“Ethics” doesn’t make you Moral
Every year there seems to be a lot of confusion about Ethics requirements and more than a few difficulties in tracking the education required by the National Association of REALTORS®. We know that you’re an Ethical Practitioner, but the education requirement is there, non-the-less. It’s important to first know that the Code of Ethics is almost a misleading title. It’s better thought of as Standards of Practice (which is what it was previously referred to). No instructor in the world, can make you “ethical” or moral. However, these Guiding Standards or Ethics is what sets apart a Real Estate Licensee from a REALTOR®. The point of this article is to address the educational requirements you promised to uphold, when you were sworn in, as a REALTOR®.
Why So Much Emphasis?
It’s important for REALTORS® to understand the minimal expectations that are given to maintain your membership in the National Association of REALTORS®. This requirement is simply to pay dues in a timely manner to ensure that we can provide services and to uphold the lofty ideas of the members of the Association. As a reminder here is the preamble to the REALTOR® Code of Ethics:
Preamble
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, 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.
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. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. REALTORS® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS®. (Amended 1/00)
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. 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.
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.
In the interpretation of this obligation, 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.”
Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below. (Amended 1/07)
This Code changes almost every year and it’s the standard to which all REALTORS® are held. Understanding that you are required to abide to this level of practice, should make it clear why individuals are required to train on it often. In 2006 there was an interesting change to the code that affects how we answer questions such as “Do you have other pending offers and what are the details?”. The fact that a Listing Agent can reveal the details of other pending offers, with the Seller’s permission; seems to be an enigma to many REALTORS® even today – 3 years and 7 months after the change. Obviously there is a need for routine training on this ever evolving document.
Quadrennial, Bi-Annual, DPOR and Renewals
The National Association of REALTORS® requires REALTORS® to take the Code of Ethics Training every four years. Several years ago, the Fredericksburg Association’s Board of Directors made the change to requiring the training every two years, to coincide with the Virginia Real Estate Board’s two year license renewal cycle. The NAR Code of Ethics Training is free online, however it does not carry Continuing Education or Post Licensing education. Completion of this program simply satisfies your membership requirement and not license renewal.
We also commonly get questions about why we do not consider all CE/PL “Ethics” classes as a satisfaction of the Code of Ethics requirement. It’s actually very simple. Many of the real estate schools, particularly those that are settlement companies or online schools do not cover the Code of Ethics and do not have instructors who have taken the required annual training to teach this topic. The courses usually deal with “business ethics” and not the REALTOR® Code of Ethics.
None of these options (online schools, NAR, non-REALTOR® schools, etc…) report your completion to the FAAR. That responsibility falls on you, the agent. There is no way for your Association to know where you took training and if that training covered the Code of Ethics sufficiently or with competent instructors. Curriculum and instructors that are not already approved by the Association are reviewed on a case-by-case basis.
Path of Least Resistance
Often staff is asked what the easiest path would be to fulfill their membership requirements. In the case of Ethics, it’s simply to take a course that is already approved for both relicense education credits and the NAR Code of Ethics, taught by a certified instructor. All of the Real Estate Career Academy / FAAR’s classes are approved for CE/PL and taught by certified instructors. These classes are offered almost every month. For all other schools, it’s best to call the Association in advanced of paying for a course that may not meet your needs. Many of the free classes that are offered, do not meet the requirements. As always, if you have any questions, FAAR staff is available to answer any questions. You can e-mail us at education@faarmembers.com or call 540.373.7711.
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