Posts Tagged ‘Standards of Practice’

Real Estate Ethics

Thursday, August 21st, 2008

     Every two years, Arizona Realtors must take the Ethics class which covers the Code of Ethics and Standards of Practice of the National Association of Realtors.  You can find the Code on my website  at http://www.terrybishop.com/tools.html with links in both Spanish and English.

    The Code of Ethics has three main segments:  Duties to Clients and Customers;  Duties to the Public; and Duties to other agents.  It is the basis by which Realtors must conduct business and the Code of Ethics and Standards of Practice are the guidelines used during mediation and arbitration of a dispute.

    Answers to most problems which arise in a real estate transaction can be found in the Code and in the Standards of Practice.  It was first adopted in 1913 and has been subsequently amended almost annually since 1986.

    The Code covers everything from disputes about compensation to the difference between a client and a customer…and who is owed fiduciary responsiblity.  

   For example, in today’s market, when sellers are still trying to get top dollar for their property, “Realtors, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.”  Despite what the seller may want to hear, the Realtor has an obligation to tell the seller in a forthright manner whether a property may be priced too high.  (Article 1, Standard of Practice 1-3)

    There are 17 articles in the Code and within each Article are standards of practice.   The Code of Ethics and Standards of Practice provide the basis for much real estate law.  Although only eight pages, this document is chocked full of answers to questions which arise on a daily basis with real estate transactions.