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Code of Ethics of the
National Association of Realtors
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. Through the
Realtor, the land resource of the nation reaches its
highest use and private land ownership its widest
distribution. The Realtor is instrumental in molding the
form of his or her community and the living and working
conditions of its people. Such functions impose grave
social responsibilities, which Realtors can meet only by
diligent preparation, and considering it a civic duty to
dedicate themselves to the fulfillment of Realtors
obligations to society. The Realtor therefore must be
zealous to maintain, and continually strive to improve,
the professional standards of his or her calling:
By keeping informed as to developments and trends in
real estate,
By endeavoring to protect the public against fraud,
misrepresentation or unethical practice in
connection with real estate transactions,
By rendering services and opinions based only on the
Realtor's knowledge, training, qualifications
and experience in real estate,
By seeking no unfair advantage over, nor injuring
directly or indirectly, the reputation of; nor
publicly disparaging the business practice of other
Realtors, and
By being loyal to the Realtor's Real Estate
Board and Provincial/Territorial Association and
active in their work.
In the interpretation of his or her obligations, the
Realtor can take no safer guide than that which has been
embodied in the Golden Rule - "Do unto others as you
would have them do unto you".
No inducement of profit and no instructions from clients
or customers can ever justify departure from the ideals of
fair dealing and high integrity resulting from adherence
to a lofty standard of moral conduct in business
relations.
Accepting this standard as his or her own, each Realtor
pledges to observe the spirit of the Code in all dealings
and to conduct business in accordance with the Standards
of Business Practice as adopted by The Canadian Real
Estate Association.
Duties To Clients And Customers
ARTICLE 1
Realtors shall endeavor to be informed regarding the
essential facts which affect current market conditions in
order to be in a position to counsel their clients and/or
to assist customers in a responsible manner.
ARTICLE 2
A Realtor shall protect and promote the interests of his
or her client, This primary obligation does not relieve
the Realtor of the responsibility of dealing fairly with
all parties to the transaction.
ARTICLE 3
A Realtor shall fully disclose in writing to, and is
advised to seek written acknowledgement of disclosure
from, all parties to a transaction regarding the role and
the nature of service the Realtor will be providing to the
client versus the customer or other party to the
transaction The Realtor shall also disclose his or her
role to other Realtors involved in the transaction.
ARTICLE 4
A Realtor has an obligation to discover facts pertaining
to every property for which the Realtor accepts an agency
which a reasonably prudent Realtor would discover in order
to fulfil the obligation to avoid error, misrepresentation
or concealment of pertinent facts.
ARTICLE 5
Realtors should ensure written representation agreements
whenever possible in order to avoid misunderstandings with
their clients and customers.
ARTICLE 6
Realtors shall ensure that agreements regarding real
estate transactions are in writing in clear and
understandable language, expressing the specific terms,
conditions, obligations and commitments of the parties to
the agreement. A copy of each final agreement shall be
furnished to each party upon their signing or initialing,
and shall be dealt with in accordance with the
instructions of the parties involved.
ARTICLE 7
The Realtor shall, prior to the signing of any agreement,
fully inform the signing party regarding the type of
expenses for which he/she may be normally liable.
ARTICLE 8
A Realtor shall not accept compensation from more than one
party to a transaction without the written consent of his
or her client(s).
ARTICLE 9
Realtors shall disclose to a client or customer if there
is any financial benefit the Realtor or his/her firm may
receive as a result of recommending real estate products
or services to that party.
ARTICLE 10
A Realtor shall not accept any rebate or profit on
expenditures made for a client without the client's
consent or accept any rebate or profit on expenditures for
a customer without the customer's knowledge.
ARTICLE 11
The Realtor shall not discourage parties to a transaction
from seeking legal counsel.
ARTICLE 12
The Realtor shall not knowingly permit any property in his
or her charge to be used for unlawful purposes.
ARTICLE 13
A Realtor shall not present an offer or acquire an
interest in property either directly or indirectly for
himself or herself, any member of his or her immediate
family or any entity in which the Realtor has a financial
interest, without making the Realtor's position known
to the seller in writing. In selling/leasing property
owned by the Realtor, or in which the Realtor has an
interest, the interest shall be revealed to the
buyer/tenant in writing.
ARTICLE 14
In providing an opinion of value of real property a
Realtor shall not undertake to provide such an opinion if
it is outside the Realtor's field of experience to do
so, unless this fact is disclosed to the client or unless
assistance is obtained from another person who has
experience in this area. A Realtor shall not perform an
appraisal contrary to the terms and conditions of any
designation the Realtor holds through The Canadian Real
Estate Association. In all other circumstances the Realtor
shall not provide an opinion of value on property in which
the Realtor has a present or contemplated interest without
first disclosing this fact to the client. Fees charged for
providing an opinion of value shall not be based on the
amount of value reported.
ARTICLE 15
A Realtor shall present all written offers and
counter-offers as objectively and as quickly as possible.
ARTICLE 16
A Realtor shall not advertise a property if such
advertising has been restricted at the request of the
seller/landlord. In any advertisement, the advertised or
offered price of a property shall not be other than that
which was agreed upon with the seller/landlord. (Also
applies to Article 25.)
Duties to the Public
ARTICLE 17
A Realtor is obliged to render a skilled and conscientious
service, in conformity with standards of competence which
are reasonably expected in the specific real estate
disciplines in which the Realtor engages. When a Realtor
is unable to render such service, either alone or with the
aid of other Realtors, the Realtor should not accept the
assignment or otherwise provide assistance in connection
with the transaction.
ARTICLE 18
Realtors shall ensure a true presentation in all
advertising. Properties and services shall not be
advertised without identifying the firm, or where
applicable, the individual practitioner, in accordance
with provincial licensing legislation.
ARTICLE 19
The Realtor shall not deny professional services to any
person for reasons of race, creed, colour, sex, familial
status, age, or national origin. The Realtor shall not be
party to any plan or agreement to discriminate against a
person or persons on the basis of race, creed, colour,
sex, familial status, age or national origin.
ARTICLE 20
The Realtor shall observe the By-laws, Rules and
Regulations established by the Realtor'S Real Estate
Board and/or Association, in addition to the regulations,
terms and conditions associated with any designation that
the Realtor may hold through membership in The Canadian
Real Estate Association.
ARTICLE 21
The business of a Realtor shall be conducted m strict
accordance with all statutory and regulatory requirements
that apply to that business.
Duties to the Realtors
ARTICLE 22
The Realtor shall never publicly discredit a competitor.
If the Realtor's opinion is sought regarding a
specific transaction, it should be rendered with strict
professional integrity and courtesy.
ARTICLE 23
The agency or other contractual relationship of a
competitor shall be respected by all Realtors.
Negotiations concerning exclusively listed property or
with any party who is exclusively represented shall be
carried on with the client's agent and not with the
client directly, except with the consent of the
client's agent.
ARTICLE 24
A Realtor shall not seek information about a competitors
transaction to be used for the purpose of closing a
transaction himself or herself; or for the purpose of
interfering with any other contractual undertaking.
ARTICLE 25
Signs in respect of the sale, rent, lease, development or
exchange should not be placed on any property by other
than the listing broker unless authorized by the
seller/landlord. Realtors shall not interfere with another
real estate broker's sign.
ARTICLE 26
Should a Realtor be asked to cooperate in any way in
connection with a disciplinary investigation or proceeding
pertaining to alleged unethical practice, the Realtor
shall place all pertinent facts before the proper
Committee of the Real Estate Board or Association to which
the Realtor belongs.
ARTICLE 27
In the event of a dispute between Realtors associated with
different firms of the same local Board/Association
regarding the fee or commission earned or to be earned in
connection with a real estate transaction, the dispute
shall be submitted for arbitration in accordance with the
By-Laws, Rules and Regulations of their local
Board/Association.
ARTICLE 28
In the event of a dispute between Realtors associated with
different firms and belonging to different local
Boards/Associations regarding the fee or commission earned
or to be earned in connection with a real estate
transaction, the dispute shall be submitted to arbitration
in accordance with the By-Laws and Rules and Regulations
of the appropriate Provincial/Territorial Association.
Should the Realtors belong to different
Provincial/Territorial Associations, the dispute shall be
arbitrated in accordance with the By-Laws and Rules and
Regulations of The Canadian Real Estate Association.
ARTICLE 29
The business of a Realtor shall be conducted so as to
avoid controversies with other Realtors.
The Canadian Real Estate Association
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