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Why Use a REALTOR®?
All real estate licensees are not the same. Only real estate licensees who are members of the
NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display
the REALTOR "®" logo on the business card or other marketing and sales literature.
REALTORS® are committed to treat all parties to a transaction honestly. REALTORS®
subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge
of the process of buying and selling real estate. An independent survey reports that 84% of
home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people
experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000
income tax problem, would you attempt to deal with it without the help of a CPA? If you had a
$100,000 legal question, would you deal with it without the help of an attorney? Considering
the small upside cost and the large downside risk, it would be foolish to consider a deal in
real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons
to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial
reserves plus your borrowing capacity. If you give a REALTOR® some basic information about
your available savings, income and current debt, he or she can refer you to lenders best
qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the
property you are seeking is available but not actively advertised in the market, and it will take
some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information
about each property. Agents who are REALTORS® have access to a variety of informational
resources. REALTORS® can provide local community information on utilities, zoning. schools,
etc. There are two things you'll want to know. First, will the property provide the environment
I want for a home or investment? Second, will the property have resale value when I am ready
to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but
not limited to price, financing, terms, date of possession and often the inclusion or exclusion
of repairs and furnishings or equipment. The purchase agreement should provide a period of
time for you to complete appropriate inspections and investigations of the property before
you are bound to complete the purchase. Your agent can advise you as to which
investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending
on the area and property, this could include inspections for termites, dry rot, asbestos, faulty
structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can
assist you in finding qualified responsible professionals to do most of these investigations
and provide you with written reports. You will also want to see a preliminary report on the
title of the property. Title indicates ownership of property and can be mired in confusing
status of past owners or rights of access. The title to most properties will have some
limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company
or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in
identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything
flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is
happening in the marketplace and the price, financing, terms and condition of competing
properties. These are key factors in getting your property sold at the best price, quickly and
with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often,
your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the
salability of your property. Your REALTOR® markets your property to other real estate agents
and the public. In many markets across the country, over 50% of real estate sales are
cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your
REALTOR® acts as the marketing coordinator, disbursing information about your property to
other real estate agents through a Multiple Listing Service or other cooperative marketing
networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS®
to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a
misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS®
studies show that 82% of real estate sales are the result of agent contacts through previous
clients, referrals, friends, family and personal contacts. When a property is marketed with the
help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR®
will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without
compromising your marketing position. This initial agreement is only the beginning of a
process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR®
can help you write a legally binding, win-win agreement that will be more likely to make it
through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales
agreement and closing (or settlement), questions may arise. For example, unexpected repairs
are required to obtain financing or a cloud in the title is discovered. The required paperwork
alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively
help you resolve these issues and move the transaction to closing (or settlement).
All real estate licensees are not the same. Only real estate licensees who are members of the
NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display
the REALTOR "®" logo on the business card or other marketing and sales literature.
REALTORS® are committed to treat all parties to a transaction honestly. REALTORS®
subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge
of the process of buying and selling real estate. An independent survey reports that 84% of
home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people
experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000
income tax problem, would you attempt to deal with it without the help of a CPA? If you had a
$100,000 legal question, would you deal with it without the help of an attorney? Considering
the small upside cost and the large downside risk, it would be foolish to consider a deal in
real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons
to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial
reserves plus your borrowing capacity. If you give a REALTOR® some basic information about
your available savings, income and current debt, he or she can refer you to lenders best
qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the
property you are seeking is available but not actively advertised in the market, and it will take
some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information
about each property. Agents who are REALTORS® have access to a variety of informational
resources. REALTORS® can provide local community information on utilities, zoning. schools,
etc. There are two things you'll want to know. First, will the property provide the environment
I want for a home or investment? Second, will the property have resale value when I am ready
to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but
not limited to price, financing, terms, date of possession and often the inclusion or exclusion
of repairs and furnishings or equipment. The purchase agreement should provide a period of
time for you to complete appropriate inspections and investigations of the property before
you are bound to complete the purchase. Your agent can advise you as to which
investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending
on the area and property, this could include inspections for termites, dry rot, asbestos, faulty
structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can
assist you in finding qualified responsible professionals to do most of these investigations
and provide you with written reports. You will also want to see a preliminary report on the
title of the property. Title indicates ownership of property and can be mired in confusing
status of past owners or rights of access. The title to most properties will have some
limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company
or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in
identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything
flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is
happening in the marketplace and the price, financing, terms and condition of competing
properties. These are key factors in getting your property sold at the best price, quickly and
with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often,
your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the
salability of your property. Your REALTOR® markets your property to other real estate agents
and the public. In many markets across the country, over 50% of real estate sales are
cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your
REALTOR® acts as the marketing coordinator, disbursing information about your property to
other real estate agents through a Multiple Listing Service or other cooperative marketing
networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS®
to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a
misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS®
studies show that 82% of real estate sales are the result of agent contacts through previous
clients, referrals, friends, family and personal contacts. When a property is marketed with the
help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR®
will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without
compromising your marketing position. This initial agreement is only the beginning of a
process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR®
can help you write a legally binding, win-win agreement that will be more likely to make it
through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales
agreement and closing (or settlement), questions may arise. For example, unexpected repairs
are required to obtain financing or a cloud in the title is discovered. The required paperwork
alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively
help you resolve these issues and move the transaction to closing (or settlement).
Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2002
Preamble
Duties to Clients and Customers (Articles 1-9)
Duties to the Public (Articles 10-14)
Duties to REALTORS® (Article 15-17)
Explanatory Notes
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 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; “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 1/99)
• 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:
1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the REALTOR®’s advantage or the advantage of third parties unless:
a) clients consent after full disclosure; or
b) REALTORS® are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
d) it is necessary to defend a REALTOR® or the REALTOR®’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:
1) the REALTOR®’s general company policies regarding cooperation with and compensation to subagents, buyer/
tenant agents and/or brokers acting in legally recognized non-agency capacities;
2) the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may
represent the interests of buyers/tenants; and
3) any potential for listing brokers to act as disclosed
dual agents, e.g. buyer/tenant agents.
(Adopted 1/93, Renumbered 1/98, Amended 1/99)
• Standard of Practice 1-13
When entering into buyer/tenant agreements, REALTORS® must advise potential clients of:
1) the REALTOR®’s general company policies regarding cooperation and compensation; and
2) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent,
landlord’s agent, etc.
(Adopted 1/93, Renumbered 1/98, Amended 1/99)
• 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)
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 an accepted offer to any broker seeking cooperation. (Adopted 5/86)
• 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 agreements shall be in writing, and
shall be 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 upon their signing or
initialing. (Amended 1/95)
• 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
REALTORS® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood
and shall not engage in any activity which may result in panic selling. REALTORS® shall not print, display or circulate
any statement or advertisement with respect to the 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)
• Standard of Practice 10-2
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)
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:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended user(s)
5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect (Amended 1/01)
• 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 the agency or other exclusive
relationship recognized by law that other REALTORS® have with clients. (Amended 1/98)
• 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 prospective clients 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 prospective clients 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
1/98)
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 prospective clients 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 1/93)
• 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). 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 1/93)
• 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 client has retained a REALTOR® as an agent or in another exclusive relationship in one or more past
transactions does not preclude other REALTORS® from seeking such former client’s future business. (Amended 1/98)
• 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 an agency agreement or other exclusive relationship, have an affirmative
obligation to make reasonable efforts to determine whether the client is subject to a current, valid exclusive
agreement to provide the same type of real estate service. (Amended 1/98)
• Standard of Practice 16-10
REALTORS®, acting as agents of, or in another relationship with, buyers or tenants, shall disclose that relationship to
the seller/landlord’s agent or broker at first contact and shall provide written confirmation of that disclosure to the
seller/landlord’s agent or broker not later than execution of a purchase agreement or lease. (Amended 1/98)
• Standard of Practice 16-11
On unlisted property, REALTORS® acting as buyer/tenant agents or brokers shall disclose that relationship to the
seller/landlord at first contact for that client and shall provide written confirmation of such disclosure to the
seller/landlord not later than execution of any purchase or lease agreement.
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 agents 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 1/98)
• 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 agent or broker, and not with the client, except with the consent of the client’s
agent or broker or except where such dealings are initiated by the client. (Adopted 1/93, Amended 1/98)
• 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 agents 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’s agents 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 1/98)
• Standard of Practice 16-17
REALTORS® acting as subagents or as buyer/tenant agents 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 1/98)
• 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:
1) Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently
claims to be the procuring cause of the sale or lease. In such cases the complainant may name the first cooperating
broker as respondent and arbitration may proceed without the listing broker being named as a respondent.
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)
2) Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and
the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such
actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant
may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being
named as a respondent. 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)
3) Where a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker
reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker
claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating
broker as respondent and arbitration may proceed without the listing broker being named as a respondent.
Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating
broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be
conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the
underlying cooperative transaction. (Adopted 1/97)
4) Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or
landlord who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the
decision. In cases 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)
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
and 2001.
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.
of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2002
Preamble
Duties to Clients and Customers (Articles 1-9)
Duties to the Public (Articles 10-14)
Duties to REALTORS® (Article 15-17)
Explanatory Notes
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 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; “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 1/99)
• 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:
1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the REALTOR®’s advantage or the advantage of third parties unless:
a) clients consent after full disclosure; or
b) REALTORS® are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
d) it is necessary to defend a REALTOR® or the REALTOR®’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:
1) the REALTOR®’s general company policies regarding cooperation with and compensation to subagents, buyer/
tenant agents and/or brokers acting in legally recognized non-agency capacities;
2) the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may
represent the interests of buyers/tenants; and
3) any potential for listing brokers to act as disclosed
dual agents, e.g. buyer/tenant agents.
(Adopted 1/93, Renumbered 1/98, Amended 1/99)
• Standard of Practice 1-13
When entering into buyer/tenant agreements, REALTORS® must advise potential clients of:
1) the REALTOR®’s general company policies regarding cooperation and compensation; and
2) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent,
landlord’s agent, etc.
(Adopted 1/93, Renumbered 1/98, Amended 1/99)
• 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)
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 an accepted offer to any broker seeking cooperation. (Adopted 5/86)
• 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 agreements shall be in writing, and
shall be 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 upon their signing or
initialing. (Amended 1/95)
• 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
REALTORS® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood
and shall not engage in any activity which may result in panic selling. REALTORS® shall not print, display or circulate
any statement or advertisement with respect to the 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)
• Standard of Practice 10-2
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)
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:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended user(s)
5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect (Amended 1/01)
• 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 the agency or other exclusive
relationship recognized by law that other REALTORS® have with clients. (Amended 1/98)
• 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 prospective clients 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 prospective clients 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
1/98)
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 prospective clients 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 1/93)
• 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). 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 1/93)
• 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 client has retained a REALTOR® as an agent or in another exclusive relationship in one or more past
transactions does not preclude other REALTORS® from seeking such former client’s future business. (Amended 1/98)
• 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 an agency agreement or other exclusive relationship, have an affirmative
obligation to make reasonable efforts to determine whether the client is subject to a current, valid exclusive
agreement to provide the same type of real estate service. (Amended 1/98)
• Standard of Practice 16-10
REALTORS®, acting as agents of, or in another relationship with, buyers or tenants, shall disclose that relationship to
the seller/landlord’s agent or broker at first contact and shall provide written confirmation of that disclosure to the
seller/landlord’s agent or broker not later than execution of a purchase agreement or lease. (Amended 1/98)
• Standard of Practice 16-11
On unlisted property, REALTORS® acting as buyer/tenant agents or brokers shall disclose that relationship to the
seller/landlord at first contact for that client and shall provide written confirmation of such disclosure to the
seller/landlord not later than execution of any purchase or lease agreement.
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 agents 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 1/98)
• 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 agent or broker, and not with the client, except with the consent of the client’s
agent or broker or except where such dealings are initiated by the client. (Adopted 1/93, Amended 1/98)
• 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 agents 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’s agents 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 1/98)
• Standard of Practice 16-17
REALTORS® acting as subagents or as buyer/tenant agents 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 1/98)
• 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:
1) Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently
claims to be the procuring cause of the sale or lease. In such cases the complainant may name the first cooperating
broker as respondent and arbitration may proceed without the listing broker being named as a respondent.
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)
2) Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and
the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such
actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant
may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being
named as a respondent. 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)
3) Where a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker
reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker
claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating
broker as respondent and arbitration may proceed without the listing broker being named as a respondent.
Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating
broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be
conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the
underlying cooperative transaction. (Adopted 1/97)
4) Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or
landlord who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the
decision. In cases 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)
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
and 2001.
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.
| Sandra L. Hildebrand Cell (505) 463-0309 Text: RealtorSandra To: 85377 Office (505) 798-6300 sandra@nmrealty4u.com |
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