commissioner’s rules - course creators...meets the quadrennial nar ethics requirement ... standard...

Course Creators® 520-360-0280 Commissioner’s Rules Applied to Ethical Practices©2018 www.CourseCreators.com

Commissioner’s Rules

Applied To Ethical

Practices Today

With Theresa Barnabei

www.CourseCreators.com

520-360-0280


Commissioners’ Rules Applied to

Ethical Practices Today Meets the Quadrennial NAR Ethics Requirement

Historical Building Blocks

National Association of Real Estate Exchanges Founded in 1908

Founded To Establish Ethical Standards And Measure Conduct

Code Of Ethics Adopted 1913

o Originally 23 Articles:

• Duties To Clients

• Duties To Other Brokers

Living Document


Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

The Preamble to the Code

Patriotic Duty

Diligent in Preparation (Article 4-Education)

Zealous to improve standards (Article 4-Education)

Competency (R4-28-1101h)

Fairness (R4-28-1101a)

High Integrity

Lofty Ideals

The Code Of Ethics

Duties to Clients and Customers : Articles 1-9

Duties to the Public: Articles 10-14

Duties to REALTORS®: Articles 15-17

http://www.realtor.org/governance/governing-documents/the-code-of-ethics




Getting The Code (Provided By: NAR) Instructions: Read each statement and select the Article of the Code of Ethics from the list below that the statement most closely describes. Write the correct Article number in the space next to each statement. No Articles are to be selected twice.

NOTE: The statements in this exercise do not fully represent the comprehensive ethical principles of each Article of the Code of Ethics. To gain a full understanding of the principles of the REALTORS® Code of Ethics, each Article must be read and understood in its entirety.

Commish


The Road to Success Has Two Separate Paths

Resources for Licensees

Navigating the ADRE Website

o Guides

Commissioners’ Advisories

Substantive Policy Statements

o State Statutes (ARS)

o Administrative Code

Referenced by Rule Number (R4)

NAR Tools and Links

o Link to the Code of Ethics

http://www.realtor.org/mempolweb.nsf/pages/code

o Link to the Pledge

http://www.realtor.org/realtororg.nsf/files/R_COE-

Pledge-of-Performance.pdf/$FILE/R_COE-Pledge-of-

Performance.pdf

The Road To

Success

• Commissioners’ Rules

• NAR Code of Ethics

http://www.realtor.org/mempolweb.nsf/pages/code

http://www.realtor.org/realtororg.nsf/files/R_COE-Pledge-of-Performance.pdf/$FILE/R_COE-Pledge-of-Performance.pdf




Scripts You Will Use

Why The Code of Ethics is Important to You!

How The Code Demonstrates Honesty & Trustworthiness

What To Do In Case of Dispute

Things Happen On the Road

The Dispute Resolution Process

The ADRE Grievance Process

Investigations Mandatory

Channeled Through AG’s Office

Multiple Penalties


The NAR Code Process

Grievance Committee

Reviews and Recommends Solutions

Refers to Mediation/Arbitration

The Role of Mediation/Arbitration

Voluntary Settlement Conference

Goal is Compromise & Resolution

The Role of Arbitration

Formal Hearing

Witnesses & Exhibits Are Used

Result is Binding

The Professional Standards Committee

Conducts Arbitration Hearings

Statewide or Within Associations

Case Studies

Obligations

SOP 1-11 of the NAR Code of Ethics Realtors® who are employed to maintain or manage a client’s property shall

exercise due diligence and make reasonable efforts to protect it against

reasonably foreseeable contingencies and losses.


R4-28-1101D Commissioner’s Standard A licensee shall not allow a controversy with another licensee to jeopardize,

delay, or interfere with the initiation, processing, or finalizing of a transaction on

behalf of a client. This prohibition does not obligate a licensee to agree to alter

the terms of any employment or compensation agreement or to relinquish the

right to maintain an action to resolve a controversy.

Preamble to the Code of Ethics 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.

Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

Accuracy in Advertising

R4-28-502(C) Commissioner’s Standard A salesperson or a broker shall ensure that all advertising contains accurate claims

and representations, and fully states factual material relating to the information

advertised. A salesperson or broker shall not misrepresent the facts or create

misleading impressions.

Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________


Identification of Employing Broker

SOP 12-5 of the NAR Code of Ethics REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®'s firm in a reasonable and readily apparent manner.

R4-28-502(E) Commissioner’s Standard A salesperson or broker shall ensure that all advertising identifies in a clear and

prominent manner the employing broker’s legal name or the dba name contained

on the employing broker certificate.

Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

Identification As Licensee and State Licensure

Article 12 of the NAR Code of Ethics REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.

Standard of Practice 12-9 of the NAR Code of Ethics REALTOR® firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner.

Websites of REALTORS® and non-member licensees affiliated with a REALTOR® firm shall disclose the firm’s name and that REALTOR®’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner.


Standard of Practice 12-13 of the NAR Code of Ethics The obligation to present a true picture in advertising, marketing, and representations allows REALTORS® to use and display only professional designations, certifications and other credentials to which they are legitimately entitled.

Standard of Practice 12-8 of the NAR Code of Ethics The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on REALTORS®’ websites. REALTORS® shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a REALTOR®’s website is no longer current or accurate, REALTORS® shall promptly take corrective action.

R4-28-502(A) Commissioner’s Standard A salesperson or broker acting as an agent shall not advertise in a manner that

implies that no salesperson or broker is taking part in the offer, sale, lease or

exchange.

Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

Accurate & Factual Information

Standard of Practice 12-10 of the NAR Code of Ethics REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes the URLs and domain names they use, and prohibits REALTORS® from: (1) engaging in deceptive or unauthorized framing of real estate brokerage websites; (2) manipulating (e.g., presenting content developed by others) listing content in any way that produces a deceptive or misleading result; or (3) deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, or to otherwise mislead consumers.


Standard of Practice 12-12 of the NAR Code of Ethics REALTORS® shall not: (1) use URLs or domain names that present less than a true picture, or (2) register URLs or domain names which, if used, would present less than a true picture.

Article 12 of the NAR Code of Ethics REALTORS® Shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

Obligations of Confidentiality

Standard of Practice 1-9 of the NAR Code of Ethics The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. REALTORS® shall not knowingly, during or following the termination of professional relationships with their clients:

(1) Reveal confidential information of clients; or (2) Use confidential information of clients to the disadvantage of clients; or (3) Use confidential information of clients

SOP 1-16 REALTORS® shall not access or use, or permit or enable others to access or use, listed or managed property on terms or conditions other than those authorized by the owner or seller.


R4-28-1101(A) Commissioner’s Standard A licensee owes a fiduciary duty to the client and shall protect and promote the

client’s interests. The licensee shall also deal fairly with all other parties to a

transaction.

Notes: _____________________________________________________________

___________________________________________________________________

___________________________________________________________________

Comments About Competitors

Standard of Practice 15-2 of the NAR Code of Ethics The obligation to refrain from making false or misleading statements about competitors, competitors’ businesses and competitors’ business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means.

Sherman Anti-Trust Act • Limits unfair competition

• Restricts false or misleading statements about competitors

Notes:

_____________________________________________________________

___________________________________________________________________

___________________________________________________________________


Rules of the Road For Traveling Safe

1. 2. 3. 4. 5. 6. 7.


Arizona Law

R4 28-502C

R4 28-1101K

ARS32-2108

ARS32-2151

R4 28-1101F

ARS32-

2151.02c

R4 28-1001D

R4 28-1101E

R4 28-1101A

ARS32-2108

R4 28-301

R4 28-1101E

R4 28-1101H

ARS44-101

R4 28-1101B

R4 28-1101G

R4 28-502C


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Commissioner’s Rules Applied To Ethical Practices Today

Instructor: Theresa Barnabei, Course Creators University

Date: ______________________________

commissioner’s rules - course creators...meets the quadrennial nar ethics requirement ... standard...

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