Code of Ethics: Best Real Estate Pros “Know The Code”

Look, I know the topic of ethics can seem a bit dry and, well, unsexy — but, believe me, when you have an advisor helping you with the selling or buying of your home — be it a $80,000 studio condo, or an $18,000,000 lifestyle property on the beach — you want that advisor to know professional ethics and practices. 

Of course, you want a potent negotiator — I understand that — but you also want an ethical Associate whose knowledge and professionalism will protect you from unnecessary problems down the road.

Real estate pros who don’t know their ethics, can create problems for themselves and their clients — be it big problems (legal hassles involving attorneys and courtrooms) or small problems (irritating, preventable hiccups in escrow).

Those real estate pros who choose to be members of the NAR (National Association of Realtors) agree to abide by, and be accountable to, a strict Code of Ethics.  This Code is built about the foundation of The Golden Rule.

“The term Realtor® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations,” states the Preamble.  “No inducement of profit and no instruction from clients ever can justify departure from this ideal.”

The Code of Ethics breaks down our duties as Realtors into three categories, including:

• our Duties to Clients and Customers
• our Duties to the Public
• our Duties to other Realtors

As Chairman of the Grievance Committee at the Beverly Hills Greater Los Angeles Association of Realtors, I have the opportunity to see firsthand the kinds of violations of the Code of Ethics of which Realtors are accused.

The Grievance Committee is then charged with determining whether (if the facts as stated in the complaint are true on their face) the actions on the part of the accused Realtor would constitute a violation of the Realtor Code of Ethics. If so, the committee forwards the complaint to be heard by a well-trained hearing panel of other Realtors, giving the complainant his or her “day-in-court.”

What’s seems clear to me in some complaints is there is a lack of knowledge on the part of some Realtors of the intricacies and nuances which may not be noticed on the surface of the Code of Ethics itself. A careful study of the Narrative, Standards of Practice and Case Interpretations of the code helps to illuminate the nuances that are just as much a part of the Code of Ethics as the code itself.

We at Partners Trust make a commitment to the Golden Rule, accountability, and to operating at the highest level of integrity with our signature on the company Trust Agreement, a requirement of our partnership with any associate wishing to join our talented team of real estate professionals.

As part of our commitment to operate at the highest levels, we also we take our obligation to the Code of Ethics very seriously. In fact, at each of our weekly in-office powwows (see video), we present one concept from the code and explore it — in as much detail as necessary for there to be clarity within our family of associates:

What am I missing? Let me know your thoughts on this matter in the comments section below!

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David Findley grew up on a farm where, every morning before sunrise, he would share a bowl of Neopolitan ice cream with his grandfather. Today, David loves high-technology and gadgets, and he wonders what his grandfather would say if he could hold an iPad.

David is a Founding Partner of Partners Trust; he specializes in Los Angeles Estate and Lifestyle Properties; you can connect with David on Facebook.