Real Estate Ethics Training
Real estate agents and brokers must complete a course in real estate ethics training to attain or renew membership with the National Association of Realtors, a trade organization for real estate professionals who follow a strict code of ethics to ensure consumer protection and satisfaction in every real estate transaction. The code of ethics includes duties to clients, customers, the public and other Realtors.
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New Agents
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New real estate agents must take a 2 ½-hour course in ethics training prior to joining the National Association of Realtors and any of its affiliated state and local chapters. The course includes information on how to maintain honest and direct communication with clients and other Realtors and how to best disclose all facts to all parties in a real estate transaction, as well as tackles case-by-case scenarios where a real estate agent must decide how to proceed in the client's best interest.
Renewing Agents
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Real estate agents who renew their membership with the National Association of Realtors must also complete a 2 ½-hour course in ethics training. An online course review may satisfy this requirement. Ethics training for renewing or returning real estate agents and brokers focuses on the same principles of honesty, integrity, communication and disclosure to protect consumers and foster cooperation among Realtors.
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The Code of Ethics
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The Realtors' Pledge of Performance and Service contains duties to the clients and customers, the public and other Realtors. The first nine articles concern honest disclosure to clients and customers regarding all material facts of the property, all sources and compensation to the Realtor, fair handling of trust funds, and competency in preparing any contracts or disclosures. Articles 10 through 14 describe the need to not discriminate, the duty to provide fair housing, the truthfulness of all advertising and the degree of professionalism needed in dealing with the public. The final three articles involve respecting the exclusive working relationship between other Realtors and their clients, honest communication and the willingness to arbitrate, if necessary.
Significance
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Real estate laws and regulations vary from state to state; often, laws and regulations don't cover the questionable areas of real estate practice. For example, a real estate agent may not return calls in a timely manner, causing a prospective buyer to lose out on the opportunity to purchase a home. While it's not against the law to return phone calls within a certain time period, the National Association of Realtors' Code of Ethics and Standards of Practice requires Realtors to act in their client's best interest, which means returning phone calls in a timely manner to ensure the client has every opportunity to make a desired real estate purchase.
Benefits
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By working with a Realtor who receives training in ethics, a consumer receives the benefits of associating with a professional who delivers honest disclosure throughout a real estate transaction. Whether selling or purchasing a house or a commercial building, a consumer trusts that the Realtor will reveal all material facts concerning the property, relay information on the Realtor's compensation, and cooperate courteously and professionally with any other Realtors involved in the transaction.
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References
- National Association of Realtors: Real Estate Ethics Training
- National Association of Realtors: Code of Ethics and Standards of Practice of the National Association of Realtors
- Georgia Institute of Real Estate: Code of Ethics Required Training
- Chicago Association of Realtors: Quadrennial Ethics Training
- Photo Credit Abraham Lincoln Memorial image by EdCooper from Fotolia.com
