Promoting the election of pro-REALTOR candidates across the United States. (Adopted 1/93, Amended 1/95), 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. America's largest trade association, representing 1.5 million+ members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries. 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. The first Code of Ethics was based on license laws. (Adopted 1/96). All Rights Reserved. (Adopted 1/98, Amended 1/10). Correct! We're committed to your privacy. 12. (Adopted 1/05), 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) REALTORs association, in instances where the respondent(s) REALTORs association determines that an arbitrable issue exists. Entertaining and motivating original stories to help move your visions forward. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. c. non-exclusive relationships other REALTORS have with customers. When entering into buyer/tenant agreements, REALTORS must advise potential clients of: 1) the REALTORs 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, landlords agent, etc. Article 2 does not impose upon the REALTOR the obligation of expertise in other professional or technical disciplines. 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. (Amended 1/95), REALTORS, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. I'm there to direct. b. indicates the all-encompassing nature of the real estate business. (Amended 1/96), The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTORS websites. ; and, 5) 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. Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. (Amended 1/07), 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. For more information, check out our, The Realtor Code of Ethics: What It Is and How to Apply It. 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. c. 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. He was honest, but there went Magua's $12,000 commission. REALTORS shall not deny equal professional services to any person for reasons of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. code Its 17 articles provide standards for conduct with clients and customers, the public, and other Realtors. REALTORS shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. The actual ethical requirement is stipulated in Article 12 of the Code of Ethics and Standards of Practice of the National Association of REALTORS, which states that "REALTORS shall also ensure that their professional status (e.g. without disclosing the name of that REALTORs firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures. According to the Code, REALTORS are expected to respect the (D) exclusive connections that other REALTORS have with their clients. It is accurate that licensees may typically trust the seller's statements. (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. The Virginia Residential Property Disclosure Act, as amended July 1, 2020, (the Act) governs required disclosures in Virginia real estate transactions. broker, appraiser, property manager, etc.) (Amended 1/93). It was initially drafted for quote "Real Estate Men." The Code requires that REALTORS respect the exclusive representation or exclusive brokerage relationship