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CODE OF ETHICS
AND STANDARDS OF PRACTICE OF THE NATIONAL ASSOCIATION OF REALTORS®
EFFECTIVE JANUARY 1, 1997
WHERE THE WORD REALTORS® IS USED IN THIS CODE AND PREAMBLE, IT SHALL BE DEEMED TO INCLUDE REALTOR®-ASSOCIATES.
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 PRECEDENT.
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.
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 can ever 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.
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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 of absolute fidelity to the
client's interests is primary, but it does not relieve Realtors® or their obligations 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 1/93)
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 the agency duties owed to their clients. (Amended 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)
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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.
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 1/91)
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
When acting as agents, Realtors® shall not accept any commission, rebate, or profit on expenditures
made for their principal, without the principal's knowledge and consent. (Amended 1/92)
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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)
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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)
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)
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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)
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 a
disciplinary 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 1/90)
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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)
Article 16
Realtors® shall not engage in any practice or take any action inconsistent with the agency of other
Realtors®.
Article 17
In the event of a contractual disputes or specific non-contractual disputes as defined in Standard of
Practice 17-4 between Realtors® 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. (Amended 1/97)
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Realtor® - is a registered mark which identifies a professional in real estate who subscribes to a
strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS® .
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