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Code of Ethics and Standards of
Practice
of the
National Association of Realtors®
Effective January 1, 2010
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Where the word REALTORS® is used in this Code and Preamble, it shall be deemed to include REALTOR-ASSOCIATE®s.
While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and
the law conflict, the obligations of the law must take precedence.
Preamble
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our
civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution
of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the
preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which
REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve
the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and
remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They
identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the
public or which might discredit or bring dishonor to the real estate profession. REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics
involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the
attention of the appropriate Board or Association of REALTORS®. (Amended 1/00)
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation
of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In
instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by
any personal motivation or potential advantage or gain.
The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations.
No inducement of profit and no instruction from clients ever can justify departure from this ideal. In the interpretation of this obligation, REALTORS® can take no safer guide
than that which has been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.”
Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities whether conducted personally, through associates or
others, or via technological means, and to conduct their business in accordance with the tenets set forth below. (Amended 1/07)
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Duties to Clients and Customers
Article 1
When representing a buyer,
seller, landlord, tenant, or
other client as an agent,
REALTORS®
pledge themselves to protect
and promote the interests of
their client. This
obligation to the client is
primary, but it does not
relieve REALTORS®
of their obligation to treat
all parties honestly. When
serving a buyer, seller,
landlord, tenant or other
party in a non-agency
capacity, REALTORS®
remain obligated to treat
all parties honestly.
(Amended 1/01)
Standard of
Practice 1-1
®,
when acting as
principals in a real
estate transaction,
remain obligated by the
duties imposed by the
Code of Ethics. (Amended
1/93)
Standard of Practice 1-2
The duties imposed by
the Code of Ethics
encompass all real
estate-related
activities and
transactions whether
conducted in person,
electronically, or
through any other means.
The duties the Code of
Ethics imposes are
applicable whether
REALTORS®
are acting as agents or
in legally recognized
non-agency capacities
except that any duty
imposed exclusively on
agents by law or
regulation shall not be
imposed by this Code of
Ethics on REALTORS®
acting in non-agency
capacities.
As used in this Code of
Ethics, “client” means
the person(s) or
entity(ies) with whom a
REALTOR®
or a REALTOR®’s
firm has an agency or
legally recognized
non-agency relationship;
“customer” means a party
to a real estate
transaction who receives
information, services,
or benefits but has no
contractual relationship
with the REALTOR®
or the REALTOR®’s
firm; “prospect” means a
purchaser, seller,
tenant, or landlord who
is not subject to a
representation
relationship with the
REALTOR®
or REALTOR®’s
firm; “agent” means a
real estate licensee
(including brokers and
sales associates) acting
in an agency
relationship as defined
by state law or
regulation; and “broker”
means a real estate
licensee (including
brokers and sales
associates) acting as an
agent or in a legally
recognized non-agency
capacity. (Adopted 1/95,
Amended 1/07)
Standard of Practice 1-3
®,
in attempting to secure
a listing, shall not
deliberately mislead the
owner as to market
value.
Standard of Practice 1-4
®,
when seeking to become a
buyer/tenant
representative, shall
not mislead buyers or
tenants as to savings or
other benefits that
might be realized
through use of the
REALTOR®’s
services. (Amended 1/93)
Standard of Practice 1-5
®
may represent the
seller/landlord and
buyer/tenant in the same
transaction only after
full disclosure to and
with informed consent of
both parties. (Adopted
1/93)
Standard of Practice 1-6
®
shall submit offers and
counter-offers
objectively and as
quickly as possible.
(Adopted 1/93, Amended
1/95)
Standard of Practice 1-7
When acting as listing
brokers, REALTORS ®
shall continue to submit
to the seller/landlord
all offers and
counter-offers until
closing or execution of
a lease unless the
seller/landlord has
waived this obligation
in writing. REALTORS®
shall not be obligated
to continue to market
the property after an
offer has been accepted
by the seller/landlord.
REALTORS®
shall recommend that
sellers/landlords obtain
the advice of legal
counsel prior to
acceptance of a
subsequent offer except
where the acceptance is
contingent on the
termination of the
pre-existing purchase
contract or lease.
(Amended 1/93)
Standard of Practice 1-8
®
, acting as agents or
brokers of
buyers/tenants, shall
submit to buyers/tenants
all offers and
counter-offers until
acceptance but have no
obligation to continue
to show properties to
their clients after an
offer has been accepted
unless otherwise agreed
in writing. REALTORS®,
acting as agents or
brokers of
buyers/tenants, shall
recommend that
buyers/tenants obtain
the advice of legal
counsel if there is a
question as to whether a
pre-existing contract
has been terminated.
(Adopted 1/93, Amended
1/99)
Standard of Practice 1-9
The obligation of
REALTORS ®
to preserve confidential
information (as defined
by state law) provided
by their clients in the
course of any agency
relationship or
non-agency relationship
recognized by law
continues after
termination of agency
relationships or any
non-agency relationships
recognized by law.
REALTORS®
shall not knowingly,
during or following the
termination of
professional
relationships with their
clients:
- reveal
confidential
information of
clients; or
use confidential
information of
clients to the
disadvantage of
clients; or
use confidential
information of
clients for the
REALTOR®’s
advantage or the
advantage of third
parties unless:
-
clients consent
after full
disclosure; or
REALTORS®
are required by
court order; or
it
is the intention
of a client to
commit a crime
and the
information is
necessary
to
prevent the
crime; or
it
is necessary to
defend a REALTOR®
or the REALTOR®’s
employees or
associates
against an
accusation of
wrongful
conduct.
Information concerning
latent material defects
is not considered
confidential information
under this Code of
Ethics. (Adopted 1/93,
Amended 1/01)
Standard of Practice
1-10
®
shall, consistent with
the terms and conditions
of their real estate
licensure and their
property management
agreement, competently
manage the property of
clients with due regard
for the rights, safety
and health of tenants
and others lawfully on
the premises. (Adopted
1/95, Amended 1/00)
Standard of Practice
1-11
®
who are employed to
maintain or manage a
client’s property shall
exercise due diligence
and make reasonable
efforts to protect it
against reasonably
foreseeable
contingencies and
losses. (Adopted 1/95)
Standard of Practice
1-12
When entering into
listing contracts,
REALTORS ®
must advise
sellers/landlords of:
- the
REALTOR
®’s
company policies
regarding
cooperation and the
amount(s) of any
compensation that
will be offered to
subagents,
buyer/tenant agents,
and/or brokers
acting in legally
recognized
non-agency
capacities;
the fact that
buyer/tenant agents
or brokers, even if
compensated by
listing brokers, or
by sellers/landlords
may represent the
interests of
buyers/tenants; and
any potential
for listing brokers
to act as disclosed
dual agents, e.g.
buyer/tenant agents.
(Adopted 1/93,
Renumbered 1/98,
Amended 1/03)
Standard of Practice
1-13
When entering into
buyer/tenant agreements,
REALTORS ®
must advise potential
clients of:
- the
REALTOR
®’s
company policies
regarding
cooperation;
the amount of
compensation to be
paid by the client;
the potential
for additional or
offsetting
compensation from
other brokers, from
the seller or
landlord, or from
other parties;
any potential
for the buyer/tenant
representative to
act as a disclosed
dual agent, e.g.
listing broker,
subagent, landlord’s
agent, etc., and
the possibility
that sellers or
sellers'
representatives may
not treat the
existence, terms, or
conditions of offers
as confidential
unless
confidentiality is
required by law,
regulation, or by
any confidentiality
agreement between
the parties.
(Adopted 1/93,
Renumbered 1/98,
Amended 1/06)
Standard of Practice
1-14
Fees for preparing
appraisals or other
valuations shall not be
contingent upon the
amount of the appraisal
or valuation. (Adopted
1/02)
Standard of Practice
1-15
REALTORS®, in response
to inquiries from buyers
or cooperating brokers
shall, with the sellers’
approval, disclose the
existence of offers on
the property. Where
disclosure is
authorized, REALTORS®
shall also disclose, if
asked, whether offers
were obtained by the
listing licensee,
another licensee in the
listing firm, or by a
cooperating broker.
(Adopted 1/03, Amended
1/09)
Article 2
REALTORS®
shall avoid exaggeration,
misrepresentation, or
concealment of pertinent
facts relating to the
property or the transaction.
REALTORS®
shall not, however, be
obligated to discover latent
defects in the property, to
advise on matters outside
the scope of their real
estate license, or to
disclose facts which are
confidential under the scope
of agency or non-agency
relationships as defined by
state law. (Amended 1/00)
Standard of Practice 2-1
®
shall only be obligated
to discover and disclose
adverse factors
reasonably apparent to
someone with expertise
in those areas required
by their real estate
licensing authority.
Article 2 does not
impose upon the REALTOR®
the obligation of
expertise in other
professional or
technical disciplines.
(Amended 1/96)
Standard of Practice 2-2
(Renumbered as Standard
of Practice 1-12 1/98)
Standard of Practice 2-3
(Renumbered as Standard
of Practice 1-13 1/98)
Standard of Practice 2-4
®
shall not be parties to
the naming of a false
consideration in any
document, unless it be
the naming of an
obviously nominal
consideration.
Standard of Practice 2-5
Factors defined as
“non-material” by law or
regulation or which are
expressly referenced in
law or regulation as not
being subject to
disclosure are
considered not
“pertinent” for purposes
of Article 2. (Adopted
1/93)
Article 3
REALTORS®
shall cooperate with other
brokers except when
cooperation is not in the
client’s best interest. The
obligation to cooperate does
not include the obligation
to share commissions, fees,
or to otherwise compensate
another broker. (Amended
1/95)
Standard of Practice 3-1
®,
acting as exclusive
agents or brokers of
sellers/ landlords,
establish the terms and
conditions of offers to
cooperate. Unless
expressly indicated in
offers to cooperate,
cooperating brokers may
not assume that the
offer of cooperation
includes an offer of
compensation. Terms of
compensation, if any,
shall be ascertained by
cooperating brokers
before beginning efforts
to accept the offer of
cooperation. (Amended
1/99)
Standard of Practice 3-2
Standard of Practice 3-3
Standard of Practice 3-2
does not preclude the
listing broker and
cooperating broker from
entering into an
agreement to change
cooperative
compensation. (Adopted
1/94)
Standard of Practice 3-4
®,
acting as listing
brokers, have an
affirmative obligation
to disclose the
existence of dual or
variable rate commission
arrangements (i.e.,
listings where one
amount of commission is
payable if the listing
broker’s firm is the
procuring cause of
sale/lease and a
different amount of
commission is payable if
the sale/lease results
through the efforts of
the seller/ landlord or
a cooperating broker).
The listing broker
shall, as soon as
practical, disclose the
existence of such
arrangements to
potential cooperating
brokers and shall, in
response to inquiries
from cooperating
brokers, disclose the
differential that would
result in a cooperative
transaction or in a
sale/lease that results
through the efforts of
the seller/landlord. If
the cooperating broker
is a buyer/tenant
representative, the
buyer/tenant
representative must
disclose such
information to their
client before the client
makes an offer to
purchase or lease.
(Amended 1/02)
Standard of Practice 3-5
It is the obligation of
subagents to promptly
disclose all pertinent
facts to the principal’s
agent prior to as well
as after a purchase or
lease agreement is
executed. (Amended 1/93)
Standard of Practice 3-6
®
shall disclose the
existence of accepted
offers, including offers
with unresolved
contingencies, to any
broker seeking
cooperation. (Adopted
5/86, Amended 1/04)
Standard of Practice 3-7
When seeking information
from another REALTOR ®
concerning property
under a management or
listing agreement,
REALTORS®
shall disclose their
REALTOR®
status and whether their
interest is personal or
on behalf of a client
and, if on behalf of a
client, their
representational status.
(Amended 1/95)
Standard of Practice 3-8
®
shall not misrepresent
the availability of
access to show or
inspect a listed
property. (Amended
11/87)
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)
Article 4
REALTORS®
shall not acquire an
interest in or buy or
present offers from
themselves, any member of
their immediate families,
their firms or any member
thereof, or any entities in
which they have any
ownership interest, any real
property without making
their true position known to
the owner or the owner’s
agent or broker. In selling
property they own, or in
which they have any
interest, REALTORS®
shall reveal their ownership
or interest in writing to
the purchaser or the
purchaser’s representative.
(Amended 1/00)
Standard of Practice 4-1
For the protection of
all parties, the
disclosures required by
Article 4 shall be in
writing and provided by
REALTORS ®
prior to the signing of
any contract. (Adopted
2/86)
Article 5
REALTORS®
shall not undertake to
provide professional
services concerning a
property or its value where
they have a present or
contemplated interest unless
such interest is
specifically disclosed to
all affected parties.
Article 6
REALTORS®
shall not accept any
commission, rebate, or
profit on expenditures made
for their client, without
the client’s knowledge and
consent.
When recommending real
estate products or services
(e.g., homeowner’s
insurance, warranty
programs, mortgage
financing, title insurance,
etc.), REALTORS®
shall disclose to the client
or customer to whom the
recommendation is made any
financial benefits or fees,
other than real estate
referral fees, the REALTOR®
or REALTOR®’s
firm may receive as a direct
result of such
recommendation. (Amended
1/99)
Standard of Practice 6-1
®
shall not recommend or
suggest to a client or a
customer the use of
services of another
organization or business
entity in which they
have a direct interest
without disclosing such
interest at the time of
the recommendation or
suggestion. (Amended
5/88)
Article 7
In a transaction, REALTORS®
shall not accept
compensation from more than
one party, even if permitted
by law, without disclosure
to all parties and the
informed consent of the
REALTOR®’s
client or clients. (Amended
1/93)
Article 8
REALTORS®
shall keep in a special
account in an appropriate
financial institution,
separated from their own
funds, monies coming into
their possession in trust
for other persons, such as
escrows, trust funds,
clients’ monies, and other
like items.
Article 9
REALTORS®,
for the protection of all
parties, shall assure
whenever possible that all
agreements related to real
estate transactions
including, but not limited
to, listing and
representation agreements,
purchase contracts, and
leases are in writing in
clear and understandable
language expressing the
specific terms, conditions,
obligations and commitments
of the parties. A copy of
each agreement shall be
furnished to each party to
such agreements upon their
signing or initialing.
(Amended 1/04)
Standard of Practice 9-1
For the protection of
all parties, REALTORS ®
shall use reasonable
care to ensure that
documents pertaining to
the purchase, sale, or
lease of real estate are
kept current through the
use of written
extensions or
amendments. (Amended
1/93)
Standard of Practice 9-2
When assisting or
enabling a client or
customer in establishing
a contractual
relationship (e.g.,
listing and
representation
agreements, purchase
agreements, leases,
etc.) electronically,
REALTORS ®
shall make reasonable
efforts to explain the
nature and disclose the
specific terms of the
contractual relationship
being established prior
to it being agreed to by
a contracting party.
(Adopted 1/07)
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Duties to the Public
Article 10
REALTORS®
shall not deny equal
professional services to any
person for reasons of race,
color, religion, sex,
handicap, familial status,
or national origin. REALTORS®
shall not be parties to any
plan or agreement to
discriminate against a
person or persons on the
basis of race, color,
religion, sex, handicap,
familial status, or national
origin. (Amended 1/90)
REALTORS®,
in their real estate
employment practices, shall
not discriminate against any
person or persons on the
basis of race, color,
religion, sex, handicap,
familial status, or national
origin. (Amended 1/00)
Standard of
Practice 10-1
When involved in the
sale or lease of a
residence, REALTORS ®
shall not volunteer
information regarding
the racial, religious or
ethnic composition of
any neighborhood nor
shall they engage in any
activity which may
result in panic selling,
however, REALTORS®
may provide other
demographic information.
(Adopted 1/94, Amended
1/06)
Standard of Practice
10-2
When not involved in the
sale or lease of a
residence, REALTORS ®
may provide demographic
information related to a
property, transaction or
professional assignment
to a party if such
demographic information
is (a) deemed by the
REALTOR®
to be needed to assist
with or complete, in a
manner consistent with
Article 10, a real
estate transaction or
professional assignment
and (b) is obtained or
derived from a
recognized, reliable,
independent, and
impartial source. The
source of such
information and any
additions, deletions,
modifications,
interpretations, or
other changes shall be
disclosed in reasonable
detail. (Adopted 1/05,
Renumbered 1/06)
Standard of Practice
10-3
®
shall not print, display
or circulate any
statement or
advertisement with
respect to selling or
renting of a property
that indicates any
preference, limitations
or discrimination based
on race, color,
religion, sex, handicap,
familial status, or
national origin.
(Adopted 1/94,
Renumbered 1/05 and
1/06)
Standard of Practice
10-4
As used in Article 10
“real estate employment
practices” relates to
employees and
independent contractors
providing real
estate-related services
and the administrative
and clerical staff
directly supporting
those individuals.
(Adopted 1/00,
Renumbered 1/05)
Article 11
The services which REALTORS®
provide to their clients and
customers shall conform to
the standards of practice
and competence which are
reasonably expected in the
specific real estate
disciplines in which they
engage; specifically,
residential real estate
brokerage, real property
management, commercial and
industrial real estate
brokerage, 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
1/01)
Standard of Practice
11-2
The obligations of the
Code of Ethics in
respect of real estate
disciplines other than
appraisal shall be
interpreted and applied
in accordance with the
standards of competence
and practice which
clients and the public
reasonably require to
protect their rights and
interests considering
the complexity of the
transaction, the
availability of expert
assistance, and, where
the REALTOR ®
is an agent or subagent,
the obligations of a
fiduciary. (Adopted
1/95)
Standard of Practice
11-3
®
provide consultive
services to clients
which involve advice or
counsel for a fee (not a
commission), such advice
shall be rendered in an
objective manner and the
fee shall not be
contingent on the
substance of the advice
or counsel given. If
brokerage or transaction
services are to be
provided in addition to
consultive services, a
separate compensation
may be paid with prior
agreement between the
client and REALTOR®.
(Adopted 1/96)
Standard of Practice
11-4
The competency required
by Article 11 relates to
services contracted for
between REALTORS ®
and their clients or
customers; the duties
expressly imposed by the
Code of Ethics; and the
duties imposed by law or
regulation. (Adopted
1/02)
Article 12
REALTORS®
shall be honest and truthful
in their real estate
communications and shall
present a true picture in
their advertising,
marketing, and other
representations. REALTORS®
shall ensure that their
status as real estate
professionals is readily
apparent in their
advertising, marketing, and
other representations, and
that the recipients of all
real estate communications
are, or have been, notified
that those communications
are from a real estate
professional. (Amended 1/08)
Standard of Practice
12-1
®
may use the term “free”
and similar terms in
their advertising and in
other representations
provided that all terms
governing availability
of the offered product
or service are clearly
disclosed at the same
time. (Amended 1/97)
Standard of Practice
12-2
®
may represent their
services as “free” or
without cost even if
they expect to receive
compensation from a
source other than their
client provided that the
potential for the
REALTOR®
to obtain a benefit from
a third party is clearly
disclosed at the same
time. (Amended 1/97)
Standard of Practice
12-3
The offering of
premiums, prizes,
merchandise discounts or
other inducements to
list, sell, purchase, or
lease is not, in itself,
unethical even if
receipt of the benefit
is contingent on
listing, selling,
purchasing, or leasing
through the REALTOR ®
making the offer.
However, REALTORS®
must exercise care and
candor in any such
advertising or other
public or private
representations so that
any party interested in
receiving or otherwise
benefiting from the
REALTOR®’s
offer will have clear,
thorough, advance
understanding of all the
terms and conditions of
the offer. The offering
of any inducements to do
business is subject to
the limitations and
restrictions of state
law and the ethical
obligations established
by any applicable
Standard of Practice.
(Amended 1/95)
Standard of Practice
12-4
®
shall not offer for
sale/lease or advertise
property without
authority. When acting
as listing brokers or as
subagents, REALTORS®
shall not quote a price
different from that
agreed upon with the
seller/landlord.
(Amended 1/93)
Standard of Practice
12-5
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.
(Adopted 11/86,
Amended 1/10)
Standard of Practice
12-6
®,
when advertising
unlisted real property
for sale/lease in which
they have an ownership
interest, shall disclose
their status as both
owners/landlords and as
REALTORS®
or real estate
licensees. (Amended
1/93)
Standard of Practice
12-7
®
who participated in the
transaction as the
listing broker or
cooperating broker
(selling broker) may
claim to have “sold” the
property. Prior to
closing, a cooperating
broker may post a “sold”
sign only with the
consent of the listing
broker. (Amended 1/96)
Standard of Practice
12-8
The obligation to
present a true picture
in representations to
the public includes
information presented,
provided, or displayed
on REALTORS ®’
websites. REALTORS®
shall use reasonable
efforts to ensure that
information on their
websites is current.
When it becomes apparent
that information on a
REALTOR®’s
website is no longer
current or accurate,
REALTORS®
shall promptly take
corrective action.
(Adopted 1/07)
Standard of Practice
12-9
®
firm websites shall
disclose the firm’s name
and state(s) of
licensure in a
reasonable and readily
apparent manner.
Websites of REALTORS®
and non-member licensees
affiliated with a
REALTOR®
firm shall disclose the
firm’s name and that
REALTOR®’s
or non-member licensee’s
state(s) of licensure in
a reasonable and readily
apparent manner.
(Adopted 1/07)
Standard of Practice
12-10
®’
obligation to present a
true picture in their
advertising and
representations to the
public includes the URLs
and domain names they
use, and prohibits
REALTORS®
from:
-
engaging in
deceptive or
unauthorized framing
of real estate
brokerage websites;
manipulating (e.g.,
presenting content
developed by others)
listing content in
any way that
produces a deceptive
or misleading
result; or
deceptively using
metatags, keywords
or other
devices/methods to
direct, drive, or
divert Internet
traffic, or to
otherwise mislead
consumers. (Adopted
1/07)
Standard of Practice
12-11
®
intending to share or
sell consumer
information gathered via
the Internet shall
disclose that
possibility in a
reasonable and readily
apparent manner.
(Adopted 1/07)
Standard of Practice
12-12
®
shall not:
- use
URLs or domain names
that present less
than a true picture,
or
register URLs or
domain names which,
if used, would
present less than a
true picture.
(Adopted 1/08)
Standard of Practice
12-13
The obligation to
present a true picture
in advertising,
marketing, and
representations allows
REALTORS ®
to use and display only
professional
designations,
certifications, and
other credentials to
which they are
legitimately entitled.
(Adopted 1/08)
Article 13
REALTORS®
shall not engage in
activities that constitute
the unauthorized practice of
law and shall recommend that
legal counsel be obtained
when the interest of any
party to the transaction
requires it.
Article 14
If charged with unethical
practice or asked to present
evidence or to cooperate in
any other way, in any
professional standards
proceeding or investigation,
REALTORS®
shall place all pertinent
facts before the proper
tribunals of the Member
Board or affiliated
institute, society, or
council in which membership
is held and shall take no
action to disrupt or
obstruct such processes.
(Amended 1/99)
Standard of Practice
14-1
®
shall not be subject to
disciplinary proceedings
in more than one Board
of REALTORS®
or affiliated institute,
society or council in
which they hold
membership with respect
to alleged violations of
the Code of Ethics
relating to the same
transaction or event.
(Amended 1/95)
Standard of Practice
14-2
®
shall not make any
unauthorized disclosure
or dissemination of the
allegations, findings,
or decision developed in
connection with an
ethics hearing or appeal
or in connection with an
arbitration hearing or
procedural review.
(Amended 1/92)
Standard of Practice
14-3
®
shall not obstruct the
Board’s investigative or
professional standards
proceedings by
instituting or
threatening to institute
actions for libel,
slander or defamation
against any party to a
professional standards
proceeding or their
witnesses based on the
filing of an arbitration
request, an ethics
complaint, or testimony
given before any
tribunal. (Adopted
11/87, Amended 1/99)
Standard of Practice
14-4
®
shall not intentionally
impede the Board’s
investigative or
disciplinary proceedings
by filing multiple
ethics complaints based
on the same event or
transaction. (Adopted
11/88)
|
Duties to
Realtors®
Article 15
REALTORS®
shall not
knowingly or
recklessly make
false or
misleading
statements about
competitors,
their
businesses, or
their business
practices.
(Amended 1/92)
Standard of
Practice 15-1
®
shall not
knowingly or
recklessly
file false
or unfounded
ethics
complaints.
(Adopted
1/00)
Standard of
Practice 15-2
The
obligation to
refrain from making
false or misleading
statements about
competitors,
competitors’
businesses, and
competitors’
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 1/10)
Standard of
Practice 15-3
The
obligation to
refrain from making
false or misleading
statements about
competitors,
competitors’
businesses, and
competitors’
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)
Article 16
REALTORS®
shall not engage
in any practice
or take any
action
inconsistent
with exclusive
representation
or exclusive
brokerage
relationship
agreements that
other REALTORS®
have with
clients.
(Amended 1/04)
Standard of
Practice 16-1
Article 16
is not
intended to
prohibit
aggressive
or
innovative
business
practices
which are
otherwise
ethical and
does not
prohibit
disagreements
with other
REALTORS ®
involving
commission,
fees,
compensation
or other
forms of
payment or
expenses.
(Adopted
1/93,
Amended
1/95)
Standard of
Practice 16-2
Article 16
does not
preclude
REALTORS ®
from making
general
announcements
to prospects
describing
their
services and
the terms of
their
availability
even though
some
recipients
may have
entered into
agency
agreements
or other
exclusive
relationships
with another
REALTOR®.
A general
telephone
canvass,
general
mailing or
distribution
addressed to
all
prospects in
a given
geographical
area or in a
given
profession,
business,
club, or
organization,
or other
classification
or group is
deemed
“general”
for purposes
of this
standard.
(Amended
1/04)
Article 16
is intended
to recognize
as unethical
two basic
types of
solicitations:
First,
telephone or
personal
solicitations
of property
owners who
have been
identified
by a real
estate sign,
multiple
listing
compilation,
or other
information
service as
having
exclusively
listed their
property
with another
REALTOR®;
and
Second, mail
or other
forms of
written
solicitations
of prospects
whose
properties
are
exclusively
listed with
another
REALTOR®
when such
solicitations
are not part
of a general
mailing but
are directed
specifically
to property
owners
identified
through
compilations
of current
listings,
“for sale”
or “for
rent” signs,
or other
sources of
information
required by
Article 3
and Multiple
Listing
Service
rules to be
made
available to
other
REALTORS®
under offers
of subagency
or
cooperation.
(Amended
1/04)
Standard of
Practice 16-3
Article 16
does not
preclude
REALTORS ®
from
contacting
the client
of another
broker for
the purpose
of offering
to provide,
or entering
into a
contract to
provide, a
different
type of real
estate
service
unrelated to
the type of
service
currently
being
provided
(e.g.,
property
management
as opposed
to
brokerage)
or from
offering the
same type of
service for
property not
subject to
other
brokers’
exclusive
agreements.
However,
information
received
through a
Multiple
Listing
Service or
any other
offer of
cooperation
may not be
used to
target
clients of
other
REALTORS®
to whom such
offers to
provide
services may
be made.
(Amended
1/04)
Standard of
Practice 16-4
®
shall not
solicit a
listing
which is
currently
listed
exclusively
with another
broker.
However, if
the listing
broker, when
asked by the
REALTOR®,
refuses to
disclose the
expiration
date and
nature of
such
listing;
i.e., an
exclusive
right to
sell, an
exclusive
agency, open
listing, or
other form
of
contractual
agreement
between the
listing
broker and
the client,
the REALTOR®
may contact
the owner to
secure such
information
and may
discuss the
terms upon
which the
REALTOR®
might take a
future
listing or,
alternatively,
may take a
listing to
become
effective
upon
expiration
of any
existing
exclusive
listing.
(Amended
1/94)
Standard of
Practice 16-5
®
shall not
solicit
buyer/tenant
agreements
from buyers/
tenants who
are subject
to exclusive
buyer/tenant
agreements.
However, if
asked by a
REALTOR®,
the broker
refuses to
disclose the
expiration
date of the
exclusive
buyer/tenant
agreement,
the REALTOR®
may contact
the
buyer/tenant
to secure
such
information
and may
discuss the
terms upon
which the
REALTOR®
might enter
into a
future
buyer/tenant
agreement
or,
alternatively,
may enter
into a
buyer/tenant
agreement to
become
effective
upon the
expiration
of any
existing
exclusive
buyer/tenant
agreement.
(Adopted
1/94,
Amended
1/98)
Standard of
Practice 16-6
®
are
contacted by
the client
of another
REALTOR®
regarding
the creation
of an
exclusive
relationship
to provide
the same
type of
service, and
REALTORS®
have not
directly or
indirectly
initiated
such
discussions,
they may
discuss the
terms upon
which they
might enter
into a
future
agreement
or,
alternatively,
may enter
into an
agreement
which
becomes
effective
upon
expiration
of any
existing
exclusive
agreement.
(Amended
1/98)
Standard of
Practice 16-7
The fact
that a
prospect has
retained a
REALTOR® as
an exclusive
representative
or exclusive
broker in
one or more
past
transactions
does not
preclude
other
REALTORS®
from seeking
such
prospect’s
future
business.
(Amended
1/04)
Standard of
Practice 16-8
The fact
that an
exclusive
agreement
has been
entered into
with a
REALTOR®
shall not
preclude or
inhibit any
other
REALTOR®
from
entering
into a
similar
agreement
after the
expiration
of the prior
agreement.
(Amended
1/98)
Standard of
Practice 16-9
REALTORS®,
prior to
entering
into a
representation
agreement,
have an
affirmative
obligation
to make
reasonable
efforts to
determine
whether the
prospect is
subject to a
current,
valid
exclusive
agreement to
provide the
same type of
real estate
service.
(Amended
1/04)
Standard of
Practice 16-10
REALTORS®,
acting as
buyer or
tenant
representatives
or brokers,
shall
disclose
that
relationship
to the
seller/landlord’s
representative
or broker at
first
contact and
shall
provide
written
confirmation
of that
disclosure
to the
seller/landlord’s
representative
or broker
not later
than
execution of
a purchase
agreement or
lease.
(Amended
1/04)
Standard of
Practice 16-11
On unlisted
property,
REALTORS®
acting as
buyer/tenant
representatives
or brokers
shall
disclose
that
relationship
to the
seller/landlord
at first
contact for
that
buyer/tenant
and shall
provide
written
confirmation
of such
disclosure
to the
seller/landlord
not later
than
execution of
any purchase
or lease
agreement.
(Amended
1/04)
REALTORS®
shall make
any request
for
anticipated
compensation
from the
seller/
landlord at
first
contact.
(Amended
1/98)
Standard of
Practice 16-12
REALTORS®,
acting as
representatives
or brokers
of
sellers/landlords
or as
subagents of
listing
brokers,
shall
disclose
that
relationship
to
buyers/tenants
as soon as
practicable
and shall
provide
written
confirmation
of such
disclosure
to
buyers/tenants
not later
than
execution of
any purchase
or lease
agreement.
(Amended
1/04)
Standard of
Practice 16-13
All dealings
concerning
property
exclusively
listed, or
with
buyer/tenants
who are
subject to
an exclusive
agreement
shall be
carried on
with the
client’s
representative
or broker,
and not with
the client,
except with
the consent
of the
client’s
representative
or broker or
except where
such
dealings are
initiated by
the client.
Before
providing
substantive
services
(such as
writing a
purchase
offer or
presenting a
CMA) to
prospects,
REALTORS®
shall ask
prospects
whether they
are a party
to any
exclusive
representation
agreement.
REALTORS®
shall not
knowingly
provide
substantive
services
concerning a
prospective
transaction
to prospects
who are
parties to
exclusive
representation
agreements,
except with
the consent
of the
prospects’
exclusive
representatives
or at the
direction of
prospects.
(Adopted
1/93,
Amended
1/04)
Standard of
Practice 16-14
REALTORS®
are free to
enter into
contractual
relationships
or to
negotiate
with
sellers/
landlords,
buyers/tenants
or others
who are not
subject to
an exclusive
agreement
but shall
not
knowingly
obligate
them to pay
more than
one
commission
except with
their
informed
consent.
(Amended
1/98)
Standard of
Practice 16-15
In
cooperative
transactions
REALTORS®
shall
compensate
cooperating
REALTORS®
(principal
brokers) and
shall not
compensate
nor offer to
compensate,
directly or
indirectly,
any of the
sales
licensees
employed by
or
affiliated
with other
REALTORS®
without the
prior
express
knowledge
and consent
of the
cooperating
broker.
Standard of
Practice 16-16
REALTORS®,
acting as
subagents or
buyer/tenant
representatives
or brokers,
shall not
use the
terms of an
offer to
purchase/lease
to attempt
to modify
the listing
broker’s
offer of
compensation
to subagents
or
buyer/tenant
representatives
or brokers
nor make the
submission
of an
executed
offer to
purchase/lease
contingent
on the
listing
broker’s
agreement to
modify the
offer of
compensation.
(Amended
1/04)
Standard of
Practice 16-17
®,
acting as
subagents or
as
buyer/tenant
representatives
or brokers,
shall not
attempt to
extend a
listing
broker’s
offer of
cooperation
and/or
compensation
to other
brokers
without the
consent of
the listing
broker.
(Amended
1/04)
Standard of
Practice 16-18
®
shall not
use
information
obtained
from listing
brokers
through
offers to
cooperate
made through
multiple
listing
services or
through
other offers
of
cooperation
to refer
listing
brokers’
clients to
other
brokers or
to create
buyer/tenant
relationships
with listing
brokers’
clients,
unless such
use is
authorized
by listing
brokers.
(Amended
1/02)
Standard of
Practice 16-19
Signs giving
notice of
property for
sale, rent,
lease, or
exchange
shall not be
placed on
property
without
consent of
the
seller/landlord.
(Amended
1/93)
Standard of
Practice 16-20
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 submit the
dispute to
arbitration in
accordance with
the regulations
of their Board
or Boards rather
than litigate
the matter.
In the event
clients of
REALTORS®
wish to
arbitrate
contractual
disputes arising
out of real
estate
transactions,
REALTORS®
shall arbitrate
those disputes
in accordance
with the
regulations of
their Board,
provided the
clients agree to
be bound by the
decision.
The obligation
to participate
in arbitration
contemplated by
this Article
includes the
obligation of
REALTORS®
(principals) to
cause their
firms to
arbitrate and be
bound by any
award. (Amended
1/01)
Standard of
Practice 17-1
The filing
of
litigation
and refusal
to withdraw
from it by
REALTORS ®
in an
arbitrable
matter
constitutes
a refusal to
arbitrate.
(Adopted
2/86)
Standard of
Practice 17-2
Article 17
does not
require
REALTORS ®
to arbitrate
in those
circumstances
when all
parties to
the dispute
advise the
Board in
writing that
they choose
not to
arbitrate
before the
Board.
(Amended
1/93)
Standard of
Practice 17-3
®,
when acting
solely as
principals
in a real
estate
transaction,
are not
obligated to
arbitrate
disputes
with other
REALTORS®
absent a
specific
written
agreement to
the
contrary.
(Adopted
1/96)
Standard of
Practice 17-4
Specific
non-contractual
disputes
that are
subject to
arbitration
pursuant to
Article 17
are:
- Where a
listing
broker
has
compensated
a
cooperating
broker
and
another
cooperating
broker
subsequently
claims
to be
the
procuring
cause of
the sale
or
lease.
In such
cases
the
complainant
may name
the
first
cooperating
broker
as
respondent
and
arbitration
may
proceed
without
the
listing
broker
being
named as
a
respondent.
When
arbitration
occurs
between
two (or
more)
cooperating
brokers
and
where
the
listing
broker
is not a
party,
the
amount
in
dispute
and the
amount
of any
potential
resulting
award is
limited
to the
amount
paid to
the
respondent
by the
listing
broker
and any
amount
credited
or paid
to a
party to
the
transaction
at the
direction
of the
respondent.
Alternatively,
if the
complaint
is
brought
against
the
listing
broker,
the
listing
broker
may name
the
first
cooperating
broker
as a
third-party
respondent.
In
either
instance
the
decision
of the
hearing
panel as
to
procuring
cause
shall be
conclusive
with
respect
to all
current
or
subsequent
claims
of the
parties
for
compensation
arising
out of
the
underlying
cooperative
transaction.
(Adopted
1/97,
Amended
1/07)
Where a
buyer or
tenant
representative
is
compensated
by the
seller
or
landlord,
and not
by the
listing
broker,
and the
listing
broker,
as a
result,
reduces
the
commission
owed by
the
seller
or
landlord
and,
subsequent
to such
actions,
another
cooperating
broker
claims
to be
the
procuring
cause of
sale or
lease.
In such
cases
the
complainant
may name
the
first
cooperating
broker
as
respondent
and
arbitration
may
proceed
without
the
listing
broker
being
named as
a
respondent.
When
arbitration
occurs
between
two (or
more)
cooperating
brokers
and
where
the
listing
broker
is not a
party,
the
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
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
and 2009.
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
|
© 2010,
National Association of
Realtors®, All
Rights Reserved
Form No. 166-288 (12/09) |
