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Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS
®
Effective January 1, 2005
Duties to Clients and Customers
Duties to the Public
Duties to REALTORS®
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
®,
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; "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
1/04)
Standard of Practice 1-3
®,
in attempting to secure a listing, shall not deliberately mislead
the owner as to market value.
Standard of Practice 1-4
®,
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
®
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
®
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
®
, 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:
- reveal confidential information of clients; or
use confidential information of clients to the disadvantage
of clients; or
use confidential information of clients for the REALTOR®'s
advantage or the advantage of third parties unless:
- clients consent after full disclosure; or
REALTORS®
are required by court order; or
it is the intention of a client to commit a crime
and the information is necessary to prevent the crime; or
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
®
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
®
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:
- 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;
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
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:
- the REALTOR
®'s
company policies regarding cooperation;
the amount of compensation to be paid by the client;
the potential for additional or offsetting compensation from
other brokers, from the seller or landlord, or from other
parties; and
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
1/04)
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
®,
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
®
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
®
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
®,
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
®
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
®,
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
®
shall disclose the existence of accepted offers, including offers
with unresolved contingencies, to any broker seeking cooperation.
(Adopted 5/86, Amended 1/04)
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
®
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
®
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 all agreements related to real estate transactions including,
but not limited to, listing and representation agreements, purchase
contracts, and leases are in writing 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 to such agreements upon their signing or
initialing. (Amended 1/04)
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
Except as provided in Standard of Practice 10-3, REALTORS ®
shall not volunteer information regarding the racial, religious or
ethnic composition of any neighborhood nor shall they engage in
any activity which may result in panic selling. (Adopted 1/94,
Amended 1/05)
Standard of Practice 10-2
®
shall not print, display or circulate any statement or
advertisement with respect to 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, Renumbered 1/05)
Standard of Practice 10-3
When not involved in the sale or lease of a residence, REALTORS ®
may provide demographic information related to a property,
transaction or professional assignment to a party if such
demographic information is (a) deemed by the REALTOR®
to be needed to assist with or complete, in a manner consistent
with Article 10, a real estate transaction or professional
assignment and (b) is obtained or derived from a recognized,
reliable, independent, and impartial source. The source of such
information and any additions, deletions, modifications,
interpretations, or other changes shall be disclosed in reasonable
detail. (Adopted 1/05)
Standard of Practice 10-4
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, Renumbered
1/05)
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
®
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:
- identification of the subject property
date prepared
defined value or price
limiting conditions, including statements of purpose(s) and
intended user(s)
any present or contemplated interest, including the
possibility of representing the seller/landlord or
buyers/tenants
basis for the opinion, including applicable market data
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
®
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
®
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
®
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
®
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
®
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
®,
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
®
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
®
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
®
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
®
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
®
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
®
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 exclusive representation or exclusive brokerage relationship
agreements that other REALTORS®
have with clients. (Amended 1/04)
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 prospects 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 prospects 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 1/04)
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 prospects
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 1/04)
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) or from offering the same type of service
for property not subject to other brokers' exclusive agreements.
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
1/04)
Standard of Practice 16-4
®
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
®
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
®
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 prospect has retained a REALTOR® as an exclusive
representative or exclusive broker in one or more past
transactions does not preclude other REALTORS® from seeking such
prospect's future business. (Amended 1/04)
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 a representation agreement, have
an affirmative obligation to make reasonable efforts to determine
whether the prospect is subject to a current, valid exclusive
agreement to provide the same type of real estate service.
(Amended 1/04)
Standard of Practice 16-10
REALTORS®, acting as buyer or tenant representatives or brokers,
shall disclose that relationship to the seller/landlord's
representative or broker at first contact and shall provide
written confirmation of that disclosure to the seller/landlord's
representative or broker not later than execution of a purchase
agreement or lease. (Amended 1/04)
Standard of Practice 16-11
On unlisted property, REALTORS® acting as buyer/tenant
representatives or brokers shall disclose that relationship to the
seller/landlord at first contact for that buyer/tenant and shall
provide written confirmation of such disclosure to the
seller/landlord not later than execution of any purchase or lease
agreement. (Amended 1/04)
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 representatives 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 1/04)
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 representative or broker, and not
with the client, except with the consent of the client's
representative 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 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 1/04)
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 representatives 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/tenant representatives 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 1/04)
Standard of Practice 16-17
®,
acting as subagents or as buyer/tenant representatives 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 1/04)
Standard of Practice 16-18
®
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 | | |
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