Real Estate and the Code of Ethics

Not all real estate licensees are Realtors, although many mistakenly use the term synonymously. There are presently more than 1.84 million active licensed real estate professionals in the United States of which 1 million are Realtors. On Shelter Island, only two agencies, my office and one other agency, are Realtors.

As a living and breathing Standard of Practice, it continues to be amended. Comprised of 17 Articles of Conduct, it includes “Duties to the Public,” “Duties to Clients and Customers” and “Duties to Realtors.”

According to the National Association of Realtors, “the term ‘Realtor’ has come to connote competency, fairness and high integrity – dedication to a lofty ideal of moral conduct in business relations. No inducement of profit and no instructions from clients can ever justify departure from this ideal.”

1.   Protect and promote your client’s interests, but be honest with all parties
2.   Avoid exaggeration, misrepresentation, concealment of pertinent facts and respect confidences under
      the scope of your agency relationship
3.   Cooperate with other real estate professionals to advance your client’s best interests
4.   When buying or selling, make your position in the transaction or interest known
5.   Disclose present or contemplated interest in any property to all parties
6.   Avoid side deals without your client’s informed consent
7.   Accept compensation from only one party, except with full disclosure and informed consent
8.   Keep the funds of clients and customers in escrow
9.   Assure, whenever possible, that transactional details are in writing
10. Provide equal service to all clients and customers
11. Be knowledgeable and competent in the fields of practice in which you ordinarily engage. Obtain
      assistance or disclose lack of experience if necessary
12. Present a true picture in your advertising and other public representations
13. Do not engage in the unauthorized practice of law
14. Be a willing participant in Code enforcement procedures
15. Ensure that your comments about other real estate professionals are truthful and not misleading
16. Respect the exclusive representation or exclusive brokerage relationship agreements that other
      Realtors have with their clients
17. Arbitrate contractual and specific non-contractual disputes with other Realtors and with your clients

As the President of the National Association of Realtors said, “As the leading advocate for homeowners and real estate investors, Realtors have been subscribing to NAR’s strict Code of Ethics as a condition of membership for more than 100 years; the code separates them from other real estate licensees. Protecting the interests of consumers demands high standards of professional conduct and training…Through the Code of Ethics Realtors are providing consumers with a promise to protect and promote their best interests throughout the entire home buying, selling or investment process.”