by the
various Articles and supplement, and do not substitute for, the Case
Interpretations in Interpretations of the Code of Ethics. Modifications
to existing Standards of Practice and additional new Standards of Practice are
approved from time to time. Readers are cautioned to ensure that the most
recent publications are utilized. © 2012, National
Association of Realtors®,
All Rights Reserved Form No.
166-288 (1/12 JBK) 
© 2012 Greater Utica-Rome Board of Realtors (GURBR)
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