When you think of professionals who follow specific codes of ethics, what comes to mind? Doctors, lawyers, engineers – all are professionals who pledge to follow a strict code of ethics. For important life issues like your health and legal matters, it makes sense to have relationships with professionals who follow such a code. MCAR encourages you to consider a similar relationship when it comes to real estate transactions.

REALTORS® -- real estate professionals who are members of the National Association of REALTORS® (NAR) -- pledge to adhere to NAR's strict Code of Ethics and Standards of Practice. Among other things, membership in NAR obligates them to be honest with all parties involved in a transaction, whether it is the buyer, seller or cooperating agent.

The Code of Ethics is the public’s assurance that they are dealing with a professional who has their best interests in mind. REALTORS® are subject to disciplinary action and sanctions if they violate the duties imposed by the NAR Code of Ethics.

It is important that consumers understand the difference between REALTORS® and other real estate practitioners.

Real Estate Facts

Only members of NAR can call themselves REALTORS®. Real estate practitioners are simply licensed by their state to do business. The term “REALTOR®" stands for competency, fairness, high integrity and moral conduct in business relations.

Folks looking to buy or sell a home should consider REALTORS® their best advocates in the marketplace. When choosing a real estate professional, look for the registered trademark, REALTOR®.

Because the Code of Ethics is so important, all REALTORS® are required to take a minimum of two and a half hours orientation on the Code of Ethics. A NAR requirement calls for existing members to take a refresher training course every four years.

Adopted in 1913, the Code includes 17 Articles and related Standards of Practice that outline the professional duties of every REALTOR® to clients, customers, the public and other REALTOR®.

Here’s a general overview of just a few of the key principles REALTORS® willingly agree to under the Code:

• REALTORS® avoid practices which may harm the public.
• REALTORS® do not exaggerate, misrepresent or conceal facts related to property or transactions.
• REALTORS® protect and promote their clients’ interests and treat all parties fairly.
• REALTORS® represent themselves truthfully in advertising and other public forums.
• REALTORS® receive compensation from only one party, except where they make full disclosure and receive informed consent from their client.
• REALTORS® respect the exclusive, professional relationship that other Realtors® have with their clients.
• REALTORS® give equal professional service to all clients and customers regardless of race, color, religion, sex, disability, family status or national origin.
• REALTORS® willingly participate in ethics investigations and enforcement actions.