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A Realtors Code Of Ethics Article 1

by Chance Gates (writer), Reno, March 20, 2009

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Article 1 Of A Realtors Duties To A Client

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 imposed by the Code of Ethics encompass all real estate-related activities and transactions whether conducted in person, electronically, or through any other means.

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 1/07)

·  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; 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 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, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/03, Amended 1/09))



About the Writer

Chance Gates is a writer for BrooWaha. For more information, visit the writer's website.
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4 comments on A Realtors Code Of Ethics Article 1

Log In To Vote   Score: 8
By Lady D on March 20, 2009 at 11:12 pm

Ok, well so what happened, were the realtors looking the other way when bad mortgages were being written. As I write this it is still happening, by corrupt loan agencies. Is it ok to make sale even if you know the truth about what is going on.

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Log In To Vote   Score: 7
By Edward on March 21, 2009 at 02:31 pm
Lady D is correct.  This Realtor Chance Gates did this neatly done copy and paste from the National Association of Realtors’ website.  The words here are high and mighty but Realtors obviously fail to follow them, or condemn or punish those that fail to follow them.  This Realtor Chance Gates has not once condemned his fellow Realtors that I have read here in Craig’s exposes that failed to follow this Code of Ethics. How about some walk the talk here Realtor Chance Gates?  So Realtor Chance Gates, do you have a real estate degree?  Do you have an opinion for why Realtors don’t support a real estate degree for Realtors?  How long have you had your real estate license Realtor Chance Gates?  How many real estate transactions have you closed Realtor Chance Gates?  Where are your testimonials from satisfied clients Realtor Chance Gates?  Do you own your own home Realtor Chance Gates?  Do you own a rental or twenty Realtor Chance Gates?  Why haven’t you condemned these Realtor Fraudsters exposed here Realtor Chance Gates?
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Log In To Vote   Score: 1
By Ripper on May 19, 2009 at 01:22 am

I love it, way to go chance.  Don't stoop down to their level. 

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Log In To Vote   Score: 0
By Carol Young on September 27, 2009 at 07:09 pm

A Realtors Code Of Ethics Article 1

ok it's been 6 months since this Article 1.  Where's Article 2?

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