OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Friday

May 24, 2013

Law & Ethics: Ethics Articles

The Code of Ethics: A Living Document

Publish Date: Tue, 01/01/2002

During 2001, four clarifying changes were made to the Code to enhance the protection it affords consumers and to increase its value as Realtors®’ pathway to professionalism.

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Salesperson Ignored Duty to Client

Publish Date: Sat, 12/01/2001

As dual agents, you both represent the buyer and the seller. Unless the state specifies otherwise, a dual agent can legally contact either client, as the buyer and the seller are the clients of either agent.

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Broker Must Pay Buyer's Rep

Publish Date: Thu, 11/01/2001

Under the Model Rules and Regulations of MLS, the listing broker’s offer of compensation could be paraphrased as, “I, listing broker, promise to pay you, cooperating broker, x percent of cooperative compensation if you become the procuring cause of the sale.” The offer isn’t “I promise to pay you if I collect enough from the seller.”

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May Buyer's Rep Contact a Seller?

Publish Date: Sat, 09/01/2001

After making every reasonable effort to contact a listing agent and getting no response, does a buyer’s agent have the right to contact a seller to schedule a showing?

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Client Interference is Unethical

Publish Date: Wed, 08/01/2001

The Standard says a REALTOR® should have no dealings with another REALTOR®‘s client--and this applies when the client is a relocation company--unless the other REALTORS® gives permission or the dealings are initiated by the client.

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Get Management Agreements in Writing

Publish Date: Sun, 07/01/2001

The NAR Code of Ethics requires 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.” In addition, Standard of Practice 9-1 requires that the agreements be kept current through written extensions or amendments.

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Check Legality of Incentive

Publish Date: Fri, 06/01/2001

Seminar offer must abide by law and be advertised ethically.

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Representing Buyer After Showing

Publish Date: Sun, 04/01/2001

Agency and compensation are often thought of as going together when, in fact, they are two separate issues.

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Who 'Owns' Walk-in Prospects?

Publish Date: Thu, 03/01/2001

The Code of Ethics deal with associates who leave a company and assume they can take listings and buyers under exclusive agreements with them. The Code prohibits REALTORS® from inducing clients of their current company to cancel exclusive contractual agreements between clients and the company.

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High List Prices are Misleading

Publish Date: Thu, 02/01/2001

When we act in an agency capacity, sellers (and buyers, too) rely on us to protect and promote their interests. That’s the basis of Article 1 of our Code of Ethics. Moreover, Standard of Practice 1-3 of the Code prohibits us from “deliberately misleading the owner as to market value” when trying to secure a listing.

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