NAR Code of Ethics
Definition and meaning of NAR Code of Ethics in real estate.
The NAR Code of Ethics is a strict set of professional guidelines and standards of practice that members of the National Association of Realtors, commonly called Realtors, must follow. This code outlines duties to clients, the public, and other real estate professionals.
In more detail
First adopted in 1913, this code of conduct establishes a higher standard of ethical behavior than state licensing laws require. It is updated annually to address new industry practices and consumer protection issues. Realtors who violate the code can face disciplinary actions, including fines, required training, or suspension of their membership.
The code is structured around duties to clients, duties to the public, and duties to other Realtors, ensuring that transactions are conducted with honesty and integrity.
Key facts
| Category | Buying & Selling |
|---|---|
| Enforced by | Local Realtor associations |
| Applies to | Licensed agents who join the National Association of Realtors |
| Governing body | National Association of Realtors |
An agent representing a home seller receives multiple offers on the property. Under the code of ethics, the agent must present all offers to the seller as soon as possible, rather than holding back some offers to favor a preferred buyer or to secure a higher commission.
Frequently asked questions
What is the difference between a real estate agent and a Realtor?
A real estate agent is licensed by their state to assist with transactions. A Realtor is a licensed agent who is also a member of the National Association of Realtors and must adhere to its strict code of ethics.
How can a client file a complaint if a Realtor violates the code?
Clients or other agents can file a formal complaint with the local Realtor board or association where the agent holds membership. The association will investigate the claim and may hold a hearing to determine if a violation occurred.