THE ABC's of the CODE of ETHICES - REALTORS®

What is the Code of Ethics and how does it effect the public. Let me try to brake it down into a simple easy to understand set of rulers. These rules are what makes the difference between a real estate agent and a REALTORS® who is a member of their local board and the National Association of REALTORS®

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.

Why do Realtors follow  this code of ethic and what is the code? And what makes us different from other professional groups.

• Under all is the land - what the public feels as there dream home
• Obligation beyond ordinary commerce
• Duty to become and remain informed - every 2 year licensing which requires constant learning and requirements
• Willingly share the first of your experiences - share with other agents to complete a transaction for the public
• No inducement of profit and no instruction from clients can ever justify departure from the ideal - we are responsible to remain legal and fair
• The GOLDEN RULES

What are our duties to the public as a licensed real estate agent and a member of the National Association of REALTORS

Article 1

• Our owe a duty to protect and promote the interest of your client
• Our owe a duty to treat all parties to the transaction
• Our Duty the Golden Rule

We need to protect the public with the material fact, present all offers to the sellers for them to make the decision what is best for the sellers.

Article 2

• We are not obligated to find latent defects - climbing into the attic or knocking down the drywall
• We need to disclose  material facts  about the property - water damages etc
• We are not obligated to advise your clients on maters outside the scope of our expertise - plumbers,electricians,roofer etc.

Provide the buyers with the information to make decision on purchasing the property…. Like inspector, city zoning, any information we would not have.

Article 3

We must cooperate with other brokers except when cooperation is not in your clients best interest

• The obligation to cooperate does not include the obligation to compensate
• To be effective, any changed in compensation offered for cooperative services must be communicated to the other REALTOR prior to the term the REALTORS submit an offer to purchase the property
• Disclosure duel or variable rate commission agreement
• We must disclose the existence of accepted offers
• When inquiring about a property that is listed you must disclose that you are a REALTOR and whether or not ow are representing a client
• We do not misrepresent the availability  of the property for showing inspecting 

This is how we as agents get paid for our services. Sellers hire an agent to help sale their home. Listing agent offers an amount for a cooperating agent to bring a buyer. In return making it a win/win for the sellers.

Article 4-7

These article protect the public

• Do not acquire interest in or buy or present offers from yourself without disclosing your interest
• Do not sell property in which you have any interest without disclosing this information to all involved
• Don not provide any professional service if you have interest - Selling, leasing, managing and counseling
• Do not take profit with out disclosing - vending machines, moving company etc
• Recommending services or Kick back for services your drive business to

Article 8

Keep all of your clients funds in a separate approved real estate trust account - earnest money and deposit etc.

Article 9

We must insure that whenever possible all agreement related to real estate contract is delivered to all parties which could include the Real Estate Purchase contract, Seller Disclosure, Title Work, Inspections etc.

Article 10

We will not discriminated base on race, color, religion, sex, handicap, familial status or nation origin or sexual orientation.

Article 11

We only attempt to provide services which you are competent to provide

Article 12

We must be truthful and honest in real estate communication present a true picture in advertising marketing and other representation. We must make it readily apparent that you are a real estate professional in all of your advertising marketing and communications. This is big with the new social media rage as long as the agent places the brokerage name on all marketing .

Article 13

We do not engage in the unauthorized practice of Law
We must recommend that legal counsel be obtained when the interest of any party to the transaction requires it. This is very important when dealing with short sales all sellers should looking into legal counsel.

Article 14
All information from ethic hearing and arbitration hearing are confidential

Article 15

We do not knowingly or recklessly make false or misleading statement about competitors

Article 16

We Do not interfere with an exclusive representation of another agent

When can a client of a broker be contacted by another agent brokers - when the agent give permission.
When the new broker offers a different type of real estate services provide or services - when the clients offer it

As you can see there are very special rules that governor us as professionals to protect you as a buyer to seller that your needs are met and you are protect against misrepresentation

If you would like a full copy of the code of ethic or have any questions please let me know you can call or email me at 88lorifleming@gmail.com or 801-940-9560