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REAL ETHICS by Steve Stazel | January 2007 | Index of all Real Ethics columns
Changes to the Code of Ethics in effect now
As you know, the real estate industry is in constant change.
Our Professional Standards committee at the National Association of REALTORS® (NAR) is aware of those changes and attempts to alter the REALTOR® Code of Ethics to meet those changes.
This year’s changes are an example of the Code being adjusted/added to in order to meet changes in REALTOR® practices. You will note that many of the changes to the Code relate to Internet/electronic communications.
This year we have an addition to the Preamble to the Code (underlining indicates additions). “Accepting this standard (i.e. the Preamble) 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.”
Revised Standard of Practice 1-2
A new paragraph has been added. It states: 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.
New 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.
Note to reader—According to NAR’s Code of Ethics and Arbitration Manual, the terms “electronically,” “electronic means,” “technology,” “technological means,” and related terms include but are not limited to the Internet, Internet-based websites, all forms of Internet communication, e-mail, facsimile correspondence, telephony, and all other forms of distance communication.
Revised Standard of Practice 12-5
(underlining indicates additions) 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.
New Standard of Practice 12-8
The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTOR®s’ 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, the REALTOR® shall promptly take corrective action.
New 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.
New Standard of Practice 12-10
A REALTOR®’s obligation to present a true picture in his or her advertising and representations to the public includes 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 content in any way that produces a deceptive or misleading result: or
3) deceptively using metatags, keywords or other devices/methods to direct drive, or divert Internet traffic, or to otherwise mislead consumers.
New 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.
“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.”
The remainder of the changes to the Code will be published in next month’s Aurora Outlook.
Each month, the Aurora Association of REALTORSŪ Web site features Real Ethics,
a column by Steve Stazel devoted to explaining Code of
Ethics issues for members. A REALTORŪ since 1974, Stazel is a Professional Standards
instructor and senior Ethics
instructor for the Colorado Association of REALTORSŪ.
If you have an ethical concern or an issue you would like
to see addressed, please call Stazel at (303) 773-3333 or e-mail him at
stazels@msn.com. The comments of this article reflect the understanding and
opinions of the author and do not represent an official expression of policy by the National Association
of REALTORSŪ.
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