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Effective January 1, 2006
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; “prospect” means a
purchaser, seller, tenant, or landlord who is not
subject to a representation relationship with the
REALTOR® or REALTOR®’s firm; “agent” means a
real estate licensee (including brokers and sales
ASSOCIATEs) acting in an agency relationship as
defined by state law or regulation; and “broker”
means a real estate licensee (including brokers
and sales ASSOCIATEs) acting as an agent or in a
legally recognized non-agency capacity. (Adopted
1/95, Amended 1/04)
• Standard of Practice 1-3
REALTORS®, in attempting to secure a listing,
shall not deliberately mislead the owner as to
market value.
• Standard of Practice 1-4
REALTORS®, when seeking to become a
buyer/tenant representative, shall not mislead
buyers or tenants as to savings or other benefits
that might be realized through use of the
REALTOR®’s services. (Amended 1/93)
• Standard of Practice 1-5
REALTORS® may represent the seller/landlord and
buyer/tenant in the same transaction only after
full disclosure to and with informed consent of
both parties. (Adopted 1/93)
• Standard of Practice 1-6
REALTORS® shall submit offers and counter-offers
objectively and as quickly as possible. (Adopted
1/93, Amended 1/95)
• Standard of Practice 1-7
When acting as listing brokers, REALTORS® shall
continue to submit to the seller/landlord all offers
and counter-offers until closing or execution of a
lease unless the seller/landlord has waived this
obligation in writing. REALTORS® shall not be
obligated to continue to market the property after
an offer has been accepted by the seller/landlord.
REALTORS® shall recommend that sellers/
landlords obtain the advice of legal counsel prior
to acceptance of a subsequent offer except where
the acceptance is contingent on the termination of
the pre-existing purchase contract or lease.
(Amended 1/93)
• Standard of Practice 1-8
REALTORS®, acting as agents or brokers of
buyers/tenants, shall submit to buyers/tenants all
offers and counter-offers until acceptance but
have no obligation to continue to show properties
to their clients after an offer has been accepted
unless otherwise agreed in writing. REALTORS®,
acting as agents or brokers of buyers/tenants,
shall recommend that buyers/tenants obtain the
advice of legal counsel if there is a question as to
whether a pre-existing contract has been
terminated. (Adopted 1/93, Amended 1/99)
• Standard of Practice 1-9
The obligation of REALTORS® to preserve
confidential information (as defined by state law)
provided by their clients in the course of any
agency relationship or non-agency relationship
recognized by law continues after termination of
agency relationships or any non-agency
relationships recognized by law. REALTORS® shall
not knowingly, during or following the
termination of professional relationships with
their clients:
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 company policies regarding
cooperation and the amount(s) of any
compensation that will be offered to subagents,
buyer/tenant agents, and/or brokers acting in
legally recognized non-agency capacities;
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;
3) any potential for listing brokers to act as
disclosed dual agents, e.g. buyer/tenant agents.
(Adopted 1/93, Renumbered 1/98, Amended
1/03)
• Standard of Practice 1-13
When entering into buyer/tenant agreements,
REALTORS® must advise potential clients of:
1) the REALTOR®’s company policies regarding
cooperation;
2) the amount of compensation to be paid by the
client;
3) the potential for additional or offsetting
compensation from other brokers, from the seller
or landlord, or from other parties;
4) any potential for the buyer/tenant
representative to act as a disclosed dual agent, e.g.
listing broker, subagent, landlord’s agent, etc.,
and
5) the possibility that sellers or sellers’
representatives may not treat the existence, terms,
or conditions of offers as confidential unless
confidentiality is required by law, regulation, or
by any confidentiality agreement between the
parties. (Adopted 1/93, Renumbered 1/98,
Amended 1/06)
• Standard of Practice 1-14
Fees for preparing appraisals or other valuations
shall not be contingent upon the amount of the
appraisal or valuation. (Adopted 1/02)
• Standard of Practice 1-15
REALTORS®, in response to inquiries from buyers
or cooperating brokers shall, with the sellers’
approval, disclose the existence of offers on the
property. Where disclosure is authorized,
REALTORS® shall also disclose whether offers
were obtained by the listing licensee, another
licensee in the listing firm, or by a cooperating
broker. (Adopted 1/03, Amended 1/06)
Article 2
REALTORS® shall avoid exaggeration,
misrepresentation, or concealment of pertinent
facts relating to the property or the transaction.
REALTORS® shall not, however, be obligated to
discover latent defects in the property, to advise
on matters outside the scope of their real estate
license, or to disclose facts which are confidential
under the scope of agency or non-agency
relationships as defined by state law. (Amended
1/00)
• Standard of Practice 2-1
REALTORS® shall only be obligated to discover
and disclose adverse factors reasonably apparent
to someone with expertise in those areas required
by their real estate licensing authority. Article 2
does not impose upon the REALTOR® the
obligation of expertise in other professional or
technical disciplines. (Amended 1/96)
• Standard of Practice 2-2
(Renumbered as Standard of Practice 1-12 1/98)
• Standard of Practice 2-3
(Renumbered as Standard of Practice 1-13 1/98)
• Standard of Practice 2-4
REALTORS® shall not be parties to the naming of a
false consideration in any document, unless it be
the naming of an obviously nominal
consideration.
• Standard of Practice 2-5
Factors defined as “non-material” by law or
regulation or which are expressly referenced in
law or regulation as not being subject to
disclosure are considered not “pertinent” for
purposes of Article 2. (Adopted 1/93)
Article 3
REALTORS® shall cooperate with other brokers
except when cooperation is not in the client’s best
interest. The obligation to cooperate does not
include the obligation to share commissions, fees,
or to otherwise compensate another broker.
(Amended 1/95)
• Standard of Practice 3-1
REALTORS®, acting as exclusive agents or brokers
of sellers/ landlords, establish the terms and
conditions of offers to cooperate. Unless
expressly indicated in offers to cooperate,
cooperating brokers may not assume that the offer
of cooperation includes an offer of compensation.
Terms of compensation, if any, shall be
ascertained by cooperating brokers before
beginning efforts to accept the offer of
cooperation. (Amended 1/99)
• Standard of Practice 3-2
REALTORS® shall, with respect to offers of
compensation to another REALTOR®, timely
communicate any change of compensation for
cooperative services to the other REALTOR® prior
to the time such REALTOR® produces an offer to
purchase/lease the property. (Amended 1/94)
• Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the
listing broker and cooperating broker from
entering into an agreement to change cooperative
compensation. (Adopted 1/94)
• Standard of Practice 3-4
REALTORS®, acting as listing brokers, have an
affirmative obligation to disclose the existence of
dual or variable rate commission arrangements
(i.e., listings where one amount of commission is
payable if the listing broker’s firm is the
procuring cause of sale/lease and a different
amount of commission is payable if the sale/lease
results through the efforts of the seller/landlord or
a cooperating broker). The listing broker shall, as
soon as practical, disclose the existence of such
arrangements to potential cooperating brokers and
shall, in response to inquiries from cooperating
brokers, disclose the differential that would result
in a cooperative transaction or in a sale/lease that
results through the efforts of the seller/landlord. If
the cooperating broker is a buyer/tenant
representative, the buyer/tenant representative
must disclose such information to their client
before the client makes an offer to purchase or
lease. (Amended 1/02)
• Standard of Practice 3-5
It is the obligation of subagents to promptly
disclose all pertinent facts to the principal’s agent
prior to as well as after a purchase or lease
agreement is executed. (Amended 1/93)
• Standard of Practice 3-6
REALTORS® shall disclose the existence of
accepted offers, including offers with unresolved
contingencies, to any broker seeking cooperation.
(Adopted 5/86, Amended 1/04)
• Standard of Practice 3-7
When seeking information from another
REALTOR® concerning property under a
management or listing agreement, REALTORS®
shall disclose their REALTOR® status and whether
their interest is personal or on behalf of a client
and, if on behalf of a client, their representational
status. (Amended 1/95)
• Standard of Practice 3-8
REALTORS® shall not misrepresent the availability
of access to show or inspect a listed property.
(Amended 11/87)
Article 4
REALTORS® shall not acquire an interest in or buy
or present offers from themselves, any member of
their immediate families, their firms or any
member thereof, or any entities in which they
have any ownership interest, any real property
without making their true position known to the
owner or the owner’s agent or broker. In selling
property they own, or in which they have any
interest, REALTORS® shall reveal their ownership
or interest in writing to the purchaser or the
purchaser’s representative. (Amended 1/00)
• Standard of Practice 4-1
For the protection of all parties, the disclosures
required by Article 4 shall be in writing and
provided by REALTORS® prior to the signing of
any contract. (Adopted 2/86)
Article 5
REALTORS® shall not undertake to provide
professional services concerning a property or its
value where they have a present or contemplated
interest unless such interest is specifically
disclosed to all affected parties.
Article 6
REALTORS® shall not accept any commission,
rebate, or profit on expenditures made for their
client, without the client’s knowledge and
consent. When recommending real estate products or
services (e.g., homeowner’s insurance, warranty
programs, mortgage financing, title insurance,
etc.), REALTORS® shall disclose to the client or
customer to whom the recommendation is made
any financial benefits or fees, other than real
estate referral fees, the REALTOR® or REALTOR®’s
firm may receive as a direct result of such
recommendation. (Amended 1/99)
• Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a
client or a customer the use of services of another
organization or business entity in which they have
a direct interest without disclosing such interest at
the time of the recommendation or suggestion.
(Amended 5/88)
Article 7
In a transaction, REALTORS® shall not accept
compensation from more than one party, even if
permitted by law, without disclosure to all parties
and the informed consent of the REALTOR®’s
client or clients. (Amended 1/93)
Article 8
REALTORS® shall keep in a special account in an
appropriate financial institution, separated from
their own funds, monies coming into their
possession in trust for other persons, such as
escrows, trust funds, clients’ monies, and other
like items.
Article 9
REALTORS®, for the protection of all parties, shall
assure whenever possible that all agreements
related to real estate transactions including, but
not limited to, listing and representation
agreements, purchase contracts, and leases are in
writing in clear and understandable language
expressing the specific terms, conditions,
obligations and commitments of the parties. A
copy of each agreement shall be furnished to each
party to such agreements upon their signing or
initialing. (Amended 1/04)
• Standard of Practice 9-1
For the protection of all parties, REALTORS® shall
use reasonable care to ensure that documents
pertaining to the purchase, sale, or lease of real
estate are kept current through the use of written
extensions or amendments. (Amended 1/93) Duties to the Public
Article 10
REALTORS® shall not deny equal professional
services to any person for reasons of race, color,
religion, sex, handicap, familial status, or national
origin. REALTORS® shall not be parties to any plan
or agreement to discriminate against a person or
persons on the basis of race, color, religion, sex,
handicap, familial status, or national origin.
(Amended 1/90) REALTORS®, in their real estate employment
practices, shall not discriminate against any
person or persons on the basis of race, color,
religion, sex, handicap, familial status, or national
origin. (Amended 1/00)
• Standard of Practice 10-1
When involved in the sale or lease of a residence,
REALTORS® shall not volunteer information
regarding the racial, religious or ethnic
composition of any neighborhood nor shall they
engage in any activity which may result in panic
selling, however, REALTORS® may provide other
demographic information. (Adopted 1/94,
Amended 1/06)
• Standard of Practice 10-2
When not involved in the sale or lease of a
residence, REALTORS® may provide demographic
information related to a property, transaction or
professional assignment to a party if such
demographic information is (a) deemed by the
REALTOR® to be needed to assist with or
complete, in a manner consistent with Article 10,
a real estate transaction or professional
assignment and (b) is obtained or derived from
a recognized, reliable, independent, and
impartial source. The source of such information
and any additions, deletions, modifications,
interpretations, or other changes shall be
disclosed in reasonable detail. (Adopted 1/05,
Renumbered 1/06)
• Standard of Practice 10-3
REALTORS® shall not print, display or circulate
any statement or advertisement with respect to
selling or renting of a property that indicates any
preference, limitations or discrimination based on
race, color, religion, sex, handicap, familial
status, or national origin. (Adopted 1/94,
Renumbered 1/05 and 1/06)
• Standard of Practice 10-4
As used in Article 10 “real estate employment
practices” relates to employees and independent
contractors providing real estate-related services
and the administrative and clerical staff directly
supporting those individuals. (Adopted 1/00,
Renumbered 1/05 and 1/06)
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 exclusive
representation or exclusive brokerage relationship
agreements that other REALTORS® have with
clients. (Amended 1/04)
• Standard of Practice 16-1
Article 16 is not intended to prohibit aggressive
or innovative business practices which are
otherwise ethical and does not prohibit
disagreements with other REALTORS® involving
commission, fees, compensation or other forms of
payment or expenses. (Adopted 1/93, Amended
1/95)
• Standard of Practice 16-2
Article 16 does not preclude REALTORS® from
making general announcements to prospects
describing their services and the terms of their
availability even though some recipients may
have entered into agency agreements or other
exclusive relationships with another REALTOR®.
A general telephone canvass, general mailing or
distribution addressed to all prospects in a given
geographical area or in a given profession,
business, club, or organization, or other
classification or group is deemed “general” for
purposes of this standard. (Amended 1/04)
Article 16 is intended to recognize as unethical
two basic types of solicitations:
First, telephone or personal solicitations of
property owners who have been identified by a
real estate sign, multiple listing compilation, or
other information service as having exclusively
listed their property with another REALTOR®; and
Second, mail or other forms of written
solicitations of prospects whose properties are
exclusively listed with another REALTOR® when
such solicitations are not part of a general mailing
but are directed specifically to property owners
identified through compilations of current
listings, “for sale” or “for rent” signs, or other
sources of information required by Article 3 and
Multiple Listing Service rules to be made
available to other REALTORS® under offers of
subagency or cooperation. (Amended 1/04)
• Standard of Practice 16-3
Article 16 does not preclude REALTORS® from
contacting the client of another broker for the
purpose of offering to provide, or entering into a
contract to provide, a different type of real estate
service unrelated to the type of service currently
being provided (e.g., property management as
opposed to brokerage) or from offering the same
type of service for property not subject to other
brokers’ exclusive agreements. However,
information received through a Multiple Listing
Service or any other offer of cooperation may not
be used to target clients of other REALTORS® to
whom such offers to provide services may be
made. (Amended 1/04)
• Standard of Practice 16-4
REALTORS® shall not solicit a listing which is
currently listed exclusively with another broker.
However, if the listing broker, when asked by the
REALTOR®, refuses to disclose the expiration date
and nature of such listing; i.e., an exclusive right
to sell, an exclusive agency, open listing, or other
form of contractual agreement between the listing
broker and the client, the REALTOR® may contact
the owner to secure such information and may
discuss the terms upon which the REALTOR®
might take a future listing or, alternatively, may
take a listing to become effective upon expiration
of any existing exclusive listing. (Amended 1/94)
• Standard of Practice 16-5
REALTORS® shall not solicit buyer/tenant
agreements from buyers/ tenants who are subject
to exclusive buyer/tenant agreements. However, if
asked by a REALTOR®, the broker refuses to
disclose the expiration date of the exclusive
buyer/tenant agreement, the REALTOR® may
contact the buyer/tenant to secure such
information and may discuss the terms upon
which the REALTOR® might enter into a future
buyer/tenant agreement or, alternatively, may
enter into a buyer/tenant agreement to become
effective upon the expiration of any existing
exclusive buyer/tenant agreement. (Adopted 1/94,
Amended 1/98)
• Standard of Practice 16-6
When REALTORS® are contacted by the client of
another REALTOR® regarding the creation of an
exclusive relationship to provide the same type of
service, and REALTORS® have not directly or
indirectly initiated such discussions, they may
discuss the terms upon which they might enter
into a future agreement or, alternatively, may
enter into an agreement which becomes effective
upon expiration of any existing exclusive
agreement. (Amended 1/98)
• Standard of Practice 16-7
The fact that a prospect has retained a REALTOR®
as an exclusive representative or exclusive broker
in one or more past transactions does not preclude
other REALTORS® from seeking such prospect’s
future business. (Amended 1/04)
• Standard of Practice 16-8
The fact that an exclusive agreement has been
entered into with a REALTOR® shall not preclude
or inhibit any other REALTOR® from entering into
a similar agreement after the expiration of the
prior agreement. (Amended 1/98)
• Standard of Practice 16-9
REALTORS®, prior to entering into a
representation agreement, have an affirmative
obligation to make reasonable efforts to
determine whether the prospect is subject to a
current, valid exclusive agreement to provide the
same type of real estate service. (Amended 1/04)
• Standard of Practice 16-10
REALTORS®, acting as buyer or tenant
representatives or brokers, shall disclose that
relationship to the seller/landlord’s representative
or broker at first contact and shall provide written
confirmation of that disclosure to the seller/
landlord’s representative or broker not later than
execution of a purchase agreement or lease.
(Amended 1/04)
• Standard of Practice 16-11
On unlisted property, REALTORS® acting as
buyer/tenant representatives or brokers shall
disclose that relationship to the seller/landlord at
first contact for that buyer/tenant and shall
provide written confirmation of such disclosure to
the seller/landlord not later than execution of any
purchase or lease agreement. (Amended 1/04)
REALTORS® shall make any request for
anticipated compensation from the seller/landlord
at first contact. (Amended 1/98)
• Standard of Practice 16-12
REALTORS®, acting as representatives or brokers
of sellers/landlords or as subagents of listing
brokers, shall disclose that relationship to
buyers/tenants as soon as practicable and shall
provide written confirmation of such disclosure to
buyers/tenants not later than execution of any
purchase or lease agreement. (Amended 1/04)
• Standard of Practice 16-13
All dealings concerning property exclusively
listed, or with buyer/tenants who are subject to an
exclusive agreement shall be carried on with the
client’s representative or broker, and not with the
client, except with the consent of the client’s
representative or broker or except where such
dealings are initiated by the client.
Before providing substantive services (such as
writing a purchase offer or presenting a CMA) to
prospects, REALTORS® shall ask prospects
whether they are a party to any exclusive
representation agreement. REALTORS® shall not
knowingly provide substantive services
concerning a prospective transaction to prospects
who are parties to exclusive representation
agreements, except with the consent of the
prospects’ exclusive representatives or at the
direction of prospects. (Adopted 1/93, Amended
1/04)
• Standard of Practice 16-14
REALTORS® are free to enter into contractual
relationships or to negotiate with sellers/
landlords, buyers/tenants or others who are not
subject to an exclusive agreement but shall not
knowingly obligate them to pay more than one
commission except with their informed consent.
(Amended 1/98)
• Standard of Practice 16-15
In cooperative transactions REALTORS® shall
compensate cooperating REALTORS® (principal
brokers) and shall not compensate nor offer to
compensate, directly or indirectly, any of the sales
licensees employed by or affiliated with other
REALTORS® without the prior express knowledge
and consent of the cooperating broker.
• Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant
representatives or brokers, shall not use the terms
of an offer to purchase/lease to attempt to modify
the listing broker’s offer of compensation to
subagents or buyer/tenant representatives or
brokers nor make the submission of an executed
offer to purchase/lease contingent on the listing
broker’s agreement to modify the offer of
compensation. (Amended 1/04)
• Standard of Practice 16-17
REALTORS®, acting as subagents or as
buyer/tenant representatives or brokers, shall not
attempt to extend a listing broker’s offer of
cooperation and/or compensation to other brokers
without the consent of the listing broker.
(Amended 1/04)
• Standard of Practice 16-18
REALTORS® shall not use information obtained
from listing brokers through offers to cooperate
made through multiple listing services or through
other offers of cooperation to refer listing
brokers’ clients to other brokers or to create
buyer/tenant relationships with listing brokers’
clients, unless such use is authorized by listing
brokers. (Amended 1/02)
• Standard of Practice 16-19
Signs giving notice of property for sale, rent,
lease, or exchange shall not be placed on property
without consent of the seller/landlord. (Amended
1/93)
• Standard of Practice 16-20
REALTORS®, prior to or after terminating their
relationship with their current firm, shall not
induce clients of their current firm to cancel
exclusive contractual agreements between the
client and that firm. This does not preclude
REALTORS® (principals) from establishing
agreements with their ASSOCIATEd licensees
governing assignability of exclusive agreements.
(Adopted 1/98)
Article 17
In the event of contractual disputes or specific
non-contractual disputes as defined in Standard of
Practice 17-4 between REALTORS® (principals)
ASSOCIATEd with different firms, arising out of
their relationship as REALTORS®, the REALTORS®
shall submit the dispute to arbitration in
accordance with the regulations of their Board or
Boards rather than litigate the matter.
In the event clients of REALTORS® wish to
arbitrate contractual disputes arising out of real
estate transactions, REALTORS® shall arbitrate
those disputes in accordance with the regulations
of their Board, provided the clients agree to be
bound by the decision.
The obligation to participate in arbitration
contemplated by this Article includes the
obligation of REALTORS® (principals) to cause
their firms to arbitrate and be bound by any
award. (Amended 1/01)
• Standard of Practice 17-1
The filing of litigation and refusal to withdraw
from it by REALTORS® in an arbitrable matter
constitutes a refusal to arbitrate. (Adopted 2/86)
• Standard of Practice 17-2
Article 17 does not require REALTORS® to
arbitrate in those circumstances when all parties
to the dispute advise the Board in writing that
they choose not to arbitrate before the Board.
(Amended 1/93)
• Standard of Practice 17-3
REALTORS®, when acting solely as principals in a
real estate transaction, are not obligated to
arbitrate disputes with other REALTORS® absent a
specific written agreement to the contrary.
(Adopted 1/96)
• Standard of Practice 17-4
Specific non-contractual disputes that are subject
to arbitration pursuant to Article 17 are:
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)
5) Where a buyer or tenant representative is
compensated by the seller or landlord, and not by
the listing broker, and the listing broker, as a
result, reduces the commission owed by the seller
or landlord and, subsequent to such actions,
claims to be the procuring cause of sale or lease.
In such cases arbitration shall be between the
listing broker and the buyer or tenant
representative and the amount in dispute is
limited to the amount of the reduction of
commission to which the listing broker agreed.
(Adopted 1/05)
The Code of Ethics was adopted in 1913.
Amended at the Annual Convention in 1924,
1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962,
1974, 1982, 1986, 1987, 1989, 1990, 1991, 1992,
1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000,
2001, 2002, 2003, 2004 and 2005.
Explanatory Notes
The reader should be aware of the following
policies which have been approved by the Board
of Directors of the National Association:
In filing a charge of an alleged violation of the
Code of Ethics by a REALTOR®, the charge must
read as an alleged violation of one or more
Articles of the Code. Standards of Practice may
be cited in support of the charge.
The Standards of Practice serve to clarify the
ethical obligations imposed by the various
Articles and supplement, and do not substitute
for, the Case Interpretations in Interpretations of
the Code of Ethics.
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.
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