Realtor Code of Conduct
The National Association of Realtors (NAR) is an organization for real estate professionals. Not all real estate agents are members of the NAR, yet those who are have agreed to follow the Code of Ethics and Standards of Practice established by the association. Under the NAR, there are state Realtor associations. Under the state associations, there are local Realtor associations. When real estate professionals join local associations, they become members of the state and national associations.
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History
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In the early 1900s the real estate profession had a tarnished reputation. Real estate practitioners, who wanted to elevate the standards of their industry, established a professional association in 1908. It was known as the National Association of Real Estate Exchanges. Members of the organization agreed to follow a higher code of conduct, established by the association. The organization eventually became the National Association of Realtors.
Significance
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When becoming a member of the National Association of Realtors, members take an oath, agreeing to follow the Code of Ethics and Standards of Practice established by the organization. This gives the National Association of Realtors the power to self-police its members. If a member violates the code of conduct, the association has the power to sanction or expel the member. While the organization doesn't have the power to revoke a member's license to practice business, it does have the power to monitor those who want to remain Realtors.
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Benefits
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For clients, the benefit of using a Realtor, as opposed to a real estate professional who is not a member of the professional association, is that they know the agent has agreed to follow the code of conduct. Should the agent violate that oath, the client has the option of filing a complaint with the association.
Considerations
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Over the years the Code of Ethics has changed, reflecting the times and social consciousness. In 2010, Article 10 states, "Realtors shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin." Yet the code was not always colorblind. It once read: "The Realtor should not be instrumental in introducing to a neighborhood a character of property or use which will clearly be detrimental to property values in that neighborhood." Some white Realtors of that era believed selling to a minority would be detrimental to a neighborhood, thus a violation of the code.
Identification
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Effective Jan. 1, 2010, the National Association of Realtors Code of Ethics includes 17 articles, which outline how Realtors are to conduct business, treat clients, other agents and the clients of other agents. The code specifies the Realtor must operate ethically and morally, and uphold property rights. The code also requires Realtors to keep informed and take necessary real estate educational classes.
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References
- Photo Credit House for sale image by fejas from Fotolia.com
