Effective January 1, 2007

Where the word Realtors® is used in this Code and Preamble, it shall be deemed to include REALTOR-ASSOCIATE® s .

While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.

Preamble...

Under all is the land. Upon its wise utilization and widely allocated
ownership depend the survival and growth of free institutions and of our
civilization. REALTORS® should recognize that the interests of the nation
and its citizens require the highest and best use of the land and the
widest distribution of land ownership. They require the creation of
adequate housing, the building of functioning cities, the development
of productive industries and farms, and the preservation of a healthful
environment.

Such interests impose obligations beyond those of ordinary commerce.
They impose grave social responsibility and a patriotic duty to which
REALTORS® should dedicate themselves, and for which they should be
diligent in preparing themselves. REALTORS®, therefore, are zealous to
maintain and improve the standards of their calling and share with their
fellow REALTORS® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients,
customers, the public, and each other, REALTORS® continuously strive to
become and remain informed on issues affecting real estate and, as
knowledgeable professionals, they willingly share the fruit of their
experience and study with others. They identify and take steps, through
enforcement of this Code of Ethics and by assisting appropriate
regulatory bodies, to eliminate practices which may damage the public
or which might discredit or bring dishonor to the real estate profession.
REALTORS® having direct personal knowledge of conduct that may
violate the Code of Ethics involving misappropriation of client or
customer funds or property, willful discrimination, or fraud resulting in
substantial economic harm, bring such matters to the attention of the
appropriate Board or Association of REALTORS®. (Amended 1/00)

Realizing that cooperation with other real estate professionals promotes
the best interests of those who utilize their services, REALTORS® urge
exclusive representation of clients; do not attempt to gain any unfair
advantage over their competitors; and they refrain from making
unsolicited comments about other practitioners. In instances where their
opinion is sought, or where REALTORS® believe that comment is
necessary, their opinion is offered in an objective, professional manner,
uninfluenced by any personal motivation or potential advantage or gain.

The term REALTOR® has come to connote competency, fairness, and
high integrity resulting from adherence to a lofty ideal of moral
conduct in business relations. No inducement of profit and no
instruction from clients ever can justify departure from this ideal.
In the interpretation of this obligation, REALTORS® can take no safer
guide than that which has been handed down through the centuries,
embodied in the Golden Rule, “Whatsoever ye would that others
should do to you, do ye even so to them.”

Accepting this standard 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. (Amended 1/07)

Duties to Clients and Customers

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an
agent, REALTORS® pledge themselves to protect and promote the
interests of their client. This obligation to the client is primary, but it
does not relieve REALTORS® of their obligation to treat all parties
honestly. When serving a buyer, seller, landlord, tenant or other party
in a non-agency capacity, REALTORS® remain obligated to treat all
parties honestly. (Amended 1/01)

• Standard of Practice 1-1

REALTORS®, when acting as principals in a real estate transaction,
remain obligated by the duties imposed by the Code of Ethics.
(Amended 1/93)

• Standard of Practice 1-2

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.
The duties the Code of Ethics imposes are applicable whether
REALTORS® are acting as agents or in legally recognized non-agency
capacities except that any duty imposed exclusively on agents by law
or regulation shall not be imposed by this Code of Ethics on
REALTORS® acting in non-agency capacities.

As used in this Code of Ethics, “client” means the person(s) or
entity(ies) with whom a REALTOR® or a REALTOR®’s firm
has an agency or legally recognized non-agency relationship;
“customer” means a party to a real estate transaction who receives
information, services, or benefits but has no contractual relationship
with the REALTOR® or the REALTOR®’s firm; “prospect” means a
purchaser, seller, tenant, or landlord who is not subject to a
representation relationship with the REALTOR® or REALTOR®’s firm;
“agent” means a real estate licensee (including brokers and sales
associates) acting in an agency relationship as defined by state law or
regulation; and “broker” means a real estate licensee (including
brokers and sales associates) acting as an agent or in a legally
recognized non-agency capacity. (Adopted 1/95, Amended 1/07)

• Standard of Practice 1-3

REALTORS®, in attempting to secure a listing, shall not deliberately
mislead the owner as to market value.

• Standard of Practice 1-4

REALTORS®, when seeking to become a buyer/tenant representative,
shall not mislead buyers or tenants as to savings or other benefits
that might be realized through use of the REALTOR®’s services.
(Amended 1/93)

• Standard of Practice 1-5

REALTORS® may represent the seller/landlord and buyer/tenant in the
same transaction only after full disclosure to and with informed
consent of both parties. (Adopted 1/93)

• Standard of Practice 1-6

REALTORS® shall submit offers and counter-offers objectively and as
quickly as possible. (Adopted 1/93, Amended 1/95)

• Standard of Practice 1-7

When acting as listing brokers, REALTORS® shall continue to submit
to the seller/landlord all offers and counter-offers until closing or
execution of a lease unless the seller/landlord has waived this
obligation in writing. REALTORS® shall not be obligated to continue to
market the property after an offer has been accepted by the
seller/landlord. REALTORS® shall recommend that sellers/landlords
obtain the advice of legal counsel prior to acceptance of a subsequent
offer except where the acceptance is contingent on the termination of
the pre-existing purchase contract or lease. (Amended 1/93)

• Standard of Practice 1-8

REALTORS®, acting as agents or brokers of buyers/tenants, shall
submit to buyers/tenants all offers and counter-offers until
acceptance but have no obligation to continue to show properties to
their clients after an offer has been accepted unless otherwise agreed
in writing. REALTORS®, acting as agents or brokers of buyers/tenants,
shall recommend that buyers/tenants obtain the advice of legal
counsel if there is a question as to whether a pre-existing contract has
been terminated. (Adopted 1/93, Amended 1/99)

• Standard of Practice 1-9

The obligation of REALTORS® to preserve confidential information (as
defined by state law) provided by their clients in the course of any
agency relationship or non-agency relationship recognized by law
continues after termination of agency relationships or any nonagency
relationships recognized by law. REALTORS® shall not
knowingly, during or following the termination of professional
relationships with their clients:

1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the REALTOR®’s advantage
or the advantage of third parties unless:

a) clients consent after full disclosure; or
b) REALTORS® are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary
to prevent the crime; or
d) it is necessary to defend a REALTOR® or the REALTOR®’s employees or
associates against an accusation of wrongful

conduct.
Information concerning latent material defects is not considered
confidential information under this Code of Ethics. (Adopted 1/93,
Amended 1/01)

• Standard of Practice 1-10

REALTORS® shall, consistent with the terms and conditions of their
real estate licensure and their property management agreement,
competently manage the property of clients with due regard for the
rights, safety and health of tenants and others lawfully on the
premises. (Adopted 1/95, Amended 1/00)

• Standard of Practice 1-11

REALTORS® who are employed to maintain or manage a client’s
property shall exercise due diligence and make reasonable efforts to
protect it against reasonably foreseeable contingencies and losses.
(Adopted 1/95)

• Standard of Practice 1-12

When entering into listing contracts, REALTORS® must advise
sellers/landlords of:

1) the REALTOR®’s company policies regarding cooperation and the
amount(s) of any compensation that will be offered to subagents,
buyer/tenant agents, and/or brokers acting in legally recognized
non-agency capacities;

2) the fact that buyer/tenant agents or brokers, even if compensated
by listing brokers, or by sellers/landlords may represent the
interests of buyers/tenants; and

3) any potential for listing brokers to act as disclosed
dual agents, e.g. buyer/tenant agents. (Adopted 1/93, Renumbered
1/98, Amended 1/03)

• Standard of Practice 1-13

When entering into buyer/tenant agreements, REALTORS® must advise
potential clients of:

1) the REALTOR®’s company policies regarding cooperation;
2) the amount of compensation to be paid by the client;
3) the potential for additional or offsetting compensation from other
brokers, from the seller or landlord, or from other parties;
4) any potential for the buyer/tenant representative to act as a
disclosed dual agent, e.g. listing broker, subagent, landlord’s agent, etc., and
5) the possibility that sellers or sellers’ representatives may not treat
the existence, terms, or conditions of offers as confidential
unless confidentiality is required by law, regulation, or by any
confidentiality agreement between the parties. (Adopted 1/93,
Renumbered 1/98, Amended 1/06)

• Standard of Practice 1-14

Fees for preparing appraisals or other valuations shall not be contingent
upon the amount of the appraisal or valuation. (Adopted 1/02)

• Standard of Practice 1-15

REALTORS®, in response to inquiries from buyers or cooperating
brokers shall, with the sellers’ approval, disclose the existence of
offers on the property. Where disclosure is authorized, REALTORS®
shall also disclose whether offers were obtained by the listing
licensee, another licensee in the listing firm, or by a cooperating
broker. (Adopted 1/03, Amended 1/06)

Article 2

REALTORS® shall avoid exaggeration, misrepresentation, or concealment
of pertinent facts relating to the property or the transaction. REALTORS®
shall not, however, be obligated to discover latent defects in the property,
to advise on matters outside the scope of their real estate license, or to
disclose facts which are confidential under the scope of agency or
non-agency relationships as defined by state law. (Amended 1/00)

• Standard of Practice 2-1

REALTORS® shall only be obligated to discover and disclose adverse
factors reasonably apparent to someone with expertise in those areas
required by their real estate licensing authority. Article 2 does not
impose upon the REALTOR® the obligation of expertise in other
professional or technical disciplines. (Amended 1/96)

• Standard of Practice 2-2

(Renumbered as Standard of Practice 1-12 1/98)

• Standard of Practice 2-3

(Renumbered as Standard of Practice 1-13 1/98)

• Standard of Practice 2-4

REALTORS® shall not be parties to the naming of a false consideration
in any document, unless it be the naming of an obviously nominal
consideration.

• Standard of Practice 2-5

Factors defined as “non-material” by law or regulation or which are
expressly referenced in law or regulation as not being subject to
disclosure are considered not “pertinent” for purposes of Article 2.
(Adopted 1/93)

Article 3

REALTORS® shall cooperate with other brokers except when cooperation
is not in the client’s best interest. The obligation to cooperate does not
include the obligation to share commissions, fees, or to otherwise
compensate another broker. (Amended 1/95)

• Standard of Practice 3-1

REALTORS®, acting as exclusive agents or brokers of sellers/
landlords, establish the terms and conditions of offers to cooperate.
Unless expressly indicated in offers to cooperate, cooperating
brokers may not assume that the offer of cooperation includes an
offer of compensation. Terms of compensation, if any, shall be
ascertained by cooperating brokers before beginning efforts to
accept the offer of cooperation. (Amended 1/99)

• Standard of Practice 3-2

REALTORS® shall, with respect to offers of compensation to another
REALTOR®, timely communicate any change of compensation for
cooperative services to the other REALTOR® prior to the time such
REALTOR® produces an offer to purchase/lease the property.
(Amended 1/94)

• Standard of Practice 3-3

Standard of Practice 3-2 does not preclude the listing broker and
cooperating broker from entering into an agreement to change
cooperative compensation. (Adopted 1/94)

• Standard of Practice 3-4

REALTORS®, acting as listing brokers, have an affirmative obligation to
disclose the existence of dual or variable rate commission
arrangements (i.e., listings where one amount of commission is
payable if the listing broker’s firm is the procuring cause of sale/lease
and a different amount of commission is payable if the sale/lease
results through the efforts of the seller/landlord or a cooperating
broker). The listing broker shall, as soon as practical, disclose the
existence of such arrangements to potential cooperating brokers and
shall, in response to inquiries from cooperating brokers, disclose the
differential that would result in a cooperative transaction or in a
sale/lease that results through the efforts of the seller/landlord. If the
cooperating broker is a buyer/tenant representative, the buyer/tenant
representative must disclose such information to their client before
the client makes an offer to purchase or lease. (Amended 1/02)

• Standard of Practice 3-5

It is the obligation of subagents to promptly disclose all pertinent
facts to the principal’s agent prior to as well as after a purchase or
lease agreement is executed. (Amended 1/93)

• Standard of Practice 3-6

REALTORS® shall disclose the existence of accepted offers, including
offers with unresolved contingencies, to any broker seeking
cooperation. (Adopted 5/86, Amended 1/04)

• Standard of Practice 3-7

When seeking information from another REALTOR® concerning
property under a management or listing agreement, REALTORS® shall
disclose their REALTOR® status and whether their interest is personal
or on behalf of a client and, if on behalf of a client, their
representational status. (Amended 1/95)

• Standard of Practice 3-8

REALTORS® shall not misrepresent the availability of access to show
or inspect a listed property. (Amended 11/87)

Article 4

REALTORS® shall not acquire an interest in or buy or present offers from
themselves, any member of their immediate families, their firms or any
member thereof, or any entities in which they have any ownership
interest, any real property without making their true position known to
the owner or the owner’s agent or broker. In selling property they own,
or in which they have any interest, REALTORS® shall reveal their
ownership or interest in writing to the purchaser or the purchaser’s
representative. (Amended 1/00)

• Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4
shall be in writing and provided by REALTORS® prior to the signing of
any contract. (Adopted 2/86)

Article 5

REALTORS® shall not undertake to provide professional services
concerning a property or its value where they have a present or
contemplated interest unless such interest is specifically disclosed to
all affected parties.

Article 6

REALTORS® shall not accept any commission, rebate, or profit
on expenditures made for their client, without the client’s knowledge
and consent.
When recommending real estate products or services (e.g.,
homeowner’s insurance, warranty programs, mortgage financing, title
insurance, etc.), REALTORS® shall disclose to the client or customer to
whom the recommendation is made any financial benefits or fees, other
than real estate referral fees, the REALTOR® or REALTOR®’s firm may
receive as a direct result of such recommendation. (Amended 1/99)

• Standard of Practice 6-1

REALTORS® shall not recommend or suggest to a client or a
customer the use of services of another organization or business
entity in which they have a direct interest without disclosing
such interest at the time of the recommendation or suggestion.
(Amended 5/88)

Article 7

In a transaction, REALTORS® shall not accept compensation from more
than one party, even if permitted by law, without disclosure to all
parties and the informed consent of the REALTOR®’s client or clients.
(Amended 1/93)

Article 8

REALTORS® shall keep in a special account in an appropriate financial
institution, separated from their own funds, monies coming into their
possession in trust for other persons, such as escrows, trust funds,
clients’ monies, and other like items.

Article 9

REALTORS®, for the protection of all parties, shall assure whenever
possible that all agreements related to real estate transactions including,
but not limited to, listing and representation agreements, purchase
contracts, and leases are in writing in clear and understandable language
expressing the specific terms, conditions, obligations and commitments
of the parties. A copy of each agreement shall be furnished to each party
to such agreements upon their signing or initialing. (Amended 1/04)

• Standard of Practice 9-1

For the protection of all parties, REALTORS® shall use reasonable care
to ensure that documents pertaining to the purchase, sale, or lease of
real estate are kept current through the use of written extensions or
amendments. (Amended 1/93)

• 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. (Adopted 1/07)

Duties to the Public

Article 10

REALTORS® shall not deny equal professional services to any person for
reasons of race, color, religion, sex, handicap, familial status, or
national origin. REALTORS® shall not be parties to any plan or
agreement to discriminate against a person or persons on the basis of
race, color, religion, sex, handicap, familial status, or national origin.
(Amended 1/90)

REALTORS®, in their real estate employment practices, shall not
discriminate against any person or persons on the basis of race,
color, religion, sex, handicap, familial status, or national origin.
(Amended 1/00)

• Standard of Practice 10-1

When involved in the sale or lease of a residence, REALTORS®
shall not volunteer information regarding the racial, religious
or ethnic composition of any neighborhood nor shall they engage in any
activity which may result in panic selling, however, REALTORS® may
provide other demographic information. (Adopted 1/94, Amended 1/06)

• Standard of Practice 10-2

When not involved in the sale or lease of a residence, REALTORS® may
provide demographic information related to a property, transaction
or professional assignment to a party if such demographic
information is (a) deemed by the REALTOR® to be needed to assist
with or complete, in a manner consistent with Article 10, a real estate
transaction or professional assignment and (b) is obtained or derived
from a recognized, reliable, independent, and impartial source. The
source of such information and any additions, deletions,
modifications, interpretations, or other changes shall be disclosed in
reasonable detail. (Adopted 1/05, Renumbered 1/06)

• Standard of Practice 10-3

REALTORS® shall not print, display or circulate any statement or
advertisement with respect to selling or renting of a property that
indicates any preference, limitations or discrimination based on race,
color, religion, sex, handicap, familial status, or national origin.
(Adopted 1/94, Renumbered 1/05 and 1/06)

• Standard of Practice 10-4

As used in Article 10 “real estate employment practices” relates to
employees and independent contractors providing real estate-related
services and the administrative and clerical staff directly supporting
those individuals. (Adopted 1/00, Renumbered 1/05 and 1/06)

Article 11

The services which REALTORS® provide to their clients and customers
shall conform to the standards of practice and competence which are
reasonably expected in the specific real estate disciplines in which they
engage; specifically, residential real estate brokerage, real property
management, commercial and industrial real estate brokerage, real
estate appraisal, real estate counseling, real estate syndication, real
estate auction, and international real estate.

REALTORS® shall not undertake to provide specialized professional
services concerning a type of property or service that is outside their
field of competence unless they engage the assistance of one who is
competent on such types of property or service, or unless the facts are
fully disclosed to the client. Any persons engaged to provide such
assistance shall be so identified to the client and their contribution to
the assignment should be set forth. (Amended 1/95)

• Standard of Practice 11-1

When REALTORS® prepare opinions of real property value or price, other
than in pursuit of a listing or to assist a potential purchaser in
formulating a purchase offer, such opinions shall include the following:

1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and
intended user(s)
5) any present or contemplated interest, including the possibility of
representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect
(Amended 1/01)

• Standard of Practice 11-2

The obligations of the Code of Ethics in respect of real estate
disciplines other than appraisal shall be interpreted and applied in
accordance with the standards of competence and practice which
clients and the public reasonably require to protect their rights and
interests considering the complexity of the transaction, the
availability of expert assistance, and, where the REALTOR® is an agent
or subagent, the obligations of a fiduciary. (Adopted 1/95)

• Standard of Practice 11-3

When REALTORS® provide consultive services to clients which
involve advice or counsel for a fee (not a commission), such advice
shall be rendered in an objective manner and the fee shall not be
contingent on the substance of the advice or counsel given. If
brokerage or transaction services are to be provided in addition to
consultive services, a separate compensation may be paid with prior
agreement between the client and REALTOR®. (Adopted 1/96)

• Standard of Practice 11-4

The competency required by Article 11 relates to services contracted
for between REALTORS® and their clients or customers; the duties
expressly imposed by the Code of Ethics; and the duties imposed by
law or regulation. (Adopted 1/02)

Article 12

REALTORS® shall be careful at all times to present a true picture in their
advertising and representations to the public. REALTORS® shall also
ensure that their professional status (e.g., broker, appraiser, property
manager, etc.) or status as REALTORS® is clearly identifiable in any such
advertising. (Amended 1/93)

• Standard of Practice 12-1

REALTORS® may use the term “free” and similar terms in their
advertising and in other representations provided that all terms
governing availability of the offered product or service are clearly
disclosed at the same time. (Amended 1/97)

• Standard of Practice 12-2

REALTORS® may represent their services as “free” or without cost even
if they expect to receive compensation from a source other than their
client provided that the potential for the REALTOR® to obtain a benefit
from a third party is clearly disclosed at the same time. (Amended 1/97)

• Standard of Practice 12-3

The offering of premiums, prizes, merchandise discounts or other
inducements to list, sell, purchase, or lease is not, in itself, unethical
even if receipt of the benefit is contingent on listing, selling,
purchasing, or leasing through the REALTOR® making the offer.
However, REALTORS® must exercise care and candor in any such
advertising or other public or private representations so that any
party interested in receiving or otherwise benefiting from the
REALTOR®’s offer will have clear, thorough, advance understanding
of all the terms and conditions of the offer. The offering of any
inducements to do business is subject to the limitations and
restrictions of state law and the ethical obligations established by any
applicable Standard of Practice. (Amended 1/95)

• Standard of Practice 12-4

REALTORS® shall not offer for sale/lease or advertise property without
authority. When acting as listing brokers or as subagents, REALTORS®
shall not quote a price different from that agreed upon with the
seller/landlord. (Amended 1/93)

• Standard of Practice 12-5

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. (Adopted 11/86, Amended 1/07)

• Standard of Practice 12-6

REALTORS®, when advertising unlisted real property for sale/lease in
which they have an ownership interest, shall disclose their status as
both owners/landlords and as REALTORS® or real estate licensees.
(Amended 1/93)

• Standard of Practice 12-7

Only REALTORS® who participated in the transaction as the listing
broker or cooperating broker (selling broker) may claim to have “sold”
the property. Prior to closing, a cooperating broker may post a “sold”
sign only with the consent of the listing broker. (Amended 1/96)

• Standard of Practice 12-8

The obligation to present a true picture in representations to the
public includes information presented, provided, or displayed on
REALTORS®’ 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, REALTORS® shall promptly take corrective
action. (Adopted 1/07)

• 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. (Adopted 1/07)

• Standard of Practice 12-10

REALTORS®’ obligation to present a true picture in their 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. (Adopted 1/07)

• 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. (Adopted 1/07)

Article 13

REALTORS® shall not engage in activities that constitute the
unauthorized practice of law and shall recommend that legal counsel
be obtained when the interest of any party to the transaction
requires it.

Article 14

If charged with unethical practice or asked to present evidence or to
cooperate in any other way, in any professional standards proceeding
or investigation, REALTORS® shall place all pertinent facts before the
proper tribunals of the Member Board or affiliated institute, society, or
council in which membership is held and shall take no action to disrupt
or obstruct such processes. (Amended 1/99)

• Standard of Practice 14-1

REALTORS® shall not be subject to disciplinary proceedings in more
than one Board of REALTORS® or affiliated institute, society or
council in which they hold membership with respect to alleged
violations of the Code of Ethics relating to the same transaction or
event. (Amended 1/95)

• Standard of Practice 14-2

REALTORS® shall not make any unauthorized disclosure or
dissemination of the allegations, findings, or decision developed in
connection with an ethics hearing or appeal or in connection with an
arbitration hearing or procedural review. (Amended 1/92)

• Standard of Practice 14-3

REALTORS® shall not obstruct the Board’s investigative or
professional standards proceedings by instituting or threatening to
institute actions for libel, slander or defamation against any party to
a professional standards proceeding or their witnesses based on the
filing of an arbitration request, an ethics complaint, or testimony
given before any tribunal. (Adopted 11/87, Amended 1/99)

• Standard of Practice 14-4

REALTORS® shall not intentionally impede the Board’s investigative
or disciplinary proceedings by filing multiple ethics complaints
based on the same event or transaction. (Adopted 11/88)

Duties to REALTORS®

Article 15

REALTORS® shall not knowingly or recklessly make false or misleading
statements about competitors, their businesses, or their business
practices. (Amended 1/92)

• Standard of Practice 15-1

REALTORS® shall not knowingly or recklessly file false or unfounded
ethics complaints. (Adopted 1/00)

• Standard of Practice 15-2

The obligation to refrain from making false or misleading statements
about competitors’ businesses and competitors’ business practices
includes the duty to not knowingly or recklessly repeat, retransmit,
or republish false or misleading statements made by others. This
duty applies whether false or misleading statements are repeated in
person, in writing, by technological means (e.g., the Internet), or by
any other means. (Adopted 1/07)

Article 16

REALTORS® shall not engage in any practice or take any action
inconsistent with exclusive representation or exclusive brokerage
relationship agreements that other REALTORS® have with clients.
(Amended 1/04)

• Standard of Practice 16-1

Article 16 is not intended to prohibit aggressive or innovative
business practices which are otherwise ethical and does not prohibit
disagreements with other REALTORS® involving commission, fees,
compensation or other forms of payment or expenses. (Adopted 1/93,
Amended 1/95)

• Standard of Practice 16-2

Article 16 does not preclude REALTORS® from making general
announcements to prospects describing their services and the terms
of their availability even though some recipients may have entered
into agency agreements or other exclusive relationships with another
REALTOR®. A general telephone canvass, general mailing or
distribution addressed to all prospects in a given geographical area or
in a given profession, business, club, or organization, or other
classification or group is deemed “general” for purposes of this
standard. (Amended 1/04)

Article 16 is intended to recognize as unethical two basic types of
solicitations:

First, telephone or personal solicitations of property owners who
have been identified by a real estate sign, multiple listing
compilation, or other information service as having exclusively
listed their property with another REALTOR®; and

Second, mail or other forms of written solicitations of prospects
whose properties are exclusively listed with another REALTOR® when
such solicitations are not part of a general mailing but are directed
specifically to property owners identified through compilations of
current listings, “for sale” or “for rent” signs, or other sources of
information required by Article 3 and Multiple Listing Service rules
to be made available to other REALTORS® under offers of subagency
or cooperation. (Amended 1/04)

• Standard of Practice 16-3

Article 16 does not preclude REALTORS® from contacting the client of
another broker for the purpose of offering to provide, or entering into
a contract to provide, a different type of real estate service unrelated
to the type of service currently being provided (e.g., property
management as opposed to brokerage) or from offering the same
type of service for property not subject to other brokers’ exclusive
agreements. However, information received through a Multiple
Listing Service or any other offer of cooperation may not be used to
target clients of other REALTORS® to whom such offers to provide
services may be made. (Amended 1/04)

• Standard of Practice 16-4

REALTORS® shall not solicit a listing which is currently listed
exclusively with another broker. However, if the listing broker, when
asked by the REALTOR®, refuses to disclose the expiration date and
nature of such listing; i.e., an exclusive right to sell, an exclusive
agency, open listing, or other form of contractual agreement between
the listing broker and the client, the REALTOR® may contact the owner
to secure such information and may discuss the terms upon which
the REALTOR® might take a future listing or, alternatively, may take a
listing to become effective upon expiration of any existing exclusive
listing. (Amended 1/94)

• Standard of Practice 16-5

REALTORS® shall not solicit buyer/tenant agreements from buyers/
tenants who are subject to exclusive buyer/tenant agreements.
However, if asked by a REALTOR®, the broker refuses to disclose the
expiration date of the exclusive buyer/tenant agreement, the
REALTOR® may contact the buyer/tenant to secure such information
and may discuss the terms upon which the REALTOR® might enter into
a future buyer/tenant agreement or, alternatively, may enter into a
buyer/tenant agreement to become effective upon the expiration of
any existing exclusive buyer/tenant agreement. (Adopted 1/94,
Amended 1/98)

• Standard of Practice 16-6

When REALTORS® are contacted by the client of another REALTOR®
regarding the creation of an exclusive relationship to provide the
same type of service, and REALTORS® have not directly or indirectly
initiated such discussions, they may discuss the terms upon which
they might enter into a future agreement or, alternatively, may enter
into an agreement which becomes effective upon expiration of any
existing exclusive agreement. (Amended 1/98)

• Standard of Practice 16-7

The fact that a prospect has retained a REALTOR® as an exclusive
representative or exclusive broker in one or more past transactions
does not preclude other REALTORS® from seeking such prospect’s
future business. (Amended 1/04)

• Standard of Practice 16-8

The fact that an exclusive agreement has been entered into with a
REALTOR® shall not preclude or inhibit any other REALTOR® from
entering into a similar agreement after the expiration of the prior
agreement. (Amended 1/98)

• Standard of Practice 16-9

REALTORS®, prior to entering into a representation agreement, have an
affirmative obligation to make reasonable efforts to determine
whether the prospect is subject to a current, valid exclusive agreement
to provide the same type of real estate service. (Amended 1/04)

• Standard of Practice 16-10

REALTORS®, acting as buyer or tenant representatives or brokers, shall
disclose that relationship to the seller/landlord’s representative or
broker at first contact and shall provide written confirmation of that
disclosure to the seller/landlord’s representative or broker not later
than execution of a purchase agreement or lease. (Amended 1/04)

• Standard of Practice 16-11

On unlisted property, REALTORS® acting as buyer/tenant
representatives or brokers shall disclose that relationship to the
seller/landlord at first contact for that buyer/tenant and shall provide
written confirmation of such disclosure to the seller/landlord not later
than execution of any purchase or lease agreement. (Amended 1/04)
REALTORS® shall make any request for anticipated compensation
from the seller/landlord at first contact. (Amended 1/98)

• Standard of Practice 16-12

REALTORS®, acting as representatives or brokers of sellers/landlords
or as subagents of listing brokers, shall disclose that relationship to
buyers/tenants as soon as practicable and shall provide written
confirmation of such disclosure to buyers/tenants not later than
execution of any purchase or lease agreement. (Amended 1/04)

• Standard of Practice 16-13

All dealings concerning property exclusively listed, or with
buyer/tenants who are subject to an exclusive agreement shall be
carried on with the client’s representative or broker, and not with the
client, except with the consent of the client’s representative or broker
or except where such dealings are initiated by the client.
Before providing substantive services (such as writing a purchase
offer or presenting a CMA) to prospects, REALTORS® shall ask
prospects whether they are a party to any exclusive representation
agreement. REALTORS® shall not knowingly provide substantive
services concerning a prospective transaction to prospects who are
parties to exclusive representation agreements, except with the
consent of the prospects’ exclusive representatives or at the direction
of prospects. (Adopted 1/93, Amended 1/04)

• Standard of Practice 16-14

REALTORS® are free to enter into contractual relationships or to
negotiate with sellers/landlords, buyers/tenants or others who are not
subject to an exclusive agreement but shall not knowingly obligate
them to pay more than one commission except with their informed
consent. (Amended 1/98)

• Standard of Practice 16-15

In cooperative transactions REALTORS® shall compensate cooperating
REALTORS® (principal brokers) and shall not compensate nor
offer to compensate, directly or indirectly, any of the sales
licensees employed by or affiliated with other REALTORS®
without the prior express knowledge and consent of the cooperating
broker.

• Standard of Practice 16-16

REALTORS®, acting as subagents or buyer/tenant representatives or
brokers, shall not use the terms of an offer to purchase/lease to
attempt to modify the listing broker’s offer of compensation to
subagents or buyer/tenant representatives or brokers nor make the
submission of an executed offer to purchase/lease contingent on the
listing broker’s agreement to modify the offer of compensation.
(Amended 1/04)

• Standard of Practice 16-17

REALTORS®, acting as subagents or as buyer/tenant representatives or
brokers, shall not attempt to extend a listing broker’s offer of
cooperation and/or compensation to other brokers without the
consent of the listing broker. (Amended 1/04)

• Standard of Practice 16-18

REALTORS® shall not use information obtained from listing brokers
through offers to cooperate made through multiple listing services or
through other offers of cooperation to refer listing brokers’ clients to
other brokers or to create buyer/tenant relationships with listing
brokers’ clients, unless such use is authorized by listing brokers.
(Amended 1/02)

• Standard of Practice 16-19

Signs giving notice of property for sale, rent, lease, or exchange shall
not be placed on property without consent of the seller/landlord.
(Amended 1/93)

• Standard of Practice 16-20

REALTORS®, prior to or after terminating their relationship with their
current firm, shall not induce clients of their current firm to cancel
exclusive contractual agreements between the client and that firm.
This does not preclude REALTORS® (principals) from establishing
agreements with their associated licensees governing assignability of
exclusive agreements. (Adopted 1/98)

Article 17

In the event of contractual disputes or specific non-contractual disputes
as defined in Standard of Practice 17-4 between REALTORS®
(principals) associated with different firms, arising out of their
relationship as REALTORS®, the REALTORS® shall submit the dispute to
arbitration in accordance with the regulations of their Board or Boards
rather than litigate the matter.

In the event clients of REALTORS® wish to arbitrate contractual disputes
arising out of real estate transactions, REALTORS® shall arbitrate those
disputes in accordance with the regulations of their Board, provided
the clients agree to be bound by the decision.

The obligation to participate in arbitration contemplated by this Article
includes the obligation of REALTORS® (principals) to cause their firms
to arbitrate and be bound by any award. (Amended 1/01)

• Standard of Practice 17-1

The filing of litigation and refusal to withdraw from it by
REALTORS® in an arbitrable matter constitutes a refusal to arbitrate.
(Adopted 2/86)

• Standard of Practice 17-2

Article 17 does not require REALTORS® to arbitrate in those
circumstances when all parties to the dispute advise the Board in
writing that they choose not to arbitrate before the Board.
(Amended 1/93)

• Standard of Practice 17-3

REALTORS®, when acting solely as principals in a real estate
transaction, are not obligated to arbitrate disputes with other
REALTORS® absent a specific written agreement to the contrary.
(Adopted 1/96)

• Standard of Practice 17-4

Specific non-contractual disputes that are subject to arbitration
pursuant to Article 17 are:

1) Where a listing broker has compensated a cooperating broker and
another cooperating broker subsequently claims to be the
procuring cause of the sale or lease. In such cases the
complainant may name the first cooperating broker as respondent
and arbitration may proceed without the listing broker being
named as a respondent. 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. Alternatively, if
the complaint is brought against the listing broker, the listing
broker may name the first cooperating broker as a third-party
respondent. In either instance the decision of the hearing panel as
to procuring cause shall be conclusive with respect to all current
or subsequent claims of the parties for compensation arising out
of the underlying cooperative transaction. (Adopted 1/97,
Amended 1/07)

2) Where a buyer or tenant representative is compensated by the
seller or landlord, and not by the listing broker, and the listing
broker, as a result, reduces the commission owed by the seller or
landlord and, subsequent to such actions, another cooperating
broker claims to be the procuring cause of sale or lease. In such
cases the complainant may name the first cooperating broker as
respondent and arbitration may proceed without the listing broker
being named as a respondent. 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. Alternatively, if
the complaint is brought against the listing broker, the listing
broker may name the first cooperating broker as a third-party
respondent. In either instance the decision of the hearing panel as
to procuring cause shall be conclusive with respect to all current
or subsequent claims of the parties for compensation arising out
of the underlying cooperative transaction. (Adopted 1/97,
Amended 1/07)

3) Where a buyer or tenant representative is compensated by the
buyer or tenant and, as a result, the listing broker reduces the
commission owed by the seller or landlord and, subsequent to
such actions, another cooperating broker claims to be the
procuring cause of sale or lease. In such cases the complainant
may name the first cooperating broker as respondent and
arbitration may proceed without the listing broker being named as
a respondent. Alternatively, if the complaint is brought against the
listing broker, the listing broker may name the first cooperating
broker as a third-party respondent. In either instance the decision
of the hearing panel as to procuring cause shall be conclusive with
respect to all current or subsequent claims of the parties for
compensation arising out of the underlying cooperative
transaction. (Adopted 1/97)

4) Where two or more listing brokers claim entitlement to
compensation pursuant to open listings with a seller or landlord
who agrees to participate in arbitration (or who requests
arbitration) and who agrees to be bound by the decision. In cases
where one of the listing brokers has been compensated by the
seller or landlord, the other listing broker, as complainant, may
name the first listing broker as respondent and arbitration may
proceed between the brokers. (Adopted 1/97)

5) Where a buyer or tenant representative is compensated by the
seller or landlord, and not by the listing broker, and the listing
broker, as a result, reduces the commission owed by the seller or
landlord and, subsequent to such actions, claims to be the
procuring cause of sale or lease. In such cases arbitration shall be
between the listing broker and the buyer or tenant representative
and the amount in dispute is limited to the amount of the reduction
of commission to which the listing broker agreed. (Adopted 1/05)

• Standard of Practice 17-5

The obligation to arbitrate established in Article 17 includes disputes
between REALTORS® (principals) in different states in instances
where, absent an established inter-association arbitration agreement,
the REALTOR® (principal) requesting arbitration agrees to submit to
the jurisdiction of, travel to, participate in, and be bound by any
resulting award rendered in arbitration conducted by the
respondent(s) REALTOR®’s association, in instances where the
respondent(s) REALTOR®’s association determines that an arbitrable
issue exists. (Adopted 1/07)

The Code of Ethics was adopted in 1913. Amended at the Annual
Convention in 1924, 1928, 1950, 1951, 1952, 1955, 1956, 1961, 1962,
1974, 1982, 1986, 1987, 1989, 1990, 1991, 1992, 1993, 1994, 1995,
1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005
and 2006.

Explanatory Notes

The reader should be aware of the following policies which have been
approved by the Board of Directors of the National Association:

In filing a charge of an alleged violation of the Code of Ethics by a
REALTOR®, the charge must read as an alleged violation of one or more
Articles of the Code. Standards of Practice may be cited in support of
the charge.

The Standards of Practice serve to clarify the ethical obligations
imposed by the various Articles and supplement, and do not substitute
for, the Case Interpretations in Interpretations of the Code of Ethics.

Modifications to existing Standards of Practice and additional new
Standards of Practice are approved from time to time. Readers are
cautioned to ensure that the most recent publications are utilized.
©2000, National Association of REALTORS®, All Rights Reserved