What Is the REALTOR Code of Ethics and Why Is It Important to Consumers?

What Is the REALTOR Code of Ethics and Why Is It Important to Consumers?

When buying or selling a home, choosing the right real estate professional is critical. Among the many options, REALTORS® stand out because they adhere to a specific set of ethical guidelines: the REALTOR® Code of Ethics. But what exactly is this Code of Ethics, and how does it benefit consumers? Let’s break it down.

What Is the REALTOR® Code of Ethics?

The REALTOR® Code of Ethics is a document established by the National Association of REALTORS® (NAR) in 1913. It serves as a comprehensive guide that governs the professional conduct of REALTORS®. Updated annually to reflect changes in the industry and society, the Code sets forth obligations that REALTORS® owe to their clients, the public, and other real estate professionals. Bill Forrest and his Team of REALTORS have completed the semi-annual recertification with the code for changes coming for 2025.

The Full Code of Ethics is a large document that can be seen here:

2025 REALTOR Code of Ethics

The Code of Ethics is built on three main pillars:

1. Duties to Clients and Customers

   • REALTORS® pledge to act in their clients’ best interests, maintain confidentiality, and provide honest and accurate information.

2. Duties to the Public

   • This includes avoiding misrepresentation, upholding fair housing laws, and treating all parties involved in a transaction with respect.

3. Duties to Other REALTORS®

   • REALTORS® are expected to cooperate with competitors in a fair and ethical manner, fostering a professional and respectful industry.

Violations of the Code can result in disciplinary actions, ranging from mandatory education to fines or even suspension of membership in the NAR.

Why Is the Code of Ethics Important to Consumers?

The REALTOR® Code of Ethics isn’t just a set of rules for REALTORS®; it’s a consumer safeguard. Here are some key reasons why it matters:

1. Trust and Transparency

   • REALTORS® are bound to provide honest and transparent information, which helps consumers make informed decisions during one of the most significant transactions of their lives.

2. Commitment to Fair Practices

   • REALTORS® are committed to upholding fair housing practices, ensuring that every consumer has equal access to housing opportunities regardless of race, color, religion, sex, disability, familial status, or national origin.

3. Conflict Resolution

   • The Code provides a formal process for resolving disputes between consumers and REALTORS®, offering an additional layer of protection and accountability.

4. Professional Expertise

   • REALTORS® are required to stay informed about market trends, laws, and best practices, ensuring consumers receive knowledgeable and competent service.

Real-Life Impact: How the Code Helps

Imagine you’re buying your first home. You find a REALTOR® who not only listens to your needs but also educates you on the process, discloses any issues with the property, and negotiates tirelessly on your behalf. This professionalism is a direct result of their adherence to the REALTOR® Code of Ethics.

Alternatively, if you’re selling your home, a REALTOR® will ensure your property is marketed ethically and that all offers are presented transparently. This commitment minimizes stress and maximizes your chances of a successful sale.

Conclusion

The REALTOR® Code of Ethics is more than a set of guidelines—it’s a promise to consumers. By choosing a REALTOR®, you’re not just hiring a real estate professional; you’re gaining a trusted advisor who is committed to integrity, fairness, and excellence. Whether you’re buying your dream home or selling your current one, working with a REALTOR® ensures your interests are protected every step of the way.