Interpretations of the Code of Ethics
Interpretations of the Code of Ethics has been developed by the Professional Standards Committee of the NATIONAL ASSOCIATION OF REALTORS® to help REALTORS® understand the ethical obligations created by the Code of Ethics, and as a reference work for Grievance Committees, ethics and arbitration Hearing Panels, and Boards of Directors.
Interpretations of the Code of Ethics presents specific situations involving charges of alleged unethical conduct by REALTORS®, which are reviewed by a peer panel of Board Members and in which decisions as to ethical conduct are reached.
Each case provides the Hearing Panel’s decision based on the facts and the rationale for the decision, but does not specify a specific sanction or discipline to be imposed. There are two reasons for this.
- Any sanction imposed must always fit the offense and must involve every consideration of justice, equity, and propriety.
- A Hearing Panel may base its recommendation for discipline on a Member’s past record of ethics violations.
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Case Interpretations relating to:
Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
Article 9 None Existing
Article 10
Article 11
Article 12
Article 13
Article 14
Article 15
Article 16
Article 17
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The Code of Ethics and Arbitration Manual establishes that a Member Board may utilize a wide range of sanctions for ethics violations. These sanctions include:
- Letter of Warning with copy to be placed in Member’s file;
- Letter of Reprimand with copy to be placed in Member’s file;
- Requirement that Member attend the ethics portion of the Board Indoctrination Course or other appropriate course or seminar specified by the Hearing Panel, which the respondent could reasonably attend taking into consideration cost, location, and duration;
- $500 Administrative Hearing Fee
- Appropriate and reasonable fine not to exceed $5,000;
- Member placed on probation for a stated period of time not less than thirty (30) days but no more than one (1) year;
- Membership of individual suspended for a stated period not to exceed one (1) year, with automatic reinstatement of membership in good standing at the end of the specified period of suspension (decision should be written clearly articulating all intended consequences, including denial of MLS participatory or access privileges).
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