Continued on Page 2 Click Here
Realtor® Code of Ethics
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.
Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of
their activities and to conduct their business in accordance with the tenets set forth
below.
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 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 1/04)
Standard of Practice 1-3
REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as
to market value.
Standard of Practice 1-4
REALTORS®, when seeking to become a buyer/tenant representative, shall not mislead buyers
or tenants as to savings or other benefits that might be realized through use of the
REALTOR®’s services. (Amended 1/93)
Standard of Practice 1-5
REALTORS® may represent the seller/landlord and buyer/tenant in the same transaction only
after full disclosure to and with informed consent of both parties. (Adopted 1/93)
Standard of Practice 1-6
REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.
(Adopted 1/93, Amended 1/95)
Standard of Practice 1-7
When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord
all offers and counter-offers until closing or execution of a lease unless the
seller/landlord has waived this obligation in writing. REALTORS® shall not be obligated
to continue to market the property after an offer has been accepted by the
seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of
legal counsel prior to acceptance of a subsequent offer except where the acceptance is
contingent on the termination of the pre-existing purchase contract or lease. (Amended
1/93)
Standard of Practice 1-8
REALTORS® , acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants
all offers and counter-offers until acceptance but have no obligation to continue to show
properties to their clients after an offer has been accepted unless otherwise agreed in
writing. REALTORS®, acting as agents or brokers of buyers/tenants, shall recommend that
buyers/tenants obtain the advice of legal counsel if there is a question as to whether a
pre-existing contract has been terminated. (Adopted 1/93, Amended 1/99)
Standard of Practice 1-9
The obligation of REALTORS® to preserve confidential information (as defined by state
law) provided by their clients in the course of any agency relationship or non-agency
relationship recognized by law continues after termination of agency relationships or any
non-agency relationships recognized by law. REALTORS® shall not knowingly, during or
following the termination of professional relationships with their clients: reveal
confidential information of clients; or use confidential information of clients to the
disadvantage of clients; or use confidential information of clients for the
REALTOR®’s advantage or the advantage of third parties unless: clients consent after
full disclosure; or REALTORS® are required by court order; or it is the intention of a
client to commit a crime and the information is necessary to prevent the crime; or it is
necessary to defend a REALTOR® or the REALTOR®’s employees or associates against an
accusation of wrongful conduct.
Information concerning latent material defects is not considered confidential information
under this Code of Ethics. (Adopted 1/93, Amended 1/01)
Standard of Practice 1-10
REALTORS® shall, consistent with the terms and conditions of their real estate licensure
and their property management agreement, competently manage the property of clients with
due regard for the rights, safety and health of tenants and others lawfully on the
premises. (Adopted 1/95, Amended 1/00)
Standard of Practice 1-11
REALTORS® who are employed to maintain or manage a client’s property shall exercise
due diligence and make reasonable efforts to protect it against reasonably foreseeable
contingencies and losses. (Adopted 1/95)
Standard of Practice 1-12
When entering into listing contracts, REALTORS® must advise sellers/landlords of:
the REALTOR®’s company policies regarding cooperation and the amount(s) of any
compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting
in legally recognized non-agency capacities; the fact that buyer/tenant agents or brokers,
even if compensated by listing brokers, or by sellers/landlords may represent the
interests of buyers/tenants; and any potential for listing brokers to act as disclosed
dual agents, e.g. buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)
Standard of Practice 1-13
When entering into buyer/tenant agreements, REALTORS® must advise potential clients of:
the REALTOR®’s company policies regarding cooperation; the amount of compensation to
be paid by the client; the potential for additional or offsetting compensation from other
brokers, from the seller or landlord, or from other parties; any potential for the
buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker,
subagent, landlord’s agent, etc., and the possibility that sellers or sellers'
representatives may not treat the existence, terms, or conditions of offers as
confidential unless confidentiality is required by law, regulation, or by any
confidentiality agreement between the parties. (Adopted 1/93, Renumbered 1/98, Amended
1/06)
Standard of Practice 1-14
Fees for preparing appraisals or other valuations shall not be contingent upon the amount
of the appraisal or valuation. (Adopted 1/02)
Standard of Practice 1-15
REALTORS®, in response to inquiries from buyers or cooperating brokers shall, with the
sellers’ approval, disclose the existence of offers on the property. Where disclosure
is authorized, REALTORS® shall also disclose whether offers were obtained by the listing
licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/03,
Amended 1/06))
Article 2
REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts
relating to the property or the transaction. REALTORS® shall not, however, be obligated
to discover latent defects in the property, to advise on matters outside the scope of
their real estate license, or to disclose facts which are confidential under the scope of
agency or non-agency relationships as defined by state law. (Amended 1/00)
Standard of Practice 2-1
REALTORS® shall only be obligated to discover and disclose adverse factors reasonably
apparent to someone with expertise in those areas required by their real estate licensing
authority. Article 2 does not impose upon the REALTOR® the obligation of expertise in
other professional or technical disciplines. (Amended 1/96)
Standard of Practice 2-2
(Renumbered as Standard of Practice 1-12 1/98)
Standard of Practice 2-3
(Renumbered as Standard of Practice 1-13 1/98)
Standard of Practice 2-4
REALTORS® shall not be parties to the naming of a false consideration in any document,
unless it be the naming of an obviously nominal consideration.
Standard of Practice 2-5
Factors defined as “non-material” by law or regulation or which are expressly
referenced in law or regulation as not being subject to disclosure are considered not
“pertinent” for purposes of Article 2. (Adopted 1/93)
Article 3
REALTORS® shall cooperate with other brokers except when cooperation is not in the
client’s best interest. The obligation to cooperate does not include the obligation
to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95)
Standard of Practice 3-1
REALTORS®, acting as exclusive agents or brokers of sellers/ landlords, establish the
terms and conditions of offers to cooperate. Unless expressly indicated in offers to
cooperate, cooperating brokers may not assume that the offer of cooperation includes an
offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating
brokers before beginning efforts to accept the offer of cooperation. (Amended 1/99)
Standard of Practice 3-2
REALTORS® shall, with respect to offers of compensation to another REALTOR®, timely
communicate any change of compensation for cooperative services to the other REALTOR®
prior to the time such REALTOR® produces an offer to purchase/lease the property.
(Amended 1/94)
Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from
entering into an agreement to change cooperative compensation. (Adopted 1/94)
Standard of Practice 3-4
REALTORS®, acting as listing brokers, have an affirmative obligation to disclose the
existence of dual or variable rate commission arrangements (i.e., listings where one
amount of commission is payable if the listing broker’s firm is the procuring cause
of sale/lease and a different amount of commission is payable if the sale/lease results
through the efforts of the seller/ landlord or a cooperating broker). The listing broker
shall, as soon as practical, disclose the existence of such arrangements to potential
cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose
the differential that would result in a cooperative transaction or in a sale/lease that
results through the efforts of the seller/landlord. If the cooperating broker is a
buyer/tenant representative, the buyer/tenant representative must disclose such
information to their client before the client makes an offer to purchase or lease.
(Amended 1/02)
Standard of Practice 3-5
It is the obligation of subagents to promptly disclose all pertinent facts to the
principal’s agent prior to as well as after a purchase or lease agreement is
executed. (Amended 1/93)
Standard of Practice 3-6
REALTORS® shall disclose the existence of accepted offers, including offers with
unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86, Amended 1/04)
Standard of Practice 3-7
When seeking information from another REALTOR® concerning property under a management or
listing agreement, REALTORS® shall disclose their REALTOR® status and whether their
interest is personal or on behalf of a client and, if on behalf of a client, their
representational status. (Amended 1/95)
Standard of Practice 3-8
REALTORS® shall not misrepresent the availability of access to show or inspect a listed
property. (Amended 11/87)
Article 4
REALTORS® shall not acquire an interest in or buy or present offers from themselves, any
member of their immediate families, their firms or any member thereof, or any entities in
which they have any ownership interest, any real property without making their true
position known to the owner or the owner’s agent or broker. In selling property they
own, or in which they have any interest, REALTORS® shall reveal their ownership or
interest in writing to the purchaser or the purchaser’s representative. (Amended
1/00)
Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in
writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)
Article 5
REALTORS® shall not undertake to provide professional services concerning a property or
its value where they have a present or contemplated interest unless such interest is
specifically disclosed to all affected parties.
Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for
their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance,
warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose
to the client or customer to whom the recommendation is made any financial benefits or
fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm may
receive as a direct result of such recommendation. (Amended 1/99)
Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a client or a customer the use of services of
another organization or business entity in which they have a direct interest without
disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
Article 7
In a transaction, REALTORS® shall not accept compensation from more than one party, even
if permitted by law, without disclosure to all parties and the informed consent of the
REALTOR®’s client or clients. (Amended 1/93)
Article 8
REALTORS® shall keep in a special account in an appropriate financial institution,
separated from their own funds, monies coming into their possession in trust for other
persons, such as escrows, trust funds, clients’ monies, and other like items.
Article 9
REALTORS®, for the protection of all parties, shall assure whenever possible that all
agreements related to real estate transactions including, but not limited to, listing and
representation agreements, purchase contracts, and leases are in writing in clear and
understandable language expressing the specific terms, conditions, obligations and
commitments of the parties. A copy of each agreement shall be furnished to each party to
such agreements upon their signing or initialing. (Amended 1/04)
Standard of Practice 9-1
For the protection of all parties, REALTORS® shall use reasonable care to ensure that
documents pertaining to the purchase, sale, or lease of real estate are kept current
through the use of written extensions or amendments. (Amended 1/93)
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
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, 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, 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 1/95)
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:
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
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 careful at all times to present a true picture in their advertising
and representations to the public. REALTORS® shall also ensure that their professional
status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS® is
clearly identifiable in any such advertising. (Amended 1/93)
Standard of Practice 12-1
REALTORS® may use the term “free” and similar terms in their advertising and in
other representations provided that all terms governing availability of the offered
product or service are clearly disclosed at the same time. (Amended 1/97)
Standard of Practice 12-2
REALTORS® may represent their services as “free” or without cost even if they
expect to receive compensation from a source other than their client provided that the
potential for the REALTOR® to obtain a benefit from a third party is clearly disclosed at
the same time. (Amended 1/97)
Standard of Practice 12-3
The offering of premiums, prizes, merchandise discounts or other inducements to list,
sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is
contingent on listing, selling, purchasing, or leasing through the REALTOR® making the
offer. However, REALTORS® must exercise care and candor in any such advertising or other
public or private representations so that any party interested in receiving or otherwise
benefiting from the REALTOR®’s offer will have clear, thorough, advance
understanding of all the terms and conditions of the offer. The offering of any
inducements to do business is subject to the limitations and restrictions of state law and
the ethical obligations established by any applicable Standard of Practice. (Amended 1/95)
Standard of Practice 12-4
REALTORS® shall not offer for sale/lease or advertise property without authority. When
acting as listing brokers or as subagents, REALTORS® shall not quote a price different
from that agreed upon with the seller/landlord. (Amended 1/93)
Standard of Practice 12-5
REALTORS® shall not advertise nor permit any person employed by or affiliated with them
to advertise listed property without disclosing the name of the firm. (Adopted 11/86)
Standard of Practice 12-6
REALTORS®, when advertising unlisted real property for sale/lease in which they have an
ownership interest, shall disclose their status as both owners/landlords and as REALTORS®
or real estate licensees. (Amended 1/93)
Standard of Practice 12-7
Only REALTORS® who participated in the transaction as the listing broker or cooperating
broker (selling broker) may claim to have “sold” the property. Prior to closing,
a cooperating broker may post a “sold” sign only with the consent of the listing
broker. (Amended 1/96)
Article 13
REALTORS® shall not engage in activities that constitute the unauthorized practice of law
and shall recommend that legal counsel be obtained when the interest of any party to the
transaction requires it.
Article 14
If charged with unethical practice or asked to present evidence or to cooperate in any
other way, in any professional standards proceeding or investigation, REALTORS® shall
place all pertinent facts before the proper tribunals of the Member Board or affiliated
institute, society, or council in which membership is held and shall take no action to
disrupt or obstruct such processes. (Amended 1/99)
Standard of Practice 14-1
REALTORS® shall not be subject to disciplinary proceedings in more than one Board of
REALTORS® or affiliated institute, society or council in which they hold membership with
respect to alleged violations of the Code of Ethics relating to the same transaction or
event. (Amended 1/95)
Standard of Practice 14-2
REALTORS® shall not make any unauthorized disclosure or dissemination of the allegations,
findings, or decision developed in connection with an ethics hearing or appeal or in
connection with an arbitration hearing or procedural review. (Amended 1/92)
Standard of Practice 14-3
REALTORS® shall not obstruct the Board’s investigative or professional standards
proceedings by instituting or threatening to institute actions for libel, slander or
defamation against any party to a professional standards proceeding or their witnesses
based on the filing of an arbitration request, an ethics complaint, or testimony given
before any tribunal. (Adopted 11/87, Amended 1/99)
Standard of Practice 14-4
REALTORS® shall not intentionally impede the Board’s investigative or disciplinary
proceedings by filing multiple ethics complaints based on the same event or transaction.
(Adopted 11/88)
Duties to REALTORS®
Article 15
REALTORS® shall not knowingly or recklessly make false or misleading statements about
competitors, their businesses, or their business practices. (Amended 1/92)
Standard of Practice 15-1
REALTORS® shall not knowingly or recklessly file false or unfounded ethics complaints.
(Adopted 1/00)
Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with exclusive
representation or exclusive brokerage relationship agreements that other REALTORS® have
with clients. (Amended 1/04)
Standard of Practice 16-1
Article 16 is not intended to prohibit aggressive or innovative business practices which
are otherwise ethical and does not prohibit disagreements with other REALTORS® involving
commission, fees, compensation or other forms of payment or expenses. (Adopted 1/93,
Amended 1/95)
Standard of Practice 16-2
Article 16 does not preclude REALTORS® from making general announcements to prospects
describing their services and the terms of their availability even though some recipients
may have entered into agency agreements or other exclusive relationships with another
REALTOR®. A general telephone canvass, general mailing or distribution addressed to all
prospects in a given geographical area or in a given profession, business, club, or
organization, or other classification or group is deemed “general” for purposes
of this standard. (Amended 1/04)
Article 16 is intended to recognize as unethical two basic types of solicitations:
First, telephone or personal solicitations of property owners who have been identified by
a real estate sign, multiple listing compilation, or other information service as having
exclusively listed their property with another REALTOR®; and
Second, mail or other forms of written solicitations of prospects whose properties are
exclusively listed with another REALTOR® when such solicitations are not part of a
general mailing but are directed specifically to property owners identified through
compilations of current listings, “for sale” or “for rent” signs, or
other sources of information required by Article 3 and Multiple Listing Service rules to
be made available to other REALTORS® under offers of subagency or cooperation. (Amended
1/04)
Standard of Practice 16-3
Article 16 does not preclude REALTORS® from contacting the client of another broker for
the purpose of offering to provide, or entering into a contract to provide, a different
type of real estate service unrelated to the type of service currently being provided
(e.g., property management as opposed to brokerage) or from offering the same type of
service for property not subject to other brokers’ exclusive agreements. However,
information received through a Multiple Listing Service or any other offer of cooperation
may not be used to target clients of other REALTORS® to whom such offers to provide
services may be made. (Amended 1/04)
Standard of Practice 16-4
REALTORS® shall not solicit a listing which is currently listed exclusively with another
broker. However, if the listing broker, when asked by the REALTOR®, refuses to disclose
the expiration date and nature of such listing; i.e., an exclusive right to sell, an
exclusive agency, open listing, or other form of contractual agreement between the listing
broker and the client, the REALTOR® may contact the owner to secure such information and
may discuss the terms upon which the REALTOR® might take a future listing or,
alternatively, may take a listing to become effective upon expiration of any existing
exclusive listing. (Amended 1/94)
Standard of Practice 16-5
REALTORS® shall not solicit buyer/tenant agreements from buyers/ tenants who are subject
to exclusive buyer/tenant agreements. However, if asked by a REALTOR®, the broker refuses
to disclose the expiration date of the exclusive buyer/tenant agreement, the REALTOR® may
contact the buyer/tenant to secure such information and may discuss the terms upon which
the REALTOR® might enter into a future buyer/tenant agreement or, alternatively, may
enter into a buyer/tenant agreement to become effective upon the expiration of any
existing exclusive buyer/tenant agreement. (Adopted 1/94, Amended 1/98)
Standard of Practice 16-6
When REALTORS® are contacted by the client of another REALTOR® regarding the creation of
an exclusive relationship to provide the same type of service, and REALTORS® have not
directly or indirectly initiated such discussions, they may discuss the terms upon which
they might enter into a future agreement or, alternatively, may enter into an agreement
which becomes effective upon expiration of any existing exclusive agreement. (Amended
1/98)
Standard of Practice 16-7
The fact that a prospect has retained a REALTOR® as an exclusive representative or
exclusive broker in one or more past transactions does not preclude other REALTORS® from
seeking such prospect’s future business. (Amended 1/04)
Standard of Practice 16-8
The fact that an exclusive agreement has been entered into with a REALTOR® shall not
preclude or inhibit any other REALTOR® from entering into a similar agreement after the
expiration of the prior agreement. (Amended 1/98)
Standard of Practice 16-9
REALTORS®, prior to entering into a representation agreement, have an affirmative
obligation to make reasonable efforts to determine whether the prospect is subject to a
current, valid exclusive agreement to provide the same type of real estate service.
(Amended 1/04)
Standard of Practice 16-10
REALTORS®, acting as buyer or tenant representatives or brokers, shall disclose that
relationship to the seller/landlord’s representative or broker at first contact and
shall provide written confirmation of that disclosure to the seller/landlord’s
representative or broker not later than execution of a purchase agreement or lease.
(Amended 1/04)
Standard of Practice 16-11
On unlisted property, REALTORS® acting as buyer/tenant representatives or brokers shall
disclose that relationship to the seller/landlord at first contact for that buyer/tenant
and shall provide written confirmation of such disclosure to the seller/landlord not later
than execution of any purchase or lease agreement. (Amended 1/04)
REALTORS® shall make any request for anticipated compensation from the seller/ landlord
at first contact. (Amended 1/98)
Standard of Practice 16-12
REALTORS®, acting as representatives or brokers of sellers/landlords or as subagents of
listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable
and shall provide written confirmation of such disclosure to buyers/tenants not later than
execution of any purchase or lease agreement. (Amended 1/04)
Standard of Practice 16-13
All dealings concerning property exclusively listed, or with buyer/tenants who are subject
to an exclusive agreement shall be carried on with the client’s representative or
broker, and not with the client, except with the consent of the client’s
representative or broker or except where such dealings are initiated by the client.
Before providing substantive services (such as writing a purchase offer or presenting a
CMA) to prospects, REALTORS® shall ask prospects whether they are a party to any
exclusive representation agreement. REALTORS® shall not knowingly provide substantive
services concerning a prospective transaction to prospects who are parties to exclusive
representation agreements, except with the consent of the prospects’ exclusive
representatives or at the direction of prospects. (Adopted 1/93, Amended 1/04)
Standard of Practice 16-14
REALTORS® are free to enter into contractual relationships or to negotiate with sellers/
landlords, buyers/tenants or others who are not subject to an exclusive agreement but
shall not knowingly obligate them to pay more than one commission except with their
informed consent. (Amended 1/98)
Standard of Practice 16-15
In cooperative transactions REALTORS® shall compensate cooperating REALTORS® (principal
brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of
the sales licensees employed by or affiliated with other REALTORS® without the prior
express knowledge and consent of the cooperating broker.
Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use
the terms of an offer to purchase/lease to attempt to modify the listing broker’s
offer of compensation to subagents or buyer/tenant representatives or brokers nor make the
submission of an executed offer to purchase/lease contingent on the listing broker’s
agreement to modify the offer of compensation. (Amended 1/04)
Standard of Practice 16-17
REALTORS®, acting as subagents or as buyer/tenant representatives or brokers, shall not
attempt to extend a listing broker’s offer of cooperation and/or compensation to
other brokers without the consent of the listing broker. (Amended 1/04)
Standard of Practice 16-18
REALTORS® shall not use information obtained from listing brokers through offers to
cooperate made through multiple listing services or through other offers of cooperation to
refer listing brokers’ clients to other brokers or to create buyer/tenant
relationships with listing brokers’ clients, unless such use is authorized by listing
brokers. (Amended 1/02)
Standard of Practice 16-19
Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on
property without consent of the seller/landlord. (Amended 1/93)
Standard of Practice 16-20
REALTORS®, prior to or after terminating their relationship with their current firm,
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)
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
REALTORS®, when acting solely as principals in a real estate transaction, are not
obligated to arbitrate disputes with other REALTORS® absent a specific written agreement
to the contrary. (Adopted 1/96)
Standard of Practice 17-4
Specific non-contractual disputes that are subject to arbitration pursuant to Article 17
are:
Where a listing broker has compensated a cooperating broker and another cooperating broker
subsequently claims to be the procuring cause of the sale or lease. In such cases the
complainant may name the first cooperating broker as respondent and arbitration may
proceed without the listing broker being named as a respondent. 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 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. 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 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)
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, and 2005.
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.
http://realtor.org/mempolweb.nsf/pages/code?OpenDocument
Back to Top
Team Web Real Estate Main Page
|
BUYERS SEARCH FORM <