Amendments/Addition to the REALTOR® Code of Ethics
By Sue Lusk-Gleich, Chair
Professional Standards Committee
The Professional Standards Committee is a standing committee of our Board. Committee members are appointed by the President to serve 3-year terms. The committee member’s primary responsibility is to serve on hearing panels to hear matters of alleged unethical conduct by Board members and to provide arbitration as requested by Board members. There are several other key elements in CBR’s Strategic Plan that fall within the scope of the Professional Standards:
• Improve the image of REALTORS®
• Enhance CBR’s value and member’s perception of it’s values
• Increase ethical behavior
• Increase educational opportunities for members
Apprising you of changes to the Code of Ethics falls within the scope of our committee responsibilities. As such, you should be aware of some important changes that became effective Jan.1, 2003. The changes include the adoption of a new Standard of Practice (SOP) and the amendment of two existing ones.
STANDARD OF PRACTICE 1-12:
This existing SOP requires REALTORS® to make certain disclosures regarding their company’s policies when entering into a listing contract. Among those is the obligation to advise the seller of the brokerage’s policy on cooperation and compensation offered to other brokers. Previously this section required that the brokerage’s “general policy” be disclosed. Effective Jan. 1, 2003 it now requires disclosure of “ the REALTORS® company policies regarding cooperation and the amount(s) of any compensation that will be offered.”
STANDARD OF PRACTICE 1-15:
This newly adopted SOP provides that “REALTORS®, in response to inquires from buyers or cooperating brokers shall, with the sellers’ approval, divulge existing offers on the property.”
This provision confirms the advise of both NAR and OAR regarding multiple offer situations — that the existence of any other offer should only be disclosed to a buyer or their agent with the seller’s approval to do so.
STANDARD OF PRACTICE 16-13:
This existing SOP provides that all dealings with either a buyer or seller who is subject to an exclusive agreement must be carried on with that seller or buyer’s agent, unless the agent consents otherwise. A new paragraph has been added to this section that now requires REALTORS® to ask prospective buyers or sellers whether they are subject to an exclusive agency agreement before providing any “substantive services”. Examples of substantive services include writing an offer or presenting a CMA for a prospect.
Should you have questions arising from these changes or current Standards of Practice, you can view the complete Code of Ethics by going to www.realtor.org or call OAR’s Information Central at 1-800-879-4636.
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