The National and Virginia Associations of REALTORS® are proud of members whose Realtor "R" stands for a solid commitment to the Realtor Code of Ethics, which turns 100 this year.

1. REALTOR® CODE OF ETHICS
A C E N T U RY OF C OM M I T M E N T TO
E X C E L L E N C E I N R E A L E S TAT E P R A C T I C E

2. In 2008, the National Association of
REALTORS® celebrated 100 years of
A Century of consumer protection and education of
Pride and REALTOR® members.
Professionalism
In 1913, the REALTOR®
Code of Ethics was adopted in
Winnipeg, Canada

3.  a primary reason for NAR’s formation
Why was the establishment of ethical
the Code Exists standards
 no license laws or regulations for real
estate professionals existed 100
years ago
 buyers and sellers had to be careful of
unethical and self-serving real estate
dealers

4.  NAR’s founders believed that
Why
brokerage must:
the Code Exists
 be organized
 be regulated
 hold its members to high standards
 NAR’s founders wanted these high
standards enforced to protect buyers
and sellers

5. The First Code  contained 23 Articles
of Ethics 1913  set forth duties to other brokers and
clients
 many of the original Articles remain
essentially unchanged, e.g., the
concept of cooperation and resolving
disputes through arbitration

6. The Code The Code is a living, growing (and
Changes sometimes shrinking) document.
 First Code: 23 Articles
 Current Code: 17 Articles
 Longest Code: 36 Articles (1915)
 Shortest Code: 17 Articles (currently,
since 1994)
 Undergoes continuous review and
scrutiny
 Code has been amended approx. 40
times since 1913

7. Structure of the  Preamble (aspirational)
Code of Ethics  Three sections
 Duties to clients and customers
 Duties to the public
 Duties to other REALTORS®
 17 Articles (enforceable)
 88 Standards of Practice

8.  Code represents a “gift of vision”
of professionalism
The Code’s
Preamble  the “Golden Rule”
 private ownership of land
“Under all is the land”
indispensable to a viable
democracy and prosperous
society
 common responsibility for
integrity and honor

9. Structure of the 17 Articles
Code of Ethics  each section is comprised of
Articles – broad statements of
ethical principles
 only Articles of the Code may be
alleged to have been violated. A
REALTOR® may only be
disciplined for violating an Article.

10. Structure of the Standards of Practice
Code of Ethics  support, interpret, and amplify
each Article
 may not be alleged to have been
violated, but may be cited in
support of an alleged violation of
an Article

11. Basic Principles Article 1:
of the Protect and promote your client’s
Code of Ethics
interests, but be honest with all
parties.

12. Basic Principles Article 2:
of the Avoid exaggeration,
Code of Ethics
misrepresentation, and
concealment of pertinent facts.
Do not reveal facts that are
confidential under the scope of your
agency relationship.

13. Basic Principles Article 3:
of the Cooperate with other real estate
Code of Ethics
professionals to advance your
client’s best interests.

14. Basic Principles Article 4:
of the When buying for yourself,
Code of Ethics
immediate family, your firm, or
any member thereof, make your
true position in the transaction
known to the owner or owner’s
broker.

15. Basic Principles Article 4 (continued):
of the When selling property you own,
Code of Ethics
or in which you have a legal
interest, reveal your ownership
or interest in writing to the
purchaser or purchaser’s
representative.

16. Basic Principles Article 5:
of the Disclose your present or
Code of Ethics
contemplated interest in any
property to all parties.

17. Basic Principles Article 6:
of the Avoid side deals without your
Code of Ethics
client’s informed consent.
When recommending real estate
products or services, disclose any
financial benefit or fee you will
receive as a result of the
recommendation.

18. Basic Principles Article 7:
of the Accept compensation from only one
Code of Ethics
party, except with full disclosure to
all parties and the informed consent
of your client(s).

19. Basic Principles Article 8:
of the Keep the funds of clients and
Code of Ethics
customers in a special account in
an appropriate financial institution,
separate from your own money.

20. Basic Principles Article 9:
of the Assure, whenever possible, that
Code of Ethics
transactional details are in
writing, in clear and
understandable language.
Provide a copy of each
agreement to each party upon
their signing or initialing.

21. Basic Principles Article 10:
of the Provide equal service to all clients
Code of Ethics
and customers.
Do not discriminate in your
employment practices against any
person on the basis of race, color,
religion, sex, handicap, familial
status, national origin, or sexual
orientation.

22. Basic Principles Article 11:
of the Be knowledgeable and competent
Code of Ethics
in the fields of practice in which you
ordinarily engage. Obtain
assistance or disclose lack of
experience, if necessary.

23. Basic Principles Article 12:
of the Communicate honestly in all of your
Code of Ethics
real estate communications.
Present a true picture in your
advertising, marketing and all
representations.

24. Basic Principles Article 13:
of the Do not engage in the unauthorized
Code of Ethics
practice of law. Recommend that
legal counsel be obtained when the
interest of any party to the
transaction requires it.

25. Basic Principles Article 14:
of the Place all pertinent facts before the
Code of Ethics
proper tribunal:
 grievance committee functions
like a grand jury
 hearing panel functions like a
judge and jury
 board of directors functions like
an appellate body

26. Basic Principles Article 14 (continued):
of the Be a willing participant in Code
Code of Ethics
enforcement procedures.
Take no action to disrupt or
obstruct the Code enforcement
process.

27. Basic Principles Article 15:
of the Ensure that your comments
Code of Ethics
about other real estate
professionals are truthful, and
not misleading. Make no false
or misleading statements about
other real estate professionals,
their businesses or their
business practices.

28. Basic Principles Article 16:
of the Respect the exclusive
Code of Ethics
representation or exclusive
brokerage relationship agreements
that other REALTORS® have with
their clients.

29. Basic Principles Article 17:
of the Arbitrate and mediate contractual
Code of Ethics
and specific non-contractual
disputes (see Standard of Practice
17-4) with other REALTORS® and
with your clients.

30.  The “blueprint” for administering the
How the Code is professional standards process to
Enforced: enforce the Code and resolve
Code of Ethics and
Arbitration Manual financial disputes between
REALTORS®
 Features Case Interpretations – fact
situations to which each Article and/or
Standard of Practice are applied.

31. How the Code is Enforced:
Professional Standards Process
Ethics Complaint Staff Arbitration Request
Dismiss or refer for Dismiss or refer for
Grievance Committee
hearing (with or hearing on mandatory
without amending) or voluntary basis
Hearing Panel
Affirm if no appeal; Board of Directors After hearing, award is
otherwise hear appeal. final, if no procedural
review requested

32.  Letter of Warning
 Letter of Reprimand
How the Code
is Enforced:  Education
Authorized  Fine not to exceed $5,000
Hearing Panel
 Probation for 1 year or less
Discipline
 Suspension for not less than 30
days nor more than one year
 Expulsion from membership for a
period of 1 to 3 years
 Suspension or termination of MLS
privileges

33. REALTOR® Code of Ethics Centennial:
A Century of Pride and
Professionalism
For the last 100 years,
t h e R E A LT O R ® C o d e o f E t h i c s
has held members of the
National Association to a
higher criterion of excellence,
reaffirming their commitment to encouraging and
protecting property ownership and
ensuring wise stewardship of our nation’s
land and resources.

34. REALTOR® Code of Ethics Centennial:
A Century of Pride and
Professionalism
I n i t s s e c o n d c e n t u r y, t h e C o d e w i l l
continue to adapt to the needs of a
vibrant, professional, ethical
real estate community and continue
t o d i s t i n g u i s h R E A LTO R S ® a n d
t h e i r c o m m i t m e n t t o i n t e g r i t y.

35. REALTOR® Code of Ethics Centennial:
A Century of Pride and
Professionalism
For more information on how you can
celebrate the Code of Ethics Centennial,
please visit
h t t p : / / w w w . r e a l t o r. o r g / c o e c e n t e n n i a l
Or contact the Member Policy Department at
t h e N a t i o n a l A s s o c i a t i o n o f R E A LT O R S ® :
Te l e p h o n e : 8 0 0 - 8 7 4 - 6 5 0 0 , e x t e n s i o n 8 3 9 9
E m a i l : M e m b e r _ p o l i c y @ r e a l t o r. o r g