The ethics of being a Realtor, not just a real estate agent - Part 2
By Ryan Lajoie Sponsored by: Eastern Connecticut Association of REALTORS®
In the last column you learned that a real estate agent is a Realtor® when he or she becomes a member of the National Association of REALTORS®. What sets Realtors® apart from other licensees is that they are required to adhere to a strict Code of Ethics. The Code of Ethics contains 17 articles that are divided into three sections: Duties to Clients and Customers, Duties to the Public, and Duties to Realtors®. Most of the Articles have Standards of Practice that clarify the intent of the article. The first five of the nine Duties to Clients and Customers articles were presented in the Oct. 31 article. Today's article contains the balance of the Duties to Clients and Customers Articles as well as those provisions that deal with Duties to the Public.
For a complete copy of the Code of Ethics go to http://www.easternctrealtors.com/codeof-ethics-and-standards-of-practice.html.
DUTIES TO CLIENTS AND CUSTOMERS (CONTINUED)
Article 6: Realtors® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client's knowledge and consent.
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.
Article 8: Realtors® shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients' monies, and other like items.
Article 9: Realtors®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.
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.
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.
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.
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. Visit our web site at easternctrealtors.com or our blog at ECARVoice.com.