Code of Ethics


Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS ®

Effective January 1, 2007

Duties to Clients and Customers
Duties to the Public
Duties to REALTORS®



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:


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;


any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g. listing broker, subagent, landlord’s
agent, etc., and


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 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))


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

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)


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, 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

When involved in the sale or lease of a residence, REALTORS® shall not volunteer information regarding the racial, religious or
ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however,
REALTORS® may provide other demographic information. (Adopted 1/94, 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, or
national origin. (Adopted 1/94, Renumbered 1/05 and 1/06)


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, 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 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. (Adopted 11/86, Amended 1/07)


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 use reasonable efforts to ensure that information on their websites 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 shall 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 the URLs and
domain names they use, and prohibits REALTORS® from:


engaging in deceptive or unauthorized framing of real estate brokerage websites;

manipulating (e.g., presenting content developed by others) listing content in any way that produces a deceptive or misleading
result; or

deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, or to otherwise
mislead consumers. (Adopted 1/07)


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)


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 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)

Standard of Practice 15-2

The obligation to refrain from making false or misleading statements about competitors’ businesses and competitors’ business
practices includes the duty to not knowingly or recklessly 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. (Adopted 1/07

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:


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)


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 seller or landlord 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)


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)


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)


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 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961,
1962, 1974, 1982, 1986, 1987, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, and
2005.

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.

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Copyright 2007, National Association of REALTORS®, All rights reserved. Form No. 166-288 (12/06) (rev 2/07)











Copyright © 2007 Orlando Regional Realtor® Association.
All rights reserved.