What is the difference between a Realtor® & a real estate agent?
A Realtor® is a member of the National Association of Realtors® (NAR).
The Realtor® must subscribe and adhere to the Realtor® Code of Ethics.
All Realtors® are licensed to sell real estate and are agents as well.
HOWEVER, not all agents are Realtors® Confused yet? Don’t be.
The basics to remember are as follows.
A Realtor®:
1. Must subscribe and adhere to the Realtor® Code of Ethics (The Realtor® Code of Ethics is strictly enforced). Realtors® are accountable for their actions.
2. Is bound by the state real estate laws where they have their license and where they practice real estate.
3. Passes the licensing requirements for the state test & under goes additional training from NAR in order to become a Realtor®
4. Continue education to maintain their license in good standing in their licensed state
5. Maintains membership, in good standing, in the NAR.
The BIG mistake people make is using the terms Realtor® and real estate agent interchangeably. They are not the same.
The Realtor® Code of Ethics is not just simply a bunch of rules that agents swear to uphold and adhere to. It is much more. Conduct is strictly enforced and governed for the Realtor®. Although this is not a guarantee that all Realtors® are morally and ethically better than unaffiliated real estate agents. It is an attempt by the industry to regulate and present a high bar and standard to be met by those agents who do pledge to uphold the Realtor® Code of Ethics by becoming a Realtor®. Setting consequences for those agents who do not meet those standards.
The Realtor® promises to follow 17 Articles and various underlying Standards of Practice (remember simple real estate agents do not) listed here:
1. Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.
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 their 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 they are a lawyer.
14. Shall cooperate if charges are brought against them and present all evidence requested.
15. Agree not to 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 is celebrating its centennial year in 2008. The NAR has more than one million members. For more information on Realtors® and the NAR, visit Realtor.com.
Written & compiled by:
Licia R. Guenesso, Realtor®
Prudential Fox & Roach REALTORS®
Thank you for your trust!
