What Does The Realtors® Code Of Ethics Really Mean?

When working with a professional, is it with a sceptical mind that you will find them honest and ethical in their dealings with you as a consumer? A Realtor® might help with one of your largest financial transactions. How do you decide if using a Realtor® makes sense for you and then how to select which one.

First of all, Realtors® must be licensed with the state in which they practice. In order to maintain the active status of that license, they are each subject to passing the state test of knowledge and a full background check. The continuing education requirements are enforced to keep the agent knowledgeable about any changes in the law or current practices regarding a real estate transaction. Handling a transaction without the aid of a professional Realtor® can leave you quite vulnerable to missing key legal ingredients or having an unbiased third party counsel.

We are often asked how a Realtors® can represent both a Seller and a Buyer in a transaction. The National Association of Realtors has strict guidelines for that exact occurance. The agent becomes a third party Transaction Broker for which there are 7 key things you have a right to expect in this representation. They include the following duties:

1. Dealing honestly and fairly.
2. Accounting for all funds.
3. Using skill, care, and diligence in the transaction.
4. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the Buyer.
5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directing the licensee otherwise in writing.
6. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the Seller will accept a price less than the asking or listing price, that the Buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to finacing terms other than those offered, or of any other information requested by a party to remain confidential.
7. Any additional duties that are entered into by this or by separate written agreement.

In this case of limited representation, the Realtor® is able to facilitate a real estate transaction by assisting both the Buyer and the Seller, but not to the detriment of one or the other party.

In addition, the National Association of Realtors® issues its annual Code of Ethics and Standards of Practice. This is available in a PDF form and you will be able to see how serious the standards truly are. What I like in the Preamble is "Under all is the land." What an amazing acknowledgement to help facilitate its highest and best use and change of ownership.
As in any profession, look for those professionals who have the highest standards and credibility... and who will represent your best interest in a real estate transaction. It would be our honor to show you how The PURTEE Team can help in the Tampa Bay area!