NAR Code of Ethics

Quick Guide to the NAR Code of Ethics

The Code of Ethics addresses a Realtor’s^® duties and obligations to clients and customers, the public and other Realtors^®. The code consists of 17-points that outline the following expectations:

1. A Realtor’s^® first duty is to protect the interests of their client, and to treat all parties honestly.
2. Realtors^® shall avoid concealment or misrepresentation pertinent information in relation to the property or the transaction. Realtors^® also may not disclose confidential information.
3. Realtors^® shall cooperate with other brokers, except when the cooperation is not in the best interest of their client. Cooperation doesn’t include compensation.
4. Realtors^® must disclose any personal share or interest in a property involved in a transaction.  In other words, when interested in buying or selling a property they must make it clear that they are representing themselves not a client.
5. Realtors^® shall avoid conflicts of interest, and must make their interest known to all parties if they do provide services for a transaction in which they have a personal interest.
6. Realtors^® shall not accept a commission, rebate, a fee, or other financial benefit without disclosing it to the client.
7. Realtors^® cannot be compensated by more than one party in a transaction without making it clear to all parties.
8. Realtors^® must maintain a special account (separate from their own personal account) for escrows, client’s monies, trust funds and the like.
9. Realtors^® must assure that contracts, leases, agreements, etc. are in clear and understandable language in writing, and must be explained at the time of signing or initialing.
10. Realtors^® cannot deny professional services on the basis of race, religion, sex, family status, handicap or national origin.
11. Realtors^® cannot provide services outside of their field of competence (such as a residential realtor working in commercial real estate) without disclosing it to the client.
12. Realtors^® must adhere to truth in advertising and marketing, and must disclose their professional status in advertising.
13. Realtors^® shall not give legal advice, and shall advise clients to seek legal counsel when applicable.
14. Realtors^® shall make full disclosure of all pertinent facts if charged with unethical practice.
15. Realtors^® shall not make false or misleading statements about their competitors or their own businesses.
16. Realtors^® shall not work outside of the exclusive agreements with their clients.
17. Realtors^® agree to arbitration in the case of a violation.

 

The terms of the National Association of Realtors^® Code of Ethics are taken very seriously by the organization.  NAR exercises their oversight powers, and Realtors^® who violate the NAR Code of Ethics will face consequences that include.