Realtor vs. Real Estate Agent

I am a REALTOR® . Many people don't know the full picture of what makes a REALTOR® different from just a licensed real estate agent (besides the capital letters...). I want to address just one very important aspect of that difference- Our Code of Ethics and Standards of Practice.

Texas REALTORs® and real estate agents both have to follow the Texas Real Estate Licensing Act (TRELA), but REALTORs® answer to a higher code as well. That's the National Association of Realtors® (NAR) Code of Ethics and Standards of Practice. The code of ethics covers much of what is in the Licensing Act, but it also gives Realtors specific ways to deal with the day-to-day challenges we face that may not be explicitly addressed. Conceivably, a REALTOR® could violate the Code of Ethics, but technically not be breaking the TRELA. We, as the REALTOR® community, enforce the code to increase a level of fairness and integrity in the industry.

Article One is key:
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.

The Code is divided into three sections:
Duties to Clients and Customers (Articles 1-9)
Duties to the Public (Articles 10-14)
Duties to REALTORS® (Article 15-17)

I know the Code of Ethics may not seem terribly exciting to most people, but I find it fascinating. I carry around a copy in my backpack and I frequently thumb through it when I find myself in a waitful situation.

I have included a link to a copy of the Code of Ethics which includes copies in Chinese, English, Korean, Spanish, Tagalog, and Vietnamese.

If you do feel that a REALTOR has violated this Code of Ethics, I encourage you to contact your local Board of REALTORS. The stronger the Code is enforced, the better things are for the REALTOR community and for consumers, as well.

To understand the spirit of the Code of Ethics without having to read the whole thing, consider reading the Preamble to the NAR Code of Ethics, which I have included below.

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.