Code of Ethics and Standards of Practice
of the National Association of REALTORS�
Effective January 1, 2002
Preamble
Duties to Clients and Customers
(Articles 1-9)
Duties to the Public
(Articles 10-14)
Duties to REALTORS�
(Article 15-17)
Explanatory Notes
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)
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Standard of Practice 10-1
REALTORS� shall not volunteer information regarding the racial, religious
or ethnic composition of any neighborhood and shall not engage in any
activity which may result in panic selling. REALTORS� shall not print,
display or circulate any statement or advertisement with respect to the
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)
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Standard of Practice 10-2
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)
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)
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Standard of Practice 11-1
When REALTORS� 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:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended
user(s)
5) any present or contemplated interest, including the possibility of
representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect (Amended
1/01)
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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)
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Standard of Practice 11-3
When REALTORS� 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)
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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)
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Standard of Practice 12-1
REALTORS� 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)
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Standard of Practice 12-2
REALTORS� 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)
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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)
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Standard of Practice 12-4
REALTORS� 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)
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Standard of Practice 12-5
REALTORS� 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)
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Standard of Practice 12-6
REALTORS�, 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)
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Standard of Practice 12-7
Only REALTORS� 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)
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Standard of Practice 14-1
REALTORS� 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)
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Standard of Practice 14-2
REALTORS� 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)
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Standard of Practice 14-3
REALTORS� 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)
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Standard of Practice 14-4
REALTORS� 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)
Preamble
Duties to Clients and Customers
(Articles 1-9)
Duties to the Public
(Articles 10-14)
Duties to REALTORS�
(Article 15-17)
Explanatory Notes
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