By Vicki Trapp, AHWD, ASP, CRS, GRI, SRES, SRS
President, Greater Chattanooga Association of REALTORS®
You’ve seen the commercials from the National Association of REALTORS® informing the public that REALTORS® are bound to a strict Code of Ethics. It is adherence to the Code that sets apart REALTORS® from those that simply have a real estate license.
The REALTOR® Code of Ethics was adopted in 1913, and since that time, the Code has been amended approximately 45 times. The Code is the standard to which all REALTORS® are held. As the real estate industry changes, so does the Code. Take, for example the Code in 1913. We had no clue about the world wide web and had never heard terms such as “URL” and “metatag.” Now those words are part of our everyday language, and today’s Code of Ethics make reference to them. Who knows how we will be conducting business five, ten or twenty years for now, but rest assured the living, breathing document that is the Code will reflect whatever that future real estate environment happens to be.
Currently, the Code includes 17 Articles and numerous Standards of Practice that outline the duties REALTORS® owe to clients and customers, to the public and to REALTORS® and competitors. The most recent changes to the Code went into effect on January 1 and cover a variety of topics.
Article 3 addresses the spirit of cooperation among competing REALTORS®. That obligation to cooperate does not include the obligation to share commissions with a cooperating broker; however, this Article does provide guidance on how such communications should occur. As of January 1, Standard of Practice 3-2 now provides that “After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction.” This added language reinforces to REALTORS® their obligation to each other communicate regarding compensation. Also with this change to the Code, the expectation is that REALTORS® will not be distracted by commission changes and will remain focused on serving their clients.
Article 10 tracks closely with the federal fair housing laws; however, the Code includes additional classes not defined in the federal law. REALTORS® are prohibited from denying equal professional services on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation – and most recently added, gender identity. This latest addition to our Code demonstrates REALTORS® all-inclusive support of fair housing opportunities for all who pursue the dream of home ownership. Diverse communities make strong communities.
Article 11 requires REALTORS® to practice in the field in which they are competent. The change for this year is to Standard of Practice 11-1, which now further clarifies and requires certain disclosures when preparing an opinion of value or price. In addition to providing the date prepare, the defined value or price and any current or contemplated interest in the property themselves, REALTORS® must disclose when and if a physical inspection of the property’s interior and exterior was conducted and whether the REALTOR® has any conflicts of interest.
From time to time there may be a question or concern about a potential violation of the Code of Ethics. When such a scenario arises, consumers and REALTORS® are encouraged to contact the Association and discuss the dispute resolution options available as benefit to our members and their clients and customers. Enforcing of the Code is a matter the Association takes very seriously. And we have procedures in place to ensure due process to both the Complainant and Respondent. For more information on dispute resolution, please visit the Member Services section.