Q: How does the Realtor code of ethics affect everyday real estate practices?
A: First, not all real estate agents or brokers are Realtors. There is a difference. Any agent is bound by certain legal obligations defined by state laws. The term “Realtor” is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors and subscribes to its strict code of ethics. A Realtor is held to an even higher standard of conduct than just the state law under the code of ethics.
If a Realtor represents you, whether you are buying or selling a home, you can count on that Realtor to be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.
For example, if a Realtor represents a buyer with a spotty credit history, he can’t be dishonest with sellers about this fact. At the same time, Realtors can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved his situation.
A Realtor must put your interests ahead of his or her own at all times.