Professional Standards FAQs
Ethics and Arbitration Services
The single, most outstanding characteristic that sets REALTORS apart from other real estate practitioners is the willingness to accept and abide by the Code of Ethics of the National Association of REALTORS. The Code of Ethics, which was first adopted on July 29, 1913, is a living document, responsive in its content to changes in law and industry.
The Code has been revised several times through the years to reflect the current developments in professional real estate practice. Updated annually, in response to changes in the industry, each REALTOR needs to review the Code when these changes occur.The Code of Ethics is universally recognized by practitioners, lawyers and laymen alike as the measure of professionalism in real estate. When you abide by the Code, it ensures your fellow practitioners and the public of a high standard of business conduct.
The Code of Ethics is also an excellent Risk Management tool. Include a copy in your listing presentation packet, to educate clients on the “REALTOR difference”. The term REALTOR has come to represent competency, fairness, and high integrity. These qualities stem from voluntary adherence to an ideal of moral conduct in real estate business practices.But even with the best of intentions, planning and preparation, occasional disagreements arise between REALTORS and/or between REALTORS and their clients and customers. By virtue of its charter with the National Association of REALTORS, the South Metro Denver REALTOR Association has both a duty and an obligation to enforce the REALTOR Code of Ethics among members who hold REALTOR membership. Association members who hold REALTOR membership subscribe to the REALTOR Code of Ethics as a condition of membership, and agree to uphold the Code of Ethics in their business dealings with clients, customers and other REALTORS.
Through professional standards, ABOR provides its members and their clients and customers a vehicle to economically expedite ethics complaints and/or arbitration requests without going to court.If an “arbitrable” monetary dispute arises from a real estate transaction or if you believe a REALTOR may have acted in an unethical manner, seek a resolution through your local association of REALTORS. Ethics complaints that are brought before the association give those parties involved an opportunity to be educated about the Code. In addition, REALTORS are judged by their peers as opposed to other individuals who may be far less familiar with the practices and customs of the real estate industry.
Ethics
An ethics complaint charges that a REALTOR has violated an Article(s) of the Code of Ethics of the National Association of REALTORS. Ethics complaints are filed where the respondent holds membership. Complaints can be filed by any person, whether a member or not, having reason to believe that a member is in violation of any conduct subject to disciplinary action.
Arbitration
An arbitration request involves an “arbitrable” dispute over entitlement to a monetary transaction (e.g., a commission) or a monetary claim arising out of a contractual dispute (Standard of Practice 17-4 of the Code of Ethics). Arbitration can be filed by the REALTOR principal (employing or managing ‘broker”) or by a non-REALTOR member if they agree to be bound and abide by the award of a hearing panel. A non-principal cannot file an arbitration, although their name may be joined on the request and may attend and participate in the arbitration if they remain affiliated with the broker, maintain REALTOR membership, and have a monetary interest in the outcome.