CoE of the NATIONAL ASSOCIATION OF REALTORS ®, Part 1

January 10th, 2009

Let’s talk about ethics.

Realtors are held to a Code of Ethics which is a written statement of how a Realtor must conduct business. There is no wiggle room in the CoE, it is there to spell out what is expected of our behavior, and it’s there to protect consumers, customers, and clients. There’s quite a bit to it, so let’s take a look at it, bit by bit, in a series of posts, starting with the Preamble.

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 whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below. (Amended 1/07)

Straight forward enough? Is arguable that it’s simply basic human integrity, good manners, good business sense, common sense, and there’s nothing here that separates this Code of Ethics from say, your or my own personal Code of Ethics. The difference might be that property ownership, land ownership, the right of citizens to own land, is one of the most important freedoms we have. It’s what separates our government from other forms of government. The right to own property is what keeps us free. I believe that if a Realtor doesn’t quite get that, or prefers not to think about that, or doesn’t know anything about that, then they might miss out on a very crucial part of what we do- we help people establish their own freedom. I take that very very seriously and I make the assumption that my clients, customers, and consumers do as well.

I’m not sure how many posts this will take, but next up, we’ll look at the Duties to Clients and Customers.

1 Comment

  1. Dayton Ohio Real Estate | COE of the NATIONAL ASSOCIATION OF REALTORS ®, part II | TheBrickRanch.com | a conversation about where and how to live happily in Dayton Ohio says

    [...] TheBrickRanch.com a conversation about where and how to live happily in Dayton Ohio Home About Contact « COE of the NATIONAL ASSOCIATION OF REALTORS ®, Part 1       [...]

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