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Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS®

Effective January 1, 2005

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 and to conduct
their business in accordance with the tenets set forth below.

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 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 1/04)

• 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 non-agency 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; and

4) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g.
listing broker, subagent,
landlord’s agent, etc. (Adopted 1/93, Renumbered 1/98, Amended 1/04)

• 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, divulge the
existence of offers on the property. (Adopted 1/03)

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)

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
Except as provided in Standard of Practice 10-3, 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. (Adopted 1/94, Amended 1/05)

• Standard of Practice 10-2
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)

• Standard of Practice 10-3
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)

• 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)

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
without disclosing the name of the firm. (Adopted 11/86)

• 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)

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)

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.
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)

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. 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)

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)

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 and 2004.

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.

REALTORS subscribe to a stringent code of ethics