of the NATIONAL ASSOCIATION OF REALTORS®
Effective January 1, 2006
Where the word REALTORS® is used in this Code and Preamble, it shall be
deemed to include REALTOR-ASSOCIATE®s.
While the Code of Ethics establishes obligations that may be higher than those
mandated by law, in any instance where the Code of Ethics and the law conflict,
the obligations of the law must take precedence.
Preamble
Under all is the land. Upon its wise utilization and widely allocated ownership
depend the survival and growth of free institutions and of our civilization.
REALTORS® should recognize that the interests of the nation and its citizens
require the highest and best use of the land and the widest distribution of land
ownership. They require the creation of adequate housing, the building of
functioning cities, the development of productive industries and farms, and the
preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They
impose grave social responsibility and a patriotic duty to which REALTORS®
should dedicate themselves, and for which they should be diligent in preparing
themselves. REALTORS®, therefore, are zealous to maintain and improve the
standards of their calling and share with their fellow REALTORS® a common
responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the
public, and each other, REALTORS® continuously strive to become and remain
informed on issues affecting real estate and, as knowledgeable professionals, they
willingly share the fruit of their experience and study with others. They identify and
take steps, through enforcement of this Code of Ethics and by assisting
appropriate regulatory bodies, to eliminate practices which may damage the public
or which might discredit or bring dishonor to the real estate profession.
REALTORS® having direct personal knowledge of conduct that may violate the
Code of Ethics involving misappropriation of client or customer funds or property,
willful discrimination, or fraud resulting in substantial economic harm, bring such
matters to the attention of the appropriate Board or Association of REALTORS®.
(Amended 1/00)
Realizing that cooperation with other real estate professionals promotes the best
interests of those who utilize their services, REALTORS® urge exclusive
representation of clients; do not attempt to gain any unfair advantage over their
competitors; and they refrain from making unsolicited comments about other
practitioners. In instances where their opinion is sought, or where REALTORS®
believe that comment is necessary, their opinion is offered in an objective,
professional manner, uninfluenced by any personal motivation or potential
advantage or gain.
The term REALTOR® has come to connote competency, fairness, and high
integrity resulting from adherence to a lofty ideal of moral conduct in business
relations. No inducement of profit and no instruction from clients ever can justify
departure from this ideal.
In the interpretation of this obligation, REALTORS® can take no safer guide than
that which has been handed down through the centuries, embodied in the Golden
Rule, “Whatsoever ye would that others should do to you, do ye even so to them.”
Accepting this standard as their own, REALTORS® pledge to observe its spirit in
all of their activities and to conduct their business in accordance with the tenets
set forth below.
Duties to Clients and Customers
Article 1
When representing a buyer, seller, landlord, tenant, or other client as an agent,
REALTORS® pledge themselves to protect and promote the interests of their
client. This obligation to the client is primary, but it does not relieve REALTORS®
of their obligation to treat all parties honestly. When serving a buyer, seller,
landlord, tenant or other party in a non-agency capacity, REALTORS® remain
obligated to treat all parties honestly. (Amended 1/01)
• Standard of Practice 1-1
REALTORS®, when acting as principals in a real estate transaction, remain
obligated by the duties imposed by the Code of Ethics. (Amended 1/93)
• Standard of Practice 1-2
The duties the Code of Ethics imposes are applicable whether REALTORS® are
acting as agents or in legally recognized non-agency capacities except that any
duty imposed exclusively on agents by law or regulation shall not be imposed by
this Code of Ethics on REALTORS® acting in non-agency capacities.
As used in this Code of Ethics, “client” means the person(s) or entity(ies) with
whom a REALTOR® or a REALTOR®’s firm has an agency or legally recognized
non-agency relationship; “customer” means a party to a real estate transaction
who receives information, services, or benefits but has no contractual relationship
with the REALTOR® or the REALTOR®’s firm; “prospect” means a purchaser,
seller, tenant, or landlord who is not subject to a representation relationship with
the REALTOR® or REALTOR®’s firm; “agent” means a real estate licensee
(including brokers and sales ASSOCIATEs) acting in an agency relationship as
defined by state law or regulation; and “broker” means a real estate licensee
(including brokers and sales ASSOCIATEs) acting as an agent or in a legally
recognized non-agency capacity. (Adopted 1/95, Amended 1/04)
• Standard of Practice 1-3
REALTORS®, in attempting to secure a listing, shall not deliberately mislead the
owner as to market value.
• Standard of Practice 1-4
REALTORS®, when seeking to become a buyer/tenant representative, shall not
mislead buyers or tenants as to savings or other benefits that might be realized
through use of the REALTOR®’s services. (Amended 1/93)
• Standard of Practice 1-5
REALTORS® may represent the seller/landlord and buyer/tenant in the same
transaction only after full disclosure to and with informed consent of both parties.
(Adopted 1/93)
• Standard of Practice 1-6
REALTORS® shall submit offers and counter-offers objectively and as quickly as
possible. (Adopted 1/93, Amended 1/95)
• Standard of Practice 1-7
When acting as listing brokers, REALTORS® shall continue to submit to the
seller/landlord all offers and counter-offers until closing or execution of a lease
unless the seller/landlord has waived this obligation in writing. REALTORS® shall
not be obligated to continue to market the property after an offer has been
accepted by the seller/landlord. REALTORS® shall recommend that sellers/
landlords obtain the advice of legal counsel prior to acceptance of a subsequent
offer except where the acceptance is contingent on the termination of the pre-
existing purchase contract or lease. (Amended 1/93)
• Standard of Practice 1-8
REALTORS®, acting as agents or brokers of buyers/tenants, shall submit to
buyers/tenants all offers and counter-offers until acceptance but have no
obligation to continue to show properties to their clients after an offer has been
accepted unless otherwise agreed in writing. REALTORS®, acting as agents or
brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice
of legal counsel if there is a question as to whether a pre-existing contract has
been terminated. (Adopted 1/93, Amended 1/99)
• Standard of Practice 1-9
The obligation of REALTORS® to preserve confidential information (as defined by
state law) provided by their clients in the course of any agency relationship or non-
agency relationship recognized by law continues after termination of agency
relationships or any non-agency relationships recognized by law. REALTORS®
shall not knowingly, during or following the termination of professional relationships
with their clients:
1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the REALTOR®’s advantage or the
advantage of third parties unless:
a) clients consent after full disclosure; or
b) REALTORS® are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary
to prevent the crime; or
d) it is necessary to defend a REALTOR® or the REALTOR®’s employees or
ASSOCIATEs against an accusation of wrongful conduct.
Information concerning latent material defects is not considered confidential
information under this Code of Ethics. (Adopted 1/93, Amended 1/01)
• Standard of Practice 1-10
REALTORS® shall, consistent with the terms and conditions of their real estate
licensure and their property management agreement, competently manage the
property of clients with due regard for the rights, safety and health of tenants and
others lawfully on the premises. (Adopted 1/95, Amended 1/00)
• Standard of Practice 1-11
REALTORS® who are employed to maintain or manage a client’s property shall
exercise due diligence and make reasonable efforts to protect it against
reasonably foreseeable contingencies and losses. (Adopted 1/95)
• Standard of Practice 1-12
When entering into listing contracts, REALTORS® must advise sellers/landlords of:
1) the REALTOR®’s company policies regarding cooperation and the amount(s) of
any compensation that will be offered to subagents, buyer/tenant agents, and/or
brokers acting in legally recognized non-agency capacities;
2) the fact that buyer/tenant agents or brokers, even if compensated by listing
brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
3) any potential for listing brokers to act as disclosed dual agents, e.g.
buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)
• Standard of Practice 1-13
When entering into buyer/tenant agreements, REALTORS® must advise potential
clients of:
1) the REALTOR®’s company policies regarding cooperation;
2) the amount of compensation to be paid by the client;
3) the potential for additional or offsetting compensation from other brokers, from
the seller or landlord, or from other parties;
4) any potential for the buyer/tenant representative to act as a disclosed dual
agent, e.g. listing broker, subagent, landlord’s agent, etc., and
5) the possibility that sellers or sellers’ representatives may not treat the existence,
terms, or conditions of offers as confidential unless confidentiality is required by
law, regulation, or by any confidentiality agreement between the parties. (Adopted
1/93, Renumbered 1/98, Amended 1/06)
• Standard of Practice 1-14
Fees for preparing appraisals or other valuations shall not be contingent upon the
amount of the appraisal or valuation. (Adopted 1/02)
• Standard of Practice 1-15
REALTORS®, in response to inquiries from buyers or cooperating brokers shall,
with the sellers’ approval, disclose the existence of offers on the property. Where
disclosure is authorized, REALTORS® shall also disclose whether offers were
obtained by the listing licensee, another licensee in the listing firm, or by a
cooperating broker. (Adopted 1/03, Amended 1/06)
Article 2
REALTORS® shall avoid exaggeration, misrepresentation, or concealment of
pertinent facts relating to the property or the transaction. REALTORS® shall not,
however, be obligated to discover latent defects in the property, to advise on
matters outside the scope of their real estate license, or to disclose facts which are
confidential under the scope of agency or non-agency relationships as defined by
state law. (Amended 1/00)
• Standard of Practice 2-1
REALTORS® shall only be obligated to discover and disclose adverse factors
reasonably apparent to someone with expertise in those areas required by their
real estate licensing authority. Article 2 does not impose upon the REALTOR® the
obligation of expertise in other professional or technical disciplines. (Amended
1/96)
• Standard of Practice 2-2
(Renumbered as Standard of Practice 1-12 1/98)
• Standard of Practice 2-3
(Renumbered as Standard of Practice 1-13 1/98)
• Standard of Practice 2-4
REALTORS® shall not be parties to the naming of a false consideration in any
document, unless it be the naming of an obviously nominal consideration.
• Standard of Practice 2-5
Factors defined as “non-material” by law or regulation or which are expressly
referenced in law or regulation as not being subject to disclosure are considered
not “pertinent” for purposes of Article 2. (Adopted 1/93)
Article 3
REALTORS® shall cooperate with other brokers except when cooperation is not in
the client’s best interest. The obligation to cooperate does not include the
obligation to share commissions, fees, or to otherwise compensate another broker.
(Amended 1/95)
• Standard of Practice 3-1
REALTORS®, acting as exclusive agents or brokers of sellers/ landlords, establish
the terms and conditions of offers to cooperate. Unless expressly indicated in
offers to cooperate, cooperating brokers may not assume that the offer of
cooperation includes an offer of compensation. Terms of compensation, if any,
shall be ascertained by cooperating brokers before beginning efforts to accept the
offer of cooperation. (Amended 1/99)
• Standard of Practice 3-2
REALTORS® shall, with respect to offers of compensation to another REALTOR®,
timely communicate any change of compensation for cooperative services to the
other REALTOR® prior to the time such REALTOR® produces an offer to
purchase/lease the property. (Amended 1/94)
• Standard of Practice 3-3
Standard of Practice 3-2 does not preclude the listing broker and cooperating
broker from entering into an agreement to change cooperative compensation.
(Adopted 1/94)
• Standard of Practice 3-4
REALTORS®, acting as listing brokers, have an affirmative obligation to disclose
the existence of dual or variable rate commission arrangements (i.e., listings where
one amount of commission is payable if the listing broker’s firm is the procuring
cause of sale/lease and a different amount of commission is payable if the
sale/lease results through the efforts of the seller/landlord or a cooperating
broker). The listing broker shall, as soon as practical, disclose the existence of
such arrangements to potential cooperating brokers and shall, in response to
inquiries from cooperating brokers, disclose the differential that would result in a
cooperative transaction or in a sale/lease that results through the efforts of the
seller/landlord. If the cooperating broker is a buyer/tenant representative, the
buyer/tenant representative must disclose such information to their client before
the client makes an offer to purchase or lease. (Amended 1/02)
• Standard of Practice 3-5
It is the obligation of subagents to promptly disclose all pertinent facts to the
principal’s agent prior to as well as after a purchase or lease agreement is
executed. (Amended 1/93)
• Standard of Practice 3-6
REALTORS® shall disclose the existence of accepted offers, including offers with
unresolved contingencies, to any broker seeking cooperation. (Adopted 5/86,
Amended 1/04)
• Standard of Practice 3-7
When seeking information from another REALTOR® concerning property under a
management or listing agreement, REALTORS® shall disclose their REALTOR®
status and whether their interest is personal or on behalf of a client and, if on
behalf of a client, their representational status. (Amended 1/95)
• Standard of Practice 3-8
REALTORS® shall not misrepresent the availability of access to show or inspect a
listed property. (Amended 11/87)
Article 4
REALTORS® shall not acquire an interest in or buy or present offers from
themselves, any member of their immediate families, their firms or any member
thereof, or any entities in which they have any ownership interest, any real
property without making their true position known to the owner or the owner’s
agent or broker. In selling property they own, or in which they have any interest,
REALTORS® shall reveal their ownership or interest in writing to the purchaser or
the purchaser’s representative. (Amended 1/00)
• Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in
writing and provided by REALTORS® prior to the signing of any contract.
(Adopted 2/86)
Article 5
REALTORS® shall not undertake to provide professional services concerning a
property or its value where they have a present or contemplated interest unless
such interest is specifically disclosed to all affected parties.
Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures
made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s
insurance, warranty programs, mortgage financing, title insurance, etc.),
REALTORS® shall disclose to the client or customer to whom the recommendation
is made any financial benefits or fees, other than real estate referral fees, the
REALTOR® or REALTOR®’s firm may receive as a direct result of such
recommendation. (Amended 1/99)
• Standard of Practice 6-1
REALTORS® shall not recommend or suggest to a client or a customer the use of
services of another organization or business entity in which they have a direct
interest without disclosing such interest at the time of the recommendation or
suggestion. (Amended 5/88)
Article 7
In a transaction, REALTORS® shall not accept compensation from more than one
party, even if permitted by law, without disclosure to all parties and the informed
consent of the REALTOR®’s client or clients. (Amended 1/93)
Article 8
REALTORS® shall keep in a special account in an appropriate financial institution,
separated from their own funds, monies coming into their possession in trust for
other persons, such as escrows, trust funds, clients’ monies, and other like items.
Article 9
REALTORS®, for the protection of all parties, shall assure whenever possible that
all agreements related to real estate transactions including, but not limited to,
listing and representation agreements, purchase contracts, and leases are in
writing in clear and understandable language expressing the specific terms,
conditions, obligations and commitments of the parties. A copy of each agreement
shall be furnished to each party to such agreements upon their signing or
initialing. (Amended 1/04)
• Standard of Practice 9-1
For the protection of all parties, REALTORS® shall use reasonable care to ensure
that documents pertaining to the purchase, sale, or lease of real estate are kept
current through the use of written extensions or amendments. (Amended 1/93)
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)
• Standard of Practice 10-1
When involved in the sale or lease of a residence, REALTORS® shall not
volunteer information regarding the racial, religious or ethnic composition of any
neighborhood nor shall they engage in any activity which may result in panic
selling, however, REALTORS® may provide other demographic information.
(Adopted 1/94, Amended 1/06)
• Standard of Practice 10-2
When not involved in the sale or lease of a residence, REALTORS® may provide
demographic information related to a property, transaction or professional
assignment to a party if such demographic information is (a) deemed by the
REALTOR® to be needed to assist with or complete, in a manner consistent with
Article 10, a real estate transaction or professional assignment and (b) is obtained
or derived from
a recognized, reliable, independent, and
impartial source. The source of such information and any additions, deletions,
modifications, interpretations, or other changes shall be disclosed in reasonable
detail. (Adopted 1/05, Renumbered 1/06)
• Standard of Practice 10-3
REALTORS® shall not print, display or circulate any statement or advertisement
with respect to 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, Renumbered 1/05 and 1/06)
• Standard of Practice 10-4
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, Renumbered 1/05 and 1/06)
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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
• 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)
Duties to REALTORS®
Duties to the 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)
• Standard of Practice 15-1
REALTORS® shall not knowingly or recklessly file false or unfounded ethics
complaints. (Adopted 1/00)
Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with
exclusive representation or exclusive brokerage relationship agreements that
other REALTORS® have with clients. (Amended 1/04)
• 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
prospects describing their services and the terms of their availability even though
some recipients may have entered into agency agreements or other exclusive
relationships with another REALTOR®. A general telephone canvass, general
mailing or distribution addressed to all prospects 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. (Amended 1/04)
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 prospects 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 1/04)
• 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) or from
offering the same type of service for property not subject to other brokers’
exclusive agreements. 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
1/04)
• 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 agreements from buyers/ tenants who
are subject to exclusive buyer/tenant agreements. However, if asked by a
REALTOR®, the broker refuses to disclose the expiration date of the exclusive
buyer/tenant 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 agreement or, alternatively, may enter into a
buyer/tenant agreement to become effective upon the expiration of any existing
exclusive buyer/tenant agreement. (Adopted 1/94, Amended 1/98)
• Standard of Practice 16-6
When REALTORS® are contacted by the client of another REALTOR® regarding
the creation of an exclusive 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 agreement or,
alternatively, may enter into an agreement which becomes effective upon
expiration of any existing exclusive agreement. (Amended 1/98)
• Standard of Practice 16-7
The fact that a prospect has retained a REALTOR® as an exclusive
representative or exclusive broker in one or more past transactions does not
preclude other REALTORS® from seeking such prospect’s future business.
(Amended 1/04)
• Standard of Practice 16-8
The fact that an exclusive agreement has been entered into with a REALTOR®
shall not preclude or inhibit any other REALTOR® from entering into a similar
agreement after the expiration of the prior agreement. (Amended 1/98)
• Standard of Practice 16-9
REALTORS®, prior to entering into a representation agreement, have an
affirmative obligation to make reasonable efforts to determine whether the
prospect is subject to a current, valid exclusive agreement to provide the same
type of real estate service. (Amended 1/04)
• Standard of Practice 16-10
REALTORS®, acting as buyer or tenant representatives or brokers, shall disclose
that relationship to the seller/landlord’s representative or broker at first contact
and shall provide written confirmation of that disclosure to the seller/ landlord’s
representative or broker not later than execution of a purchase agreement or
lease. (Amended 1/04)
• Standard of Practice 16-11
On unlisted property, REALTORS® acting as buyer/tenant representatives or
brokers shall disclose that relationship to the seller/landlord at first contact for that
buyer/tenant and shall provide written confirmation of such disclosure to the
seller/landlord not later than execution of any purchase or lease agreement.
(Amended 1/04)
REALTORS® shall make any request for anticipated compensation from the
seller/landlord at first contact. (Amended 1/98)
• Standard of Practice 16-12
REALTORS®, acting as representatives or brokers 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 1/04)
• Standard of Practice 16-13
All dealings concerning property exclusively listed, or with buyer/tenants who are
subject to an exclusive agreement shall be carried on with the client’s
representative or broker, and not with the client, except with the consent of the
client’s representative or broker or except where such dealings are initiated by the
client.
Before providing substantive services (such as writing a purchase offer or
presenting a CMA) to prospects, REALTORS® shall ask prospects whether they
are a party to any exclusive representation agreement. REALTORS® shall not
knowingly provide substantive services concerning a prospective transaction to
prospects who are parties to exclusive representation agreements, except with the
consent of the prospects’ exclusive representatives or at the direction of
prospects. (Adopted 1/93, Amended 1/04)
• 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 subject to an exclusive
agreement but shall not knowingly obligate them to pay more than one commission
except with their informed consent. (Amended 1/98)
• 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 subagents or buyer/tenant representatives or brokers,
shall not use the terms of an offer to purchase/lease to attempt to modify the
listing broker’s offer of compensation to subagents or buyer/tenant
representatives or brokers 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 1/04)
• Standard of Practice 16-17
REALTORS®, acting as subagents or as buyer/tenant representatives or brokers,
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
1/04)
• Standard of Practice 16-18
REALTORS® shall not use information obtained from listing brokers through offers
to cooperate made through multiple listing services or through other offers of
cooperation to refer listing brokers’ clients to other brokers or to create
buyer/tenant relationships with listing brokers’ clients, unless such use is
authorized by listing brokers. (Amended 1/02)
• 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)
• Standard of Practice 16-20
REALTORS®, prior to or after terminating their relationship with their current firm,
shall not induce clients of their current firm to cancel exclusive contractual
agreements between the client and that firm. This does not preclude REALTORS®
(principals) from establishing agreements with their ASSOCIATEd licensees
governing assignability of exclusive agreements. (Adopted 1/98)
Article 17
In the event of contractual disputes or specific non-contractual disputes as defined
in Standard of Practice 17-4 between REALTORS® (principals) 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.
The obligation to participate in arbitration contemplated by this Article includes the
obligation of REALTORS® (principals) to cause their firms to arbitrate and be
bound by any award. (Amended 1/01)
• 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. (Adopted 1/96)
• Standard of Practice 17-4
Specific non-contractual disputes that are subject to arbitration pursuant to Article
17 are:
1) Where a listing broker has compensated a cooperating broker and another
cooperating broker subsequently claims to be the procuring cause of the sale or
lease. In such cases the complainant may name the first cooperating broker as
respondent and arbitration may proceed without the listing broker being named as
a respondent. Alternatively, if the complaint is brought against the listing broker,
the listing broker may name the first cooperating broker as a third-party
respondent. In either instance the decision of the hearing panel as to procuring
cause shall be conclusive with respect to all current or subsequent claims of the
parties for compensation arising out of the underlying cooperative transaction.
(Adopted 1/97)
2) Where a buyer or tenant representative is compensated by the seller or
landlord, and not by the listing broker, and the listing broker, as a result, reduces
the commission owed by the seller or landlord and, subsequent to such actions,
another cooperating broker claims to be the procuring cause of sale or lease. In
such cases the complainant may name the first cooperating broker as respondent
and arbitration may proceed without the listing broker being named as a
respondent. Alternatively, if the complaint is brought against the listing broker, the
listing broker may name the first cooperating broker as a third-party respondent. In
either instance the decision of the hearing panel as to procuring cause shall be
conclusive with respect to all current or subsequent claims of the parties for
compensation arising out of the underlying cooperative transaction. (Adopted 1/97)
3) Where a buyer or tenant representative is compensated by the buyer or tenant
and, as a result, the listing broker reduces the commission owed by the seller or
landlord and, subsequent to such actions, another cooperating broker claims to be
the procuring cause of sale or lease. In such cases the complainant may name the
first cooperating broker as respondent and arbitration may proceed without the
listing broker being named as a respondent. Alternatively, if the complaint is
brought against the listing broker, the listing broker may name the first cooperating
broker as a third-party respondent. In either instance the decision of the hearing
panel as to procuring cause shall be conclusive with respect to all current or
subsequent claims of the parties for compensation arising out of the underlying
cooperative transaction. (Adopted 1/97)
4) Where two or more listing brokers claim entitlement to compensation pursuant
to open listings with a seller or landlord who agrees to participate in arbitration (or
who requests arbitration) and who agrees to be bound by the decision. In cases
where one of the listing brokers has been compensated by the seller or landlord,
the other listing broker, as complainant, may name the first listing broker as
respondent and arbitration may proceed between the brokers. (Adopted 1/97)
5) Where a buyer or tenant representative is compensated by the seller or
landlord, and not by the listing broker, and the listing broker, as a result, reduces
the commission owed by the seller or landlord and, subsequent to such actions,
claims to be the procuring cause of sale or lease. In such cases arbitration shall
be between the listing broker and the buyer or tenant representative and the
amount in dispute is limited to the amount of the reduction of commission to which
the listing broker agreed. (Adopted 1/05)
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, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001,
2002, 2003, 2004 and 2005.
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.
