BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
Code of Ethics and Good Risk Management
I have observed, after 30 years in the real estate business as a broker and attorney, that there is a direct correlation between the level of professionalism, customer service and integrity of agents on one hand, and the number of claims against agents on the other. Those agents who maintain professional standards, provide high levels of customer service and act with honesty and integrity experience far fewer claims and litigation.
At a time when our industry seems fraught with unprofessional conduct and unethical behavior, it is wise, at the start of a new year, to take a look at how each of us is acting professionally. One has only to look to the NAR Code of Ethics for guidelines for acting with integrity, honesty and professionalism. Here are eight examples of exemplary conduct for REALTORS®:
PREAMBLE
1. REALTORS® “are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.”
2. In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others.
3. REALTORS® “do not attempt to gain any unfair advantage over their competitors.”
4. In instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.
5. REALTORS® “can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, ‘Whatsoever ye would that others should do to you, do ye even so to them.’ ”
6. ARTICLE 1: When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly.
7. ARTICLE 12: REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations.
8. ARTICLE 15: REALTORS® shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices.
Remember, as the Preamble to the Code of Ethics states:
“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. No inducement of profit and no instruction from clients ever can justify departure from this ideal.”
So, I recommend that all REALTORS® make the following New Year Resolutions:
In the New Year, I as a REALTOR® resolve:
1. To strive to improve the standards of our industry with honor and integrity.
2. To share the fruits of my experience and education with others.
3. To not take unfair advantage over competitors.
4. To always offer opinions in an objective and professional manner, uninfluenced by
any personal motivation or potential advantage or gain.
5. To always remember and honor the Golden Rule.
6. To promote and protect the interest of my clients while treating all parties honestly.
7. To be honest and truthful in my communications.
8. To not make false or misleading statements about other real estate professionals.
DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2011 12/23/11