ETHICS, you keep hearing it a lot lately. Unfortunately, with
all the recent ethics scandals what we’re hearing is what
ethics is NOT. We call it greed, mistrust, lack of professionalism.
We call it unfair, unjust and we get angry about it. We realized
what it boils down to is people are looking out for themselves
with blatant disregard for their fellowman. It seems they’ve
all forgotten “The Golden Rule, do unto others as you
would have them do unto you.”
So let’s talk about, what is Ethics? At my recent Code
of Ethics training class for REALTORS® I asked just that
question. Honesty, integrity, caring, trustworthiness, accountability,
loyalty and fairness where some of the responses. These all
seemed like good answers, but what we must realize is these
are our values, our fundamental beliefs. They define what
we think is right, good, fair and just. Ethics, on the other
hand, are behaviors and tell people how to act in ways that
meet the standards our values have set for us. The crux of
that distinction is this: It isn’t the company’s
place to tell you what your values ought to be; they come
with you when you enter the workplace. But it is the company’s
responsibility to set behavioral standards and it has an obligation
to train associates in what those standards are.
The dictionary of cultural Literacy defines ethics as, “The
brand of philosophy that deals with morality. Ethics is concerned
with distinguishing between good and evil in the world, between
right and wrong human actions and between virtuous and non-virtuous
characteristics of people.”
Webster’s defines it as, “The principles of conduct
governing an individual or a group, a guiding philosophy.”
In 2001 the National Association of Realtors mandated that
every REALTOR® complete an approved ethics class every
four years. In this class the behavioral standards of our
industry are set forth. We take everyday situations in the
real estate business and teach REALTORS® how to deal with
the a particular issue according to the guidelines of the
Code of Ethics and Standard of Practice of the National Association
of REALTORS®.
The Code of Ethics of the Real Estate Profession was adopted
in 1913. There have been many amendments and changes during
the years to meet the needs of an ever changing industry.
The Code of Ethics deals with duties to clients and customers,
duties to the public and duties to fellow REALTORS®. REALTORS®
are subject to disciplinary action and sanctions if they violate
the duties imposed by the Code of Ethics. (Please go to www.realtor.org
to view a complete copy of the REALTORS® Code of Ethics.)
To sum up “What is Ethics?” I believe ethics is
your habits, your behavior, how you act on a daily basis.
Ethics is your character, it defines who you are. REALTORS®
make a commitment to uphold the principles of the REALTORS®
Code of Ethics which are summarized below.
REALTORS Pledge of Performance and Service
The Code of Ethics consists of seventeen Articles and related
Standards of Practice. The basic principles of the Code are
summarized below.
Duties to Clients and Customers
Article 1
REALTORS® protect and promote their clients’
interests while treating all parties honestly.
Article 2
REALTORS® refrain from exaggeration,
misrepresentation, or concealment of pertinent facts
related to property or transactions.
Article 3
REALTORS® cooperate with other real estate
professionals to advance their clients’ best interests.
Article 4
When buying or selling on their own account or for
their families or firms, REALTORS® make their true
position or interest known.
Article 5
REALTORS® do not provide professional services
where they have any present or contemplated interest
in property without disclosing that interest to all
affected parties.
Article 6
REALTORS® disclose any fee or financial benefit
they may receive from recommending related real
estate products or services.
Article 7
REALTORS® receive compensation from only one
party, except where they make full disclosure and
receive informed consent from their client.
Article 8
REALTORS® keep entrusted funds of clients and
customers in a separate escrow account.
Article 9
REALTORS® make sure that contract details are
Spelled out in writing and that parties receive copies.
Duties Duties to the Public
Article 10
REALTORS® give equal professional service to all
clients and customers irrespective of race, color,
religion, sex, handicap, familial status, or national origin.
Article 11
REALTORS® are knowledgeable and competent in
The fields of practice in which they engage or they get
assistance from a knowledgeable professional, or
disclose any lack of expertise to their client.
Article 12
REALTORS® paint a true picture in their advertising
and in other public representations.
Article 13
REALTORS® do not engage in the unauthorized
practice of law.
Article 14
REALTORS® willingly participate in ethics
investigation and enforcement actions.
Duties to REALTORS®
Article 15
REALTORS® make only truthful, objective
comments about other real estate professionals.
Article 16
REALTORS® respect the exclusive, professional
relationship that other REALTORS® have with their clients.
Article 17
REALTORS® arbitrate financial disagreements with
other REALTORS® and with their clients.
Complete 2005 Code of Ethics
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