| 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.
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 prospective clients describing their services and the terms of their
availability even though some recipients may have entered into agency agreements
with another REALTOR. A general telephone canvass,general mailing or distribution
addressed to all prospective clients 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.
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 prospective clients
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 1/93)
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). 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 1/93)
Standard of Practice 16-4
REALTORS 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
REALTORS shall not solicit buyer/tenant agency agreements from buyers/tenants
who are subject to exclusive buyer/tenant agency agreements. However, if
a buyer/tenant agent, when asked by a REALTOR, refuses to disclose the expiration
date of the exclusive buyer/tenant agency 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 agency agreement
or, alternatively, may enter into a buyer/tenant agency agreement to become
effective upon the expiration of any existing exclusive buyer/tenant agency
agreement. (Adopted 1/94)
Standard of Practice 16-6
When REALTORS are contacted by the client of another REALTOR regarding
the creation of an agency 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 agency
agreement or, alternatively, may enter into an agency agreement which becomes
effective upon expiration of any existing exclusive agreement. (Amended
1/93)
Standard of Practice 16-7
The fact that a client has retained a REALTOR as an agent in one or
more past transactions does not preclude other REALTORS from seeking such
former client's future business. (Amended 1/93)
Standard of Practice 16-8
The fact that an agency agreement has been entered into with a REALTOR
shall not preclude or inhibit any other REALTOR fromentering into a similar
agreement after the expiration of the prior agreement. (Amended 1/93)
Standard of Practice 16-9
REALTORS, prior to entering into an agency agreement, have an affirmative
obligation to make reasonable efforts to determine whether the client is
subject to a current, valid exclusive agreement to provide the same type
of real estate service. (Amended 1/93)
Standard of Practice 16-10
REALTORS, acting as agents of buyers or tenants, shall disclose that
relationship to the seller/landlord's agent at first contact and shall provide
written confirmation of that disclosure to the seller/landlord's agent not
later than execution of a purchase agreement or lease. (Amended 1/93)
Standard of Practice 16-11
On unlisted property, REALTORS acting as buyer/tenant agents shall disclose
that relationship to the seller/landlord at first contact for that client
and shall provide written confirmation of such disclosure to the seller/landlord
not later than execution of any purchase or lease agreement.
REALTORS shall make any request for anticipated compensation from the seller/landlord
at first contact. (Amended 1/93)
Standard of Practice 16-12
REALTORS, acting as agents 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 1/93)
Standard of Practice 16-13
All dealings concerning property exclusively listed, or with buyer/tenants
who are exclusively represented shall be carried on with the client's agent,
and not with the client, except with the consent of the client's agent.
(Adopted 1/93)
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 represented
by an exclusive agent but shall not knowingly obligate them to pay more
than one commission except with their informed consent. (Amended 1/94)
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 sub-agents or buyer/tenant agents, shall not use
the terms of an offer to purchase/lease to attempt to modify the listing
broker's offer of compensation to sub-agents or buyer's agents 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 1/93)
Standard of Practice 16-17
REALTORS acting as sub-agents, or as buyer/tenant agents 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 1/93)
Standard of Practice 16-18
REALTORS shall not use information obtained by them from the listing
broker, through offers to cooperate received through Multiple Listing Services
or other sources authorized by the listing broker, for the purpose of creating
a referral prospect to a third broker, or for creating a buyer/tenant prospect
unless such use is authorized by the listing broker. (Amended 1/93)
Standard of Practice 16-19
Signs giving notice of property for sale, rent, lease, or exchange shall
not be placed on property without consent of the seller/landlord. (Amended
1/93)
ARTICLE 17
In the event of a contractual dispute 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 1/94)
Standard of Practice 17-1
The filing of litigation and refusal to withdraw from it by REALTORS
in an arbitrable matter constitutes a refusal to arbitrate. (Adopted 2/86)
Standard of Practice 17-2
Article 17 does not require REALTORS to arbitrate in those circumstances
when all parties to the dispute advise the Board in writing that they choose
not to arbitrate before the Board. (Amended 1/93)
Standard of Practice 17-3
REALTORS, when acting solely as principals in a real estate transaction,
are not obligated to arbitrate disputes with other REALTORS absent a specific
written agreement to the contrary.
The Code of Ethics was adopted in 1913. Amended at the Annual Convention
in 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962, 1974, 1982, 1986,
1987, 1989, 1990, 1991, 1992, 1993, and 1994.
EXPLANATORY NOTES
The reader should be aware of the following policies which have been
approved by the Board of Directors of the National Association:
In filing a charge of an alleged violation of the Code of Ethics by a REALTOR,
the charge must read as an alleged violation of one or more Articles of
the Code. Standards of Practice may be cited in support of the charge.
The Standards of Practice serve to clarify the ethical obligations imposed
by the various Articles and supplement, and do not substitute for, the Case
Interpretations in Interpretations of the Code of Ethics.
Modifications to existing Standards of Practice and additional new Standards
of Practice are approved from time to time. Readers are cautioned to ensure
that the most recent publications are utilized.
*Charges of unethical conduct by members of the National Association
of Realtors are handled by the local Board of Realtors to which such member
belongs. Contact the local Board for more information about this process.*
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