REALTOR Code of Ethics (part four)

This is part four in a four part series on the REALTOR Code of Ethics. As always, to keep you from falling asleep, it's just a tip-of-the-iceberg deal. Go HERE to check out the full code.

#13) Shall not practice law unless they are a lawyer.

• Should be enough said. If I had a law degree, I probably wouldn't be a REALTOR, haha.

#14) Shall cooperate if charges are brought against them and present all evidence requested.

• If charged with an unethical practice, we merely must display the facts and prove innocence---or guilt, as I suppose could be the case.

#15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

• I won't say much anything about a competing agent. I think there are very few in my region that could actually compete and do the job as well as I can- and those that could...why would I have anything negative to say about them?
• In all seriousness- there's no reason for this talk. It's like dirty politics and not my game. I'll let you know what I will do for you and nothing beyond that really matters to me.

#16) Shall not solicit another REALTOR'S client nor interfere in a contractual relationship.

• Any agent that attempts to sway another to use him or her while under contract with another basically falls into this. If you read my blog while your house is listed with another agent- I'm not trying to steal you. The same if I send you a general piece of mail or run into you up-town and mention my services (IF I don't know you're under contract).
• Now if you're under contract and you come to me, we may discuss the terms upon which we might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. I cannot and will not tell you "how you can get out of your current listing." It's in your contract and should be discussed with your current agent/brokerage.
• The fact that one agent sold you a home does not preclude any agents from soliciting you for your future business.
• As a buyer's agent on unlisted property, we must disclose that relationship to the seller and make any request for anticipated commission at first contact.

#17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

• Instead of taking it to the courts, we settle disputes "in house" through our board of REALTORS...a nice break on taxpayers money, I'm certain.

I hope this four part series was able to educate you on the REALTOR Code of Ethics and what separates us (REALTORS) from regular old sales agents. If you have any questions that I can clarify- don't hesitate to ask me!

REALTOR Code of Ethics (part three)

This is part three in a multi-part series on the REALTOR Code of Ethics. Parts one and two can be found in previous posts. As always- this is just tip of the iceberg kind of stuff, to inform yourself even further I urge you to check out the code HERE.

#8) Shall not co-mingle client funds with their own.

• I don't think you REALLY want us to co mingle your funds with ours do you? Don't want your earnest money check going to pay my satellite bill now!

#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

• I cannot help SOME legalese in contracts and whatnot- but WILL explain things in layman's terms. I'll also provide you a copy of everything you sign, if I'm not able to immediately where we are (for lack of copier), I will make when when possible.

#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

• It's utterly disgusting in the "melting pot" of America for anyone to do this under any circumstances- I don't think I need to expound further on the topic sentence.

#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

• When REALTORS® provide consultative 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. For instance, I could charge you $200 for a comparative market analysis...but I couldn't do it on a sliding scale depending on my report back to you.

#12) Must engage in truth in advertising.

• We've got to let you know we are REALTORS and thus, professionals in the industry. I had a situation the other day where a new newspaper ad ran and erroneously the newspaper publisher left all my REALTOR and brokerage information off the ad- needless to say it was remedied quickly.
• 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.
• These truths also apply to the Internet: When it becomes apparent that information on a REALTOR’s website is no longer current or accurate, REALTORS shall promptly take corrective action.

REALTOR Code of Ethics (part two)

This is part two in a multi-part series on the REALTOR Code of Ethics. Part one can be found below this post. Again, this is a brief run-through of the code and the full thing can be found HERE.

#2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

• If you have a leaky roof or faulty foundation and want to hide it...don't call me to be your listing agent. I won't hide it for you. I cannot, however, go beyond my scope of being a REALTOR....meaning, I can't be the judge what is good working, solid, safe building---that's what home inspectors are for. I WILL help you find the best home inspector in the area though.

#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

• In my humble opinion- it's ALWAYS in the best interest to cooperate with other brokers. In no way, at all costs, do I step in the way of any brokers attempting to show/sell your property and I think it's an unwise business decision to not use the MLS to its fullest.

#4) 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 we own, or in which we have any interest, REALTORS® shall reveal our ownership or interest in writing to the purchaser or the purchaser’s representative. You'll find this in advertisements as well, AGENT OWNED is and will be displayed. All disclosing of this must be done prior to acceptance of contracts.

#5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

#6) Shall not collect any commissions without the seller's knowledgee nor accept fees from a third-party without the seller's express 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.
• We also 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. For instance if I co-owned a home inspection company with my spouse or brother- I'd have to let you know of my interest in the company beforehand.

#7) Shall refuse fees from more than one party without all parties' informed consent.

• My pay goes through Century 21 Coleman-Hornsby and Century 21 Coleman-Hornsby only for all real estate duties...no check under the table, no money for referrals from ANYONE that is not a REALTOR

This is part two in a multi-part series....Articles 8-17 will be covered in the coming days.

REALTOR Code of Ethics (part one)

Believe it or not; not all real estate salespeople are REALTORS. REALTOR is a registered trademark which is often, erroneously used to refer to the whole industry much like Kleenex is used to define tissue. Simply put, a REALTOR belongs to the National Association of REALTORS.

In belonging to said group, we subscribe to and live by the REALTOR Code of Ethics. The Code of Ethics is strictly enforced and contains 17 Articles and various underlying Standards of Practice. The Standards are much more restrictive and confining as to conduct than those governing agents who simply hold a real estate license.

In this multi-part series, I will explain the 17 articles and what they mean in layman's terms. I won't be able to hit every single standard without putting you to sleep- so it is recommended that you follow the link to check out the code yourself:

#1- Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.

• There are many times in my line of work where it is in MY and my family's best interest that a property under contract closes and I get paid. In fact, that is probably always the case. However, I act on behalf of the best interest of my client. This is of particular interest in working with buyers...I cannot tell you how many 'deals' I've had go south (fall apart) because my recommended home inspector found problems/issues that were beyond what an initial showing or two found. Too bad for me. My duty is to make certain that the home you purchase is one that you're going to be happy in for as long as you want to be.


• It goes beyond this too- if I'm attempting to procure a listing, I cannot and will not deliberately mislead you into believing your home is worth a certain price just to get my sign in your yard.


• I won't reveal confidential information. If you have to hit a bottom line, I'd never let on to a buyer of your house or his/her agent unless you wanted me to. Vice versa, if I knew you'd pay a certain amount for a home- but offered less- I wouldn't give away that you're testing out a seller. Basically anything that puts you at a disadvantage- not coming from me.


• If and when you list with me you'll know the cooperating commission paid (portion of the listing commission that is paid to potential buyer's agent) and be aware of any possibility of dual agency (which you'll have to agree to prior to my showing your house).

In the coming days, I'll knock out the remaining 16 articles in the REALTOR Code of Ethics.