National Association of Realtors®

Code of Ethics and Standards of Practice


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:
        1. clients consent after full disclosure; or
        2. REALTORS® are required by court order; or
        3. it is the intention of a client to commit a crime and the information is
          necessary to prevent the crime; or
        4. it is necessary to defend a REALTOR® or the REALTOR®’s employees
          or ASSOCIATEs against an accusation of wrongful conduct.
        5.  

      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;
        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 1/03)
  • 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)
  • Standard of Practice 1-15
    • REALTORS®, in response to inquiries from buyers or cooperating
      brokers shall, with the sellers’ approval, divulge the existence of offers
      on the property. (Adopted 1/03)

    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.

      Before providing substantive services (such as writing a purchase offer
      or presenting a CMA) to prospective purchasers, sellers, tenants or landlords
      (“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 1/03)

  • 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
    • rticle 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.  

      3. 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)
      4.  

      5. 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)
      6.  

      7. 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, 2001 and 2002.

    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.