Code of Ethics

Not all real estate licensees are REALTORS®. Only members of the NATIONAL ASSOCIATION OF REALTORS® subscribe to NAR's strict Code of Ethics in their dealings with clients and customers, the public, and with each other.

What does this mean to you as a buyer or seller? It means that the REALTOR you choose to work with has taken the voluntary step of agreeing to abide by a code of ethics developed with public protection in mind.

In addition, your REALTOR® is subject to disciplinary action should a local association of REALTORS find him or her in violation of the Code of Ethics.

The NATIONAL ASSOCIATION OF REALTORS® adopted its Code of Ethics in 1913, and was only the second trade or business group in the United States to adopt mandatory ethical standards.

The Code of Ethics is a comprehensive document spelling out the professional responsibilities REALTORS are governed by. Ask your REALTOR for a copy of the Code—it is your assurance that you, as a consumer, are dealing with a professional having your best interests in mind.

The Code of Ethics of NAR consists of 17 Articles. The basic principles are summarized as follows:

Duties to Clients and Customers

REALTORS® must:
• protect and promote their client's interests while being honest with all parties. They do not reveal confidential information.
• avoid exaggeration, misrepresentation or concealment of pertinent facts.
• cooperate with other real estate professionals to advance their client's best interests.
• when buying or selling, make their position or interest known.
• disclose any present or contemplated interest in any transaction to all parties.
• avoid "side deals" without their client's informed consent.
• accept compensation from only one party, except with full disclosure and informed consent of their client.
• keep funds of clients and customers in an escrow account.
• ensure that transactional details are in writing.

Duties to the Public

REALTORS® must:
• provide equal service to all clients and customers.
• be knowledgeable and competent in the fields of practice in which they ordinarily engage.
• obtain assistance from a knowledgeable professional or disclose any lack of expertise to their client.
• present a true picture in advertising and other public representations.
• avoid the unauthorized practice of law.
• be a willing participant in ethics enforcement procedures.

Duties to REALTORS®

REALTORS® must:
• ensure their comments about other real estate professionals are truthful and not misleading.
• respect the exclusive relationships of other REALTORS®.
• arbitrate contractual disagreements with other REALTORS® and with their clients.