Larry King
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Overview of the Code Of Ethics

All REALTORS® commit to the National Association of REALTORS® (NAR) strict Code of Ethics, which governs their dealings with clients, customers, colleagues and the general public.

A REALTOR® is a member of the National Association of REALTORS®. Not all real estate licensees are REALTORS®.

New Member and Quadrennial Code of Ethics training is a condition of NAR membership. In addition, a REALTOR® is subject to disciplinary action should a local association of REALTORS® find them in violation of the Code of Ethics.

Consumers can feel confident that the REALTOR® they work with has agreed to abide by a Code of Ethics developed with public protection in mind.

All of NAR’s 1.2 million REALTORS® have completed at least one training course on the REALTOR® Code of Ethics and Standards of Practice.

REALTORS® must take the ethics training at least once every four-year cycle to retain their NAR membership. To complete the ethics training, REALTORS® must take at least two-and-a-half hours of instruction.

All REALTORS® must know and commit to the Code of Ethics, which distinguishes REALTORS® from other real estate licensees and assures clients and customers that REALTORS® will go beyond what is required by law to earn a clients’ trust.

Few other professional organizations in the nation, if any, have put in place such rigorous ethics training requirements for their members.

NAR adopted its Code of Ethics in 1913 and was only the second trade or business group in the United States to adopt mandatory ethical standards.

The Code of Ethics is a comprehensive document spelling out the professional responsibilities by which REALTORS® are governed. Ask your REALTOR® for a copy of the Code—it is your assurance that you, as a consumer, are dealing with a professional who has your best interests in mind.

The NAR Code of Ethics contains 17 articles that outline REALTORS®’ responsibilities to clients, customers, colleagues and the general public. The basic principles include:

Duties to Clients and Customers

REALTORS® must:

• Protect and promote their client’s interests while being honest with all parties. They are required to preserve clients’ confidential information except under certain limited circumstances (e.g., where required by a court order or to prevent a crime from being committed).
• Avoid exaggerating, misrepresenting or concealing pertinent facts.
• Cooperate with other real estate professionals to advance their client’s best interests.
• Reveal their position or interest when buying or selling for themselves.
• Disclose any present or contemplated interest in any transaction to all parties.
• Avoid side deals without their client’s informed consent.
• Accept compensation from only one party, except with full disclosure and informed consent of their client.
• Keep funds of clients and customers in an escrow account.
• Ensure that transactional details are in writing.

Duties to the Public

REALTORS® must:

• Provide equal service to all clients and customers.
• Be knowledgeable and competent in the fields of practice in which they ordinarily engage.
• Obtain assistance from a knowledgeable professional or disclose any lack of expertise to their client.
• Be honest and truthful in their real estate communications and present a true picture in advertising, marketing and other public representations.

Duties to REALTORS®

REALTORS® must:

• Be truthful in their comments about other real estate professionals.
• Respect the exclusive relationships of other REALTORS®.
• Arbitrate contractual disputes with other REALTORS®, and with their clients.

This page last updated on 5/5/2013

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