Business Ethics, NAR Code of Ethics, and Pathways
to Professionalism
1. Business Ethics
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What are "business ethics?"
- Industry codes and standards
- Company policies and practices
- Individual values
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Business ethics and legal standards
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Business ethics and the REALTORS Code of Ethics
Note: REALTORS® engage in many specialty areas and may be subject to the
various codes and canons of those fields (such as legal ethics, the Uniform
Standards of Professional Appraisal Practice [USPAP], the National Auctioneers
Association [NAA] Code of Ethics, and the codes of the NATIONAL ASSOCIATION
OF REALTORS®’ Institutes, Societies, and Councils, etc.). Regardless of their real
estate specialties or fields of practice, all REALTORS® are bound by the Code of
Ethics of the NATIONAL ASSOCIATION OF REALTORS®.
2. Aspirational Concepts of the Preamble to the Code
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.
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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)

Under all is the land . . .

The Golden Rule

“Widely allocated ownership” and “widest distribution of land ownership”

Maintain and improve the standards of our calling.
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
Share our common responsibility for the integrity and honor of the real estate
profession.
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Become and remain informed about issues affecting real estate.
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Share your experience and expertise with others.
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Identify and eliminate practices that damage the public or might discredit or bring
dishonor to the real estate profession.
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Urge exclusive representation of clients.
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Refrain from taking unfair advantage of your competitors.

Don’t make unsolicited comments about other practitioners.

If your opinion is sought about a competitor (or if you believe a comment is
necessary), offer it in an objective, professional manner.

Remember, the term “REALTOR®” stands for competency, fairness, high
integrity, moral conduct in business relations.

Keep in mind that no inducement of profit or instruction from clients can justify
departure from the Code’s duties.
Important Note: The Preamble may not be the basis for disciplining a
REALTOR®.
3. The Structure of the Code and How It Is Amended

Three major sections
- Duties to Clients and Customers
- Duties to the Public
- Duties to REALTORS®

The Code’s 17 Articles are broad statements of ethical principles
Important Note: Only violations of the Articles can result in disciplinary action.

The Standards of Practice support, interpret, and amplify the Articles under
which they are stated
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- REALTORS® may not be found in violation of a Standard of Practice, only its
foundational Article.
- Standards of Practice may be cited in support of an alleged violation of an
Article (such as a violation of Article 1, as interpreted by Standard of Practice
1-3).

The “Official Case Interpretations” are specific fact situations that explain Articles
and/or Standards of Practice

How the Code evolves
- When needed, amendments to the Code, the Standards of Practice, and the
Official Interpretations are made at the NAR Midyear Meetings and the
REALTORS® Conference and Expo.
- The NAR Interpretations and Procedures Subcommittee frequently makes
recommendations to the Professional Standards Committee about
enhancements to professional standards procedures and to the Code of
Ethics.
- All proposed changes to the Code and to the policies and procedures by
which the Code is enforced must be approved by the Board of Directors.
Amendments to the 17 Articles must also be approved by the Delegate Body.
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4. The Code and the Law

The Code must be reasonably and consistently construed with the law

The Code imposes duties above and in addition to the duties imposed by law or
regulation
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The Code restates certain fundamental legal principles (contract, agency, fair
housing)
5. Pathways to Professionalism

Is a comprehensive list of service criteria for the industry and professional
courtesies for REALTORS® to enhance their professional conduct.

Three major sections
- Respect for the public
- Respect for property
- Respect for peers
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Exercise: Pathways to Professionalism
Instructions: Identify three areas in the “Pathways to Professionalism” document that
relate to your market.
Pathways to Professionalism
These professional courtesies are intended to be used by REALTORS® on a
voluntary basis, and cannot form the basis for a professional standards complaint.
Respect for the Public
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Follow the “Golden Rule” -- Do unto others as you would have them do unto you.
Respond promptly to inquiries and requests for information.
Schedule appointments and showings as far in advance as possible.
Call if you are delayed or must cancel an appointment or showing.
If a prospective buyer decides not to view an occupied home, promptly explain
the situation to the listing broker or the occupant.
Communicate with all parties in a timely fashion.
When entering a property, ensure that unexpected situations, such as pets, are
handled appropriately.
Leave your business card if not prohibited by local rules.
Never criticize property in the presence of the occupant.
Inform occupants that you are leaving after showings.
When showing an occupied home, always ring the doorbell or knock -- and
announce yourself loudly -- before entering. Knock and announce yourself loudly
before entering any closed room.
Present a professional appearance at all times; dress appropriately and drive a
clean car.
If occupants are home during showings, ask their permission before using the
telephone or bathroom.
Encourage the clients of other brokers to direct questions to their agent or
representative.
Communicate clearly; don’t use jargon or slang that may not be readily
understood.
Be aware of and respect cultural differences.
Show courtesy and respect to everyone.
Be aware of -- and meet -- all deadlines.
Promise only what you can deliver -- and keep your promises.
Identify your REALTOR® and your professional status in contacts with the
public.
Do not tell people what you think -- tell them what you know.
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Pathways to Professionalism
Respect for Property
Be responsible for everyone you allow to enter listed property.
Never allow buyers to enter listed property unaccompanied.
When showing property, keep all members of the group together.
Never allow unaccompanied access to property without permission.
Enter property only with permission even if you have a lockbox key or
combination.
6. When the occupant is absent, leave the property as you found it (lights, heating,
cooling, drapes, etc). If you think something is amiss (e.g. vandalism) contact
the listing broker immediately.
7. Be considerate of the seller’s property. Do not allow anyone to eat, drink,
smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave
the house as you found it unless instructed otherwise.
8. Use sidewalks; if weather is bad, take off shoes and boots inside property.
1.
2.
3.
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5.
Respect for Peers
1. Identify your REALTOR® and professional status in all contacts with other
2.
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REALTORS®.
Respond to other agents’ calls, faxes, and e-mails promptly and courteously.
Be aware that large electronic files with attachments or lengthy faxes may be a
burden on recipients.
Notify the listing broker if there appears to be inaccurate information on the
listing.
Share important information about a property, including the presence of pets,
security systems, and whether sellers will be present during the showing.
Show courtesy, trust, and respect to other real estate professionals.
Avoid the inappropriate use of endearments or other denigrating language.
Do not prospect at other REALTORS®’ open houses or similar events.
Return keys promptly.
Carefully replace keys in the lockbox after showings.
To be successful in the business, mutual respect is essential.
Real estate is a reputation business. What you do today may affect your
reputation -- and business -- for years to come.
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