Preamble
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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
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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:
-
reveal
confidential information of clients; or
-
use
confidential information of clients to the disadvantage
of clients; or
-
use
confidential information of clients for the REALTOR®’s
advantage or the advantage of third parties unless:
-
clients
consent after full disclosure; or
-
REALTORS® are
required by court order; or
-
it
is the intention of a client to commit a crime
and the information is necessary to prevent the
crime; or
-
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:
-
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;
-
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
-
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:
-
the
REALTOR®’s company policies regarding cooperation;
-
the amount of compensation to be paid by the client;
the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties; and any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent, landlord’s agent, etc. (Adopted 1/93, Renumbered 1/98, Amended 1/04
• 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,
divulge the existence of offers on the property. (Adopted 1/03)
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
• Standard
of Practice 2-3
• 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
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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
REALTORS® shall
not volunteer information regarding the racial, religious
or ethnic composition of any neighborhood and shall not
engage in any activity which may result in panic selling.
REALTORS® shall not print, display or circulate
any statement or advertisement with respect to the 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)
• Standard
of Practice 10-2
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)
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:
-
identification
of the subject property
-
date
prepared
-
defined
value or price
-
limiting
conditions, including statements of purpose(s) and
intended user(s)
-
any
present or contemplated interest, including the possibility
of representing the seller/landlord or buyers/tenants
-
basis
for the opinion, including applicable market data
-
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®
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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 b | 
