Changes
to the Code of Ethics
and Standards of
Practice
(underscoring indicates
additions, strikeouts
indicate deletions)
· Preamble
Revised
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)
· Revised
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 1/04 1/07)
· New 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)
· Revised
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 the that
REALTOR®'s firm in a
reasonable and readily
apparent manner.
(Adopted 11/86, Amended
1/07)
· New 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)
· New 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)
· New 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
REALTORSÒ 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)
· New Standard
of Practice 12-11
REALTORSÒ 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)
· New 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)
· Revised
Standard of Practice
17-4
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 seller
or landlord 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)
· New Standard
of Practice 17-5
The obligation to
arbitrate established in
Article 17 includes
disputes between
REALTORSÒ (principals)
in different states in
instances where, absent
an established
inter–association
arbitration agreement,
the REALTORÒ (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)
REALTORÒ’s association,
in instances where the
respondent(s) REALTORÒ’s
association determines
that an arbitrable issue
exists. (Adopted 1/07)
“Electronically”,
“electronic means”,
“technology”, and
“technological means”
and related terms
include, but are not
limited to, the
Internet, Internet–based
websites, all forms of
Internet communication,
e-mail, facsimile
correspondence,
telephony, and all other
forms of distance
communication.
All members of a
tribunal shall have an
obligation to maintain
and protect the
confidentiality of the
proceedings and
deliberations of the
tribunal before, during,
and after its
determinations and
recommendations. The
tribunal member shall
not discuss the tribunal
proceedings and
deliberations with any
person(s) except as
required by the Board of
Directors, the bylaw
provisions of the Board,
or by law as may be
required, except that a
member of the Grievance
Committee acting
pursuant to the
provisions of Section 20
of Part Four of this
Manual shall not be
precluded from
discussion necessary to
the preliminary review.
Unauthorized disclosure
relates to tribunal
members and to parties
and includes any report
or publication under any
circumstances not
established in this
Manual. (Amended 11/06)
The following are
circumstances where
disclosure by a party to
an ethics and/or
arbitration proceeding
is authorized:
(1) Where the
dissemination of the
decision to individuals
who have some knowledge
of the proceeding might
vindicate a member’s
professional reputation.
(2) Where there is a
civil proceeding
(including proceedings
before the state real
estate licensing
authority or any other
state or federal
regulatory or
administrative agency)
involving the same facts
and circumstances which
gave rise to the
proceeding before the
Board.
(3) Where providing
the decision of an
arbitration hearing
panel to an association
of REALTORSÒ or to an
MLS will enable that
entity to correct
records of sales or
lease transactions or
other historical
records. (Adopted 11/06)
Section 19 (C): Appeal
from the decision of the
Grievance Committee
related to an ethics
complaint
If the Grievance
Committee dismisses the
complaint, the notice of
dismissal shall specify
the reason(s) for
dismissing and the
complainant may appeal
the dismissal to the
Board of Directors
within twenty (20) days
from receipt of the
dismissal notice using
Form #E-22, Appeal of
Grievance Committee
Dismissal of Ethics
Complaint.; however, no
additional information
may be added or attached
to the form. The
complaint and any
attachments to the
complaint cannot be
revised, modified, or
supplemented. The
complainant, may,
however, explain in
writing why the
complainant disagrees
with the Grievance
Committee’s conclusion
that the complaint
should be dismissed. If
the Grievance Committee
deletes an Article or
Articles from an ethics
complaint, the
complainant may also
appeal to the Board of
Directors using Form
#E-22, Appeal of
Grievance Committee
Dismissal of Ethics
Complaint.; however, no
additional information
may be added or attached
to the form. The
Directors (or a panel of
Directors or the
Executive Committee)
shall consider only the
information and
documents considered by
the Grievance Committee,
together with the
complainant’s rationale
for challenging the
dismissal, with the
appeal and render its
decision, which shall be
final. The parties are
not present at the
meeting at which the
appeal is considered.
(Revised 5/97 06)
Section 20
(c-d):
(c) Any action by the
Grievance Committee
dismissing the complaint
as unworthy of further
consideration may be
appealed to the Board of
Directors within twenty
(20) days from receipt
of the dismissal notice
using Form #E-22, Appeal
of Grievance Committee
Dismissal of Ethics
Complaint.; however, no
additional information
may be added or attached
to the form. Only those
The materials and
information which were
available to the
Grievance Committee when
the committee made its
decision will be
presented to the
Directors and considered
with the appeal. , and t
The complainant and
respondent do not have
the right to appear at
the hearing before the
Directors. The
complaint and any
attachments to the
complaint may not be
revised, modified or
supplemented. The
complainant may,
however, explain in
writing why the
complainant disagrees
with the Grievance
Committee’s conclusion
that the complaint
should be dismissed. If
the Directors determine
that the complaint was
improperly dismissed by
the Grievance Committee,
they shall refer it to
the Professional
Standards Committee for
a hearing. If referred
for hearing, the
Secretary shall at that
time provide a copy of
the response to the
complainant if one had
been submitted for
review by the Grievance
Committee. (Revised
11/98 5/06)
The President may
appoint a panel of
Directors, acting on
behalf of the Board of
Directors, to hear the
appeal. Any appeal
panel so appointed must
be composed of at least
five (5) Directors or a
quorum of the Board of
Directors, whichever is
less. (Alternatively,
the appeal may be heard
by the Board’s Executive
Committee.) The
decision of the appeal
panel (or the Executive
Committee) is final and
binding and is not
subject to further
review by the Board of
Directors. (Revised
11/91)
(d) If the complaint
asserts multiple
allegations of unethical
conduct and the
Grievance Committee
determines that one or
more of the allegations
would not, under any
circumstances,
constitute a violation,
that portion of the
complaint may be
dismissed while the
balance of the complaint
is forwarded for a
hearing before a Hearing
Panel of the
Professional Standards
Committee. However, the
complainant has the
right to appeal the
dismissal to the Board
of Directors using Form
#E-22, Appeal of
Grievance Committee
Dismissal of Ethics
Complaint. ; however, no
additional information
may be added or attached
to the form. The
complaint and any
attachments to the
complaint cannot be
revised, modified, or
supplemented. The
complainant may,
however, explain in
writing why the
complainant disagrees
with the Grievance
Committee’s dismissal.
(Revised 5/97 06)
If the Grievance
Committee feels that the
respondent’s alleged
conduct may be the basis
for a violation but that
an inappropriate
Article(s) has been
cited, the Grievance
Committee may amend the
complaint by deleting
any inappropriate
Article(s) and by adding
any appropriate
Article(s) and/or
individuals to the
complaint. If the
complainant disagrees
with the deletion of an
Article(s) from the
complaint, the
complainant may appeal
to the Board of
Directors requesting
that the original
complaint be forwarded
to a Hearing Panel as
filed using Form #E-22,
Appeal of Grievance
Committee Dismissal of
Ethics Complaint.;
however, no additional
information may be added
or attached to the
form. The complaint and
any attachments to the
complaint cannot be
revised, modified, or
supplemented. The
complainant may,
however, explain in
writing why the
complainant disagrees
with the Grievance
Committee’s dismissal.
If the Grievance
Committee determines
that an Article(s) or an
additional respondent(s)
should be added to the
complaint and the
complainant will not
agree to the addition,
the Grievance Committee
may file its own
complaint and both
complaints will be heard
simultaneously by the
same Hearing Panel.
(Revised 5/97 06)
Section 20 (i):
If the Grievance
Committee concludes that
the allegations in the
complaint, if taken as
true, could not support
a finding that the Code
of Ethics had been
violated, then the
complaint shall be
dismissed and the
complainant advised of
the dismissal and of
their right to appeal
the dismissal to the
Board of Directors using
Form #E-22, Appeal of
Grievance Committee
Dismissal of Ethics
Complaint; however, no
additional information
may be added or attached
to the form. The
complaint and any
attachments to the
complaint cannot be
revised, modified, or
supplemented. The
complainant may,
however, explain in
writing why the
complainant disagrees
with the Grievance
Committee’s conclusion
that the complaint
should be dismissed.
(Revised 5/06)
Any person, whether a
member or not, having
reason to believe that a
member is guilty of any
conduct subject to
disciplinary action, may
file a complaint in
writing with the
Secretary, dated and
signed by complainant,
stating the facts on
which it is based (Form
#E-1, Complaint, Part
Six), provided that the
complaint is filed
within one hundred
eighty (180) days after
the facts constituting
the matter complained of
could have been known in
the exercise of
reasonable diligence or
within one hundred
eighty (180) days after
the conclusion of the
transaction, whichever
is later. (Revised 11/97
5/06)
Suspension of filing
deadlines: If the
Board’s informal dispute
resolution processes
(e.g., ombudsman,
mediation, etc.) are
invoked or initiated by
a complainant (or
potential complainant)
with respect to conduct
that becomes the subject
of a subsequent ethics
complaint, the one
hundred eighty (180) day
filing deadline shall be
suspended beginning with
the date of the
complainant’s (or
potential complainant’s)
request for informal
dispute resolution
service or assistance
and shall resume when
the informal dispute
resolution procedures
are concluded or
terminated. Questions
about when informal
dispute resolution began
or ended will be
determined by the Board
President or the
President’s designee.
The Secretary shall
promptly refer any
complaint to the
Chairperson of the
Grievance Committee, who
may designate one or
more members of the
Grievance Committee to
review the complaint and
report their findings to
the Grievance Committee
for its determination as
to whether to (1)
dismiss the complaint as
unworthy of further
consideration, (2) refer
it back to the
complainant as
appropriate for
arbitration rather than
disciplinary action, or
(3) refer it back to the
Secretary to schedule
for hearing. This
review process may
include, if necessary,
information on the
matters complained of if
additional information
appears necessary to
make a knowledgeable
disposition of the
complaint. The
Grievance Committee may,
if it thinks it
appropriate, send a copy
of the complaint to the
party complained of and
require the respondent
to furnish it with a
response before making
its determination. (See
Form #E-4, Grievance
Committee Request for
Information [Ethics
Complaint] and Form
#E-5, Response to
Grievance Committee
Request for Information,
Part Six of this
Manual). The party
complained of shall be
advised that failure to
respond to the Grievance
Committee’s request may
result in the complaint
being forwarded for a
hearing and may subject
the respondent to a
charge of having
violated Article 14 for
failing to submit
pertinent facts to an
appropriate tribunal.
The function of the
Grievance Committee is
to make only such
preliminary review and
evaluation of the
complaint as are
required to determine
whether the complaint
warrants further
consideration by a
Hearing Panel of the
Professional Standards
Committee. The
Grievance Committee does
not conduct hearings and
does not determine if a
violation of the Code of
Ethics has occurred.
In the event the
complaint is from a
client, customer, or a
member of the general
public, and the
Grievance Committee
determines that the
complaint is vague,
overly general, does not
allege violations of
specific Articles, or is
otherwise insufficient
on its face, a member of
the Grievance Committee
may be assigned by the
Chairperson of the
Grievance Committee to
assist the complainant
in preparing the
complaint in proper
form. The member
providing such
assistance shall not
participate in any
consideration or
deliberations of the
Grievance Committee with
respect to the matter.
In such cases, the
respondent shall receive
the revised complaint
with the original
complaint and all other
supporting documentation
provided by the
complainant incorporated
as an appendix.
By becoming and/or
remaining members of
this Board, all members
bind themselves and
agree to submit to
arbitration by the
arbitration facilities
of the __________
(state) Association of
REALTORS® any dispute
with a member of any
other local Board or
__________ (state)
Association of
REALTORS®, provided:
(1) The dispute is a
dispute as defined and
for which arbitration is
required by Article 17
of the Code of Ethics,
and
(2) The ____________
(state) Association of
REALTORS® has
established facilities
for such arbitration.*
Disputes as defined in
Article 17 of the Code
of Ethics requiring
arbitration between
members having no
commonality of Board
membership or MLS
participation may be
submitted and conducted
under the procedure
established in Part
Eleven of this Manual,
subject to such
modification as may be
required by applicable
state law. Whether
arbitration is conducted
by the state association
or by an interboard
arbitration panel
pursuant to Part Eleven,
the costs charged to
parties, including
filing fees, may not
exceed $500. Where
arbitration is conducted
by the state
association, any costs
incurred that exceed the
parties’ filing fees may
be recouped from the
parties’ local
association(s). (Amended
5/06)
The method set forth in
Part Eleven may also be
utilized for the conduct
of arbitration between
Board Members of
different Boards of
different states,
subject to the parties’
voluntary agreement in
advance to accept the
place, date, and | 
