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 whether conducted personally, through associates or others, or via technological
means, and to conduct their business in accordance with the tenets set forth below. (Amended 1/07)
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 imposed by the Code of Ethics encompass all real estate-related
activities and transactions whether conducted in person, electronically, or through any other means.
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 1/07) • 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, if asked, whether offers were obtained by the listing licensee, another licensee in
the listing firm, or by a cooperating broker. (Adopted 1/03, Amended 1/09)
• Standard
of Practice 1-16
REALTORS® shall not use, or permit or enable others to use, listed or managed
property on terms or conditions other than those authorized by the owner or seller. (Adopted 1/12)
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
To be effective, any change in compensation offered for cooperative services
must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to
purchase/lease the property. (Amended 1/10) • 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 relationship with
the client. (Amended 1/11) • Standard
of Practice 3-8
REALTORS® shall not misrepresent the availability of access to show or inspect
a listed property. (Amended 11/87) • Standard
of Practice 3-9
REALTORS® shall not provide access to listed property on terms other than
those established by the owner or the listing broker. (Adopted 1/10) • Standard
of Practice 3-10
The duty to cooperate established in Article 3 relates to the
obligation to share information on listed property, and to make property available
to other brokers for showing to prospective purchasers/tenants when it is in the
best interests of sellers/landlords. (Adopted 1/11)
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) • Standard
of Practice 9-2
When assisting or enabling a client or customer in establishing a contractual
relationship (e.g., listing and representation agreements, purchase agreements, leases, etc.) electronically,
REALTORS® shall make reasonable efforts to explain the nature and disclose the specific terms of the
contractual relationship being established prior to it being agreed to by a contracting party. (Adopted 1/07)
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, national origin, or sexual orientation. 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 1/11)
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, national
origin, or sexual orientation. (Amended 1/11)
• Standard of Practice 10-1
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)
• 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, national origin, or sexual orientation.
(Adopted 1/94, Renumbered 1/05 and 1/06, Amended 1/11)
• 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) 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, land 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 1/10) • 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 unless the party requesting the opinion requires a specific type of report or different
data set:
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 1/10)
• 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 honest and truthful in their real estate communications and shall
present a true picture in their advertising, marketing, and other representations. REALTORS® shall
ensure that their status as real estate professionals is readily apparent in their advertising,
marketing, and other representations, and that the recipients of all real estate communications are, or
have been, notified that those communications are from a real estate professional. (Amended 1/08) • 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 real estate services or listed property in
any medium (e.g., electronically, print, radio, television, etc.) without disclosing
the name of that REALTOR®'s firm in a reasonable and readily apparent manner. This
Standard of Practice acknowledges that disclosing the name of the firm may not be
practical in electronic displays of limited information (e.g. "thumbnails", text
messages, "tweets", etc.). Such displays are exempt from the disclosure requirement
established in the Standard of Practice, but only when linked to a display that
includes all required disclosures. (Adopted 11/86, Amended 1/11) • 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) • Standard
of Practice 12-8
The obligation to present a true picture in representations to the public includes
information presented, provided, or displayed on REALTORS®' websites. REALTORS® shall used
reasonable efforts to ensure that information on their webisites is current. When it becomes apparent
that information on a REALTOR®'s website is no longer current or accurate, REALTORS® shall promptly
take corrective action. (Adopted 1/07) • Standard
of Practice 12-9
REALTOR® firm websites shall disclose the firm's name and state(s) of licensure
in a reasonable and readily apparent manner.
Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm sall disclose the
firm's name and that REALTOR®'s or non-member licensee's state(s) of licensure in a reasonable and
readily apparent manner. (Adopted 1/07) • Standard
of Practice 12-10
REALTORS®’ obligation to present a true picture in their advertising and
representations to the public includes Internet content posted, and the URLs and domain names they
use, and prohibits REALTORS® from:
1. engaging in deceptive or unauthorized framing of real estate brokerage websites;
2. manipulating (e.g., presenting content developed by others) listing and other content in any way
that produces a deceptive or misleading result;
3. deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet
traffic; or
4. presenting content developed by others without either attribution or without permission, or
5. to otherwise mislead consumers. (Adopted 1/07, Amended 1/13)
• Standard
of Practice 12-11
REALTORS® intending to share or sell consumer information gathered via the
Internet shall disclose that possibility in a reasonable and readily apparent manner. (Adopted 1/07)
• Standard
of Practice 12-12
REALTORS® shall not:
1) use URLs or domain names that present less than a true picture, or
2) register URLs or domain names which, if used, would present less than a true picture.
(Adopted 1/08) • Standard
of Practice 12-13
The obligation to present a true picture in advertising, marketing, and representations
allows REALTORS® to use and display only professional designations, certifications, and other credentials to
which they are legitimately entitled. (Adopted 1/08)
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® Article 15
REALTORS® shall not knowingly or recklessly make false or misleading statements about
other real estate professionals, their businesses, or their business practices. (Amended 1/12)
• Standard
of Practice 15-1
REALTORS® shall not knowingly or recklessly file false or unfounded ethics complaints.
(Adopted 1/00)
• Standard
of Practice 15-2
The obligation to refrain from making false or misleading statements about other real
estate professionals, their businesses and their business practices includes the duty to not knowingly or
recklessly publish, repeat, retransmit, or republish false or misleading statements made by others. This
duty applies whether false or misleading statements are repeated in person, in writing, by technological
means (e.g., the Internet), or by any other means. (Amended 1/12)
• Standard
of Practice 15-3
The obligation to refrain from making false or misleading statements about other real
estate professionals, their businesses, and their business practices includes the duty to publish a
clarification about or to remove statements made by others on electronic media the REALTOR® controls
once the REALTOR® knows the statement is false or misleading. (Amended 1/12) 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 their relationship with their current firm is
terminated, 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, Amended 1/10) 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 mediate the dispute if the Board requires its members
to mediate. If the dispute is not resolved through mediation, or if mediation is not required, REALTORS®
shall submit the dispute to arbitration in accordance with the policies of their Board rather than litigate
the matter.
In the event clients of REALTORS® wish to mediate or arbitrate contractual disputes
arising out of real estate transactions, REALTORS® shall mediate or arbitrate those disputes in accordance
with the policies of the Board, provided the clients agree to be bound by any resulting agreement or award.
The obligation to participate in mediation or arbitration contemplated by this Article
includes the obligation of REALTORS® (principals) to cause their firms to mediate or arbitrate and be bound
by any resulting agreement or award. (Amended 1/12)
• 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 mediate in those circumstances when all parties
to the dispute advise the Board in writing that they choose not to mediate through the Board's facilities.
The fact that all parties decline to participate in mediation does not relieve REALTORS® of the duty to
arbitrate.
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 1/12)
• 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. When arbitration occurs between two (or more)
cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of
any potential resulting award is limited to the amount paid to the respondent by the listing broker and any
amount credited or paid to a party to the transaction at the direction of the 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, Amended 1/07)
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. When arbitration occurs
between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute
and the amount of any potential resulting award is limited to the amount paid to the respondent by the listing
broker and any amount credited or paid to a party to the transaction at the direction of the 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, Amended 1/07)
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)
• Standard
of Practice 17-5
The obligation to arbitrate established in Article 17 includes disputes between
REALTORS® (principals) in different states in instances where, absent an established inter-association
arbitration agreement, the REALTOR® (principal) requesting arbitration agrees to submit to the jurisdiction
of, travel to, participate in, and be bound by any resulting award rendered in arbitration conducted by the
respondent(s) REALTOR®'s association, in instances where the respondent(s) REALTOR®'s association
determines that an arbitrable issue exists. (Adopted 1/07)
The Code of Ethics was adopted in 1913. Amended at the Annual Convention in 1914,
1915, 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962, 1974, 1975, 1982, 1986, 1987, 1989, 1990, 1991,
1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009,
2010, 2011, and 2012.
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.
Copyright 2013, National Association of REALTORS®, All rights reserved. Form No.
166-288 (1/13)