Hiring a real estate agent takes a lot of trust. Your home is likely your largest financial asset. Plus, you’ll share information about yourself, your home, finances, and confidential details that could affect your negotiating position. This is why Realtors — members of the National Association of Realtors — are required to follow a Code of Ethics designed to protect consumers and promote fair dealing. While the Code won’t guarantee a perfect transaction, it does establish standards for honesty, transparency, confidentiality, and professional conduct that sellers should expect from their agent. In this guide, we’ll explain what the Realtor Code of Ethics is, how it differs from state licensing rules, and the ethical obligations that matter most to home sellers.
The Realtor Code of Ethics is a set of professional standards established by the National Association of Realtors (NAR). First adopted in 1913 and updated regularly, the Code outlines how Realtors should conduct themselves when working with clients, other real estate professionals, and the public. Today, the Code consists of 17 Articles supported by detailed Standards of Practice. While many of the rules address professional conduct behind the scenes, the overarching goal is straightforward: protect consumers and encourage ethical behavior throughout the real estate transaction. As retired NAR CEO Bob Goldberg once said: “Consumers can feel confident that the Realtor they choose to work with has taken the voluntary step of agreeing to abide by a code of ethics developed with public protection and trust in mind.” In many situations, the Code requires Realtors to meet standards that go beyond state licensing requirements. Many consumers use the terms “Realtor” and “real estate agent” interchangeably, but they’re not exactly the same thing. A real estate agent is someone who holds a real estate license issued by their state. A Realtor is a licensed real estate professional who is also a member of the National Association of Realtors. In other words, every “Realtor” is a licensed real estate agent, but not every real estate agent is a Realtor. Because Realtor members agree to follow the Code of Ethics, they can be subject to additional professional standards and disciplinary procedures beyond those required for state licensure. As a home seller, the distinction matters because the Code establishes expectations around how Realtors should represent you, handle your confidential information, disclose conflicts of interest, and market your property honestly.What is the Realtor Code of Ethics?
Realtor vs. real estate agent: What’s the difference?
