Real Estate Agents and REALTORS
The 17 Differences Between REALTORS and Real Estate Agents
Updated December 10, 2016
People use the terms REALTOR® and real estate
agent interchangeably, but that is incorrect. Not every real estate agent is a
REALTOR®. There are differences between REALTORS® and real estate
agents. They are not the same. Although both are licensed to sell
real estate, the main difference between
a real estate agent and a REALTOR® is a REALTOR® is a member of the National
Association of REALTORS®.
REALTOR® must subscribe to the REALTOR® Code of Ethics. There are 17 Articles in the
Code of Ethics. To many consumers, this matters. If you are wondering why the
Code of Ethics matter to a consumer, read on.
The Code of Ethics is strictly enforced by
local real estate boards. The 17 Articles of the Code of Ethics also contains
various underlying Standards of Practice. It's not just a bunch of rules that
agents swear to uphold and adhere to because their broker made them join the
Board. The Standards are much more restrictive and confining to conduct than
those state guidelines governing agents who simply hold a real estate license.
While there is no evidence nor guarantee that
all REALTORS® are morally or ethically better than unaffiliated real estate
agents, it is an attempt by the industry to regulate and, as such, deserves
recognition. Keeping mind, of course, that even the non-NAR member "real
estate agent" is held to the same legal standard as a practical matter.
Each of the 17 Articles carries weight to a
Realtor in her every-day business practice, but one article typically stands
above the rest. It is the basis for the way a Realtor operates. Fortunately, it
is the first Article, which sets the tone. Nowhere does it state the Realtor
must be fair to all parties, such as a listing agent dealing
with a buyer's agent, but a Realtor must be honest.
Above all, however, the Realtor must pledge to
put the interests of her clients above her own.
Here are 17 things
that a REALTOR® promises to do, which non-affiliates do not:
#1) Pledge to put the interests of buyers and
sellers ahead of their own and to treat all parties honestly.
#2) Shall refrain from exaggerating,
misrepresenting, or concealing material facts;
and is obligated to investigate and disclose when situations reasonably warrant.
#3) Shall cooperate with other brokers / agents when
it is in the best interests of the client to do so.
#4) Have a duty to disclose if they represent
family members who own or are about to buy real estate, or if they themselves
are a principal in a real estate transaction, that they are licensed to sell
real estate.
#5) Shall not provide professional services in
a transaction where the agent has a present or contemplated interest without
disclosing that interest.
#6) Shall not collect any commissions without
the seller's knowledge nor accept fees from a third-party without the seller's
express consent.
#7) Shall refuse fees from more than one party
without all parties' informed consent.
#8) Shall not co-mingle client funds with the
agent's own.
#9) Shall attempt to ensure that all written
documents are easy to understand and will give everybody a copy of what they
sign.
#10) Shall not discriminate in any fashion for
any reason on the basis of race, color, religion, sex, handicap, familial
status, or national origin.
#11) Expects agents to be competent, to
conform to standards of practice and to refuse to provide services for which
they are unqualified.
#12) Must engage in truth in advertising.
#13) Shall not practice law unless the agent
is a lawyer.
#14) Shall cooperate if charges are brought
against them and present all evidence requested.
#15) Agree to not bad mouth competition and
agree not to file unfounded ethics complaints.
#16) Shall not solicit another REALTOR'S
client nor interfere in a
contractual relationship.
#17) Shall submit to arbitration to settle
matters and not seek legal remedies in the judicial system.
The National Association of REALTORS® was
founded in 1908 and its members number more than one million.
Full disclosure: Elizabeth Weintraub is a
REALTOR®.
At the time of writing, Elizabeth Weintraub,
CalBRE #00697006, is a Broker-Associate at Lyon Real Estate in Sacramento,
California.
source: https://www.thebalance.com/real-estate-agents-and-realtors-1798898
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