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The REALTOR® Code

Effective May, 2010

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INDEX

Preamble ............................................................................................... 4REALTOR® Code of Ethics ........................................................................ 5Article 1: Informed of Essential Facts ......................................................... 6Article 2: Disclosure of Role - Agency ........................................................ 6Article 3: Primary Duty to Client ............................................................... 7Article 4: Discovery of Facts ..................................................................... 7Article 5: Written Service Agreements ....................................................... 8Article 6: Written Transaction Agreements ................................................. 8Article 7: Expenses Related to the Transaction ............................................ 9Article 8: Disclosure of Benefits to Clients .................................................. 9Article 9: Disclosure of Benefits to Customers ............................................. 9Article 10: Outside Professional Advice ................................................... 10Article 11: Personal Interest in Property ................................................... 10Article 12: Skilled and Conscientious Service ........................................... 10Article 13: Advertising - Content/Accuracy .............................................. 11Article 14: Advertising Listings of Other REALTORS® ................................. 11Article 15: Advertising Claims ................................................................ 12Article 16: Discrimination ...................................................................... 12Article 17: Compliance with Board/Association Bylaws ............................ 13Article 18: Compliance with Statutory Requirements ................................. 13Article 19: Discrediting another Registrant ............................................... 13Article 20: Respecting Contractual Relationships ....................................... 14Article 21: Principal (Broker) Responsibility .............................................. 14Article 22: Cooperation with Board/Association ...................................... 15Article 23: Arbitration ........................................................................... 15Article 24: Inter-Board and Inter-provincial Arbitration ............................... 16Article 25: Avoid Controversies .............................................................. 16Article 26: CREA Trademarks ................................................................. 17Article 27: Intellectual Property Rights of Boards/Associations .................... 17Article 28: REALTOR® Acting as Principal ................................................ 17Definitions............................................................................................ 18

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Under all is the land. Upon its wiseutilization and widely allocatedownership depend the survival andgrowth of free institutions and of ourcivilization. Through the REALTOR®,the land resource of the nationreaches its highest use and privateland ownership its widest distribution.The REALTOR® is instrumental inmoulding the form of his or hercommunity and the living andworking conditions of its people.

Such functions impose grave socialresponsibilities which REALTORS® canmeet only by diligent preparation,and considering it a civic duty todedicate themselves to the fulfillmentof a REALTOR®’s obligations tosociety.

The REALTOR® Code of Ethics of TheCanadian Real Estate Association(CREA) is universally recognized byreal estate professionals andconsumers alike as the measure ofprofessionalism in real estate. TheREALTOR® Code is intended to definethe high standard of performance thepublic has a right to expect fromthose licensed to display theREALTOR® trademark.

In the same manner that the realestate marketplace is a dynamic,demanding environment, so theREALTOR® Code is, has been, andwill continue to be a demandingdocument; a plan for professionalismin real estate, capable of includingand accommodating every change,challenge and controversy whicharises.

Since 1913, when the first Code ofEthics was approved by the NationalAssociation of Real Estate Boards, ithas served as the ten commandmentsof the real estate community, bindingREALTORS® together in a commoncontinuing quest for professionalismthrough ethical obligations based onhonesty, integrity, fairness,accountability and professionallycompetent service.

The REALTOR® Code has beenamended many times over the yearsto reflect the changing needs of thepublic and the values of society. Mostrecently, the REALTOR® Code wasrevised in 2005 to accommodate newtechnologies and an evolvingmarketplace and to focus on theREALTOR® trademark as an assuranceof a high level of brokerage serviceand protection.

Any charge filed shall read as aviolation of the REALTOR® Code and/or one or more of the Articles of theStandards of Business Practice. AnInterpretation may only be cited insupport of the charge or the defence.Penalties for violation of theREALTOR® Code shall be establishedby the local board or other bodyauthorized to conduct disciplineproceedings.

PREAMBLE

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THE REALTOR® CODE OF ETHICS

The exclusive designation for a member of The Canadian RealEstate Association is the trademark REALTOR®. It symbolizes acommitment to competence, service and professional conduct.

In the quest for these high standards, REALTORS® in Canada havebeen bound together by a Code of Ethics since 1959.

As REALTORS®, we accept a personal obligation to the public andto our profession. The Code of Ethics of The Canadian Real Estate

Association embodies these obligations.As REALTORS®, we are committed to:

• Professional competent service

• Absolute honesty and integrity in business dealings

• Co-operation with and fairness to all

• Personal accountability through compliancewith CREA’s Standards of Business Practice.

To meet their obligations, REALTORS® pledge to observe the spiritof the Code in all of their activities and conduct their business in

accordance with the Standards of Business Practice and the GoldenRule — Do unto others as you would have them do unto you.

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1. Informed of Essential Facts

A REALTOR® shall be informedregarding the essential factswhich affect current marketconditions.

STANDARDS OF BUSINESS PRACTICE

1.1 A REALTOR® shall be aware of current legislationand, wherever reasonably possible, be aware of pend-ing legislation (including zoning, government pro-grams, etc.) which could affect trading conditions inthe marketplace. (Also applies to Article 4.)1.2 A REALTOR® should attend educational programsand courses which will assist the REALTOR® in remain-ing up-to-date and aware of matters that could affectany aspect of a real estate transaction.1.3 A REALTOR® shall be aware of appropriate fi-nancing procedures, mortgaging requirements, etc.in order to properly discuss financial obligations onany transaction.1.4 A REALTOR® shall be familiar with the contents ofthe most current forms commonly used in real estatetransactions.

2. Disclosure of Role - Agency

A REALTOR® shall fully disclose inwriting to, and is advised to seekwritten acknowledgement from,his or her Clients and thoseCustomers who are notrepresented by other Registrantsregarding the role and nature ofthe service the REALTOR® will beproviding. This disclosure shall bemade at the earliest possibleopportunity and in any eventprior to the REALTOR® providingprofessional services which gobeyond providing information asa result of incidental contact by aconsumer.

Article Interpretation

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3. Primary Duty to Client

A REALTOR® shall protect andpromote the interests of his or herClient. This primary obligationdoes not relieve the REALTOR® ofthe responsibility of dealing fairlywith all parties to the transaction.

4.1 This Article applies equally to REALTORS® work-ing with Buyers or Sellers.4.2 This Article is not intended to increase the disclo-sure obligations of REALTORS® beyond those requiredby common or civil law or any other statutory or regu-latory requirements.4.3 The REALTOR® shall not be party to any agree-ment in any way to conceal any facts pertaining to aproperty.4.4 Interpretations 1.1 & 3.2 also apply toArticle 4.

4. Discovery of Facts

A REALTOR® has an obligation todiscover facts pertaining to aproperty which a prudentREALTOR® would discover inorder to avoid error ormisrepresentation.

3.1 A REALTOR® shall fully disclose to his or her Cli-ent at the earliest opportunity any information that re-lates to the transaction.3.2 A REALTOR® shall not intentionally mislead any-one as to any matters pertaining to a property.3.3 A REALTOR® shall not, during or following therelationship with his/her Client, reveal ConfidentialInformation of the Client.3.4 A REALTOR® shall not use any information of theClient to the Client’s disadvantage.3.5 In a competing offer situation, a listing REALTOR®

acting as a dual agent shall not use the informationcontained in another offer to put either client at a com-petitive advantage.3.6 A REALTOR® shall, at all times, be able to rendera proper accounting to the REALTOR®’s Client withrespect to monies and other property of the Clientwhich have been entrusted to the care of the REALTOR®.3.7 A REALTOR® shall provide competent assistancewhen dealing with lawyers, mortgage lenders andother third parties needed to ensure the successful com-pletion of any contract entered into between a Sellerand a Buyer.3.8 An individual REALTOR® representing more thanone Buyer on the same property shall disclose this factto each Buyer and shall not use the information con-tained in another offer to put either client at a competi-tive advantage.3.9 "Dealing fairly" means acting honestly and pro-fessionally. The obligation to deal fairly does not inany way reduce a REALTOR®'s obligation to fulfill hisor her fiduciary duties to a Client and follow the Cli-ent's lawful instructions.

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5. Written Service Agreements

A REALTOR® shall ensure that allService Agreements withconsumers with the exception ofService Agreements with Buyersare in writing in clear andunderstandable language,expressing the specific terms,conditions, obligations andcommitments of the partiesto the agreement.

5.1 Written agreements should be signed at the ear-liest possible opportunity and in any event prior toany offer to Purchase being presented or submitted.5.2 Before entering into a Dual Agency, a REALTOR®

shall have the parties’ consent in writing to this form ofrepresentation by executing a Dual Agency agree-ment clearly setting out the duties owed by theREALTOR® to each Client.5.3 Contracts entered into electronically shall be con-sidered to be in “in writing” for the purpose of thisArticle, provided such contracts comply with the re-quirements of applicable legislation.5.4 A REALTOR® shall, prior to signing, provide thenecessary explanations to enable a Client to under-stand the terms and conditions of a contract.5.5 A REALTOR® shall ensure that documents pertain-ing to the Listing of real estate or to a Buyer agencyrelationship are kept current through the use of writtenextensions or amendments.5.6 A REALTOR®, on entering into a Listing or otherservice contract with a Seller, shall discuss and dis-close to the Seller the amount of Compensation of-fered to co-operating brokers.5.7 REALTORS® should make reasonable efforts toensure that Service Agreements with Buyers are signed,and are required to do so in those jurisdictions thatmandate written agreements.

6.1 Where the distribution of contracts is regulatedby the By-Laws and/or Rules and Regulations of theBoard or by provincial regulations, such distributionshall be in accordance with the requirements of thoseBy-Laws and/or Rules and Regulations.6.2 REALTORS® shall ensure that documents pertain-ing to the Purchase or Sale of real estate are keptcurrent through the use of written extensions or amend-ments.6.3 Interpretations 1.4 & 5.3 also apply toArticle 6.

STANDARDS OF BUSINESS PRACTICEArticle Interpretation

6. Written Transaction Agreements

REALTORS® shall ensure thatagreements regarding real estatetransactions are in writing in clearand understandable language,expressing the specific terms,conditions, obligations andcommitments of the parties to theagreement. A copy of each finalagreement shall be furnished toeach party upon their signing orinitialing, and shall be dealt with inaccordance with the instructions ofthe parties involved.

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7. Expenses Related to the Transaction

A REALTOR® shall, prior to thesigning of any agreement, fullyinform the signing partyregarding the type of expensesdirectly related to the real estatetransaction for which that partymay normally be liable.

8. Disclosure of Benefits to Clients

REALTORS® shall:

(a) obtain the consent of theirClients prior to: (i) acceptingCompensation from more thanone party to a transaction, or (ii)accepting any rebate or profit onexpenditures made for a Client.

(b) disclose to their Clients anyfinancial or other benefit theREALTOR® or his/her firm mayreceive as a result ofrecommending real estateproducts or services to that party.

7.1 In explaining fees for services, the REALTOR® shallnot state or suggest that the type or level of fees isbased on direction from a real estate Board, Associa-tion, Institute, Society or Council to which the REALTOR®

belongs.7.2 A REALTOR® shall be fully conversant with theroutine type of expenses that a Seller and/or Buyermay incur.

8.1 Without limiting the generality of Article 8, refer-ence to real estate products or services includes lend-ing institutions, title insurance companies, lawyers, ap-praisers and moving companies, and other real es-tate brokerage firms from which the REALTOR® mayreceive a referral fee.

9.1 The REALTOR® should not recommend or suggestto a party the use of services or products of any otherorganization or business in which the REALTOR® hasa direct or indirect interest without disclosing such in-terest in writing at the time of the recommendation orsuggestion.9.2 Interpretation 8.1 also applies toArticle 9.


9. Disclosure of Benefits to CustomersREALTORS® shall disclose toCustomers:

a) any financial or other benefitthe REALTOR® or his/her firmmay receive as a result ofrecommending real estateproducts or services to that party.

b) any rebate or profit acceptedby the REALTOR® or his/her firmfor expenditures made for thatparty.

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10. Outside Professional Advice

The REALTOR® shall encourageparties to a transaction to seekthe advice of outsideprofessionals where such adviceis beyond the expertise of theREALTOR®.

10.1Outside professional advice would include, with-out limitation, lawyers, appraisers, home inspectors,surveyors, accountants, insurance agents or brokers,mortgage consultants, land use planners and environ-mental consultants.

11.1 Disclosure of the REALTOR®'s position shall in-clude the fact that the REALTOR® is a licensed realestate practitioner, the nature of the interest held (whenselling), the relationship of the REALTOR® to the Imme-diate Family member, and/or the fact that theREALTOR® has a financial interest in the buying orselling entity.11.2 This disclosure must be made regardless of thelocation of the property in question and regardless ofwhether the REALTOR® in question is represented byanother registrant.11.3 Where disclosure regarding the Purchase or Saleis also required pursuant to provincial regulation, suchadditional disclosure shall be made in accordancewith that regulation.11.4 Disclosure pursuant to Article 11 shall be madeat the earliest possible opportunity, and in any eventprior to the presentation of an offer to Purchase.11.5 When in doubt, disclose.

12.1 Where a REALTOR® lacks sufficient expertise,he or she may only provide the service with the assist-ance of another professional who is properly quali-fied.12.2 A REALTOR® shall not provide an Opinion ofValue if it is outside the REALTOR®’s field of expertiseto do so unless this fact is disclosed in writing to theClient or assistance is obtained from another Personwho has experience in this area.12.3 A REALTOR® shall not perform an Appraisal orOpinion of Value on a property in which the REALTOR®

has a present or contemplated interest without first dis-closing this fact to the Client.12.4 Fees charged for Appraisals or Opinions of Valueshall not be based on the amount of value reported.12.5 A REALTOR® shall not perform anAppraisal unless he or she has the appropriate training.


11. Personal Interest in Property

A REALTOR® shall not buy or sell,or attempt to buy or sell aninterest in property either directlyor indirectly for himself or herself,any member of his or herImmediate Family, or any entity inwhich the REALTOR® has afinancial interest, without makingthe REALTOR®'s position known tothe buyer or seller in writing.

12. Skilled and Conscientious Service

A REALTOR® shall render a skilledand conscientious service, inconformity with standards ofcompetence which arereasonably expected in thespecific real estate disciplines inwhich the REALTOR® engages.When a REALTOR® is unable torender such service, either aloneor with the aid of otherprofessionals, the REALTOR® shallnot accept the assignment orotherwise provide assistance inconnection with the transaction.

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13. Advertising - Content/Accuracy

All Advertising and promotion ofproperties shall accurately reflectproperty and other details andprominently display the name ofthe brokerage and any additionalinformation required byprovincial regulation.

13.1 The Internet website of a REALTOR® is an Adver-tising vehicle. In the event of a multiple page website,every page is an Advertising vehicle. All propertiesdisplayed and all representations made on a websitemust comply with the REALTOR® Code as well as ap-plicable provincial, federal and any other requirementsregarding Advertising.13.2 The advertised or offered price shall not be otherthan that which was agreed upon in writing with theSeller.

14.1 Unless otherwise agreed upon in writing, allproperty Advertising must include the name of the List-ing brokerage.14.2 Listing brokerages may permit the Advertising oftheir properties by other brokerages when authorizedin writing by the Seller to do so.14.3 Virtual Office Websites (VOWs), Internet DataExchange Websites (IDXs) and any other similar sitesor technologies which display properties of otherREALTORS® shall be subject to all applicable laws,and be operated in accordance with the rules estab-lished by the appropriate real estate board(s) for suchsites.14.4 Interpretation 13.1 also applies to Article 14.

14. Advertising Listings of Other REALTORS®

REALTORS® may only advertise aproperty if such Advertising hasnot been restricted at the requestof the Seller and is in accordancewith provincial and federalregulations.


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15. Advertising Claims

Claims or offerings in Advertisingmust be accurate, clear andunderstandable.

15.1 Advertising of Compensation shall include thedetails of services provided and whether any addi-tional charges may apply. If the services to be pro-vided for the advertised Compensation do not includelisting on MLS®, a statement to that effect must beincluded.15.2 Representations of performance (e.g. "#1," "top-selling," etc.) must include the geographical area re-ferred to, the relevant time-frame (e.g. January-June2004) and the source or basis on which the claim isbased (e.g. based on the number of sales on the MLS®

system of the relevant Board for the specified timeperiod).15.3 Advertising of programs, initiatives or guaran-tees (e.g. "Buy a house with 0% down," "If I don't sellyour house, I will buy it from you," must clearly set outall significant details of how the program works, in-cluding, but not limited to, exceptions and time frames.15.4 Significant conditions, restrictions, limitationsand additional charges shall be fully and prominentlydisplayed in the body of the advertisement near theclaim or offering in easily readable form and shallcomply with all applicable laws.15.5 A condition, restriction, limitation or additionalcharge shall be considered “significant” if it wouldlikely affect a consumer's decision to retain theREALTOR® brokerage.15.6 Any claims or offerings in advertising must alsocomply with all applicable laws, including the Com-petition Act.15.7 Interpretation 13.1 Applies to Article 15

16.1 REALTORS® should be familiar with the applica-ble human rights legislation.


16. Discrimination

The REALTOR® shall not denyprofessional services to or be aparty to any plan to discriminateagainst any Person for reasons ofrace, national or ethnic origin,religion, colour, sex, familystatus, age, or sexual orientation,marital status or disability.

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17. Compliance with Board/ Association Bylaws

The REALTOR® shall abide by theBy-Laws, Rules, Regulations andpolicies established by theREALTOR®’s Real Estate Board,Provincial/Territorial Association,and The Canadian Real EstateAssociation (CREA).

19.1 The REALTOR® should not comment in a deroga-tory manner as to the capacity, integrity, and compe-tence of any other Registrant.19.2 Where any REALTOR® is asked to comment ona specific transaction or the business practices of an-other Registrant, such comments should be given withstrict professional integrity, objectivity and courtesy.19.3 This Article does not apply to truthful Advertisingby REALTORS®. Any Advertising by a REALTOR® whichcontains seemingly derogatory statements about otherRegistrants or competitors, their businesses or theirbusiness practices may form the basis of an ethicscharge only if such statements are false or misleadingwithin the meaning of the Competition Act, or areotherwise prohibited by law.

18.1 A board may only charge a REALTOR® underthis Article once he or she has been found to haveviolated a statute or regulation by the body duly au-thorized to make such a determination.18.2 A certificate of conviction or other proof of non-compliance issued by a duly authorized body may berelied on by a board as evidence of non-compliancewith this Article.18.3 Nothing in this Article prevents a board frominitiating discipline proceedings where the conductwhich is the subject of charges under other statutes orregulations may also constitute a violation of the Codeof Ethics and Standards of Business Practice.


18. Compliance with Statutory Requirements

The business of a REALTOR® shallbe conducted in strict accordancewith all statutory and regulatoryrequirements.

19. Discrediting another Registrant

The REALTOR® shall neverpublicly discredit any otherRegistrant. If the REALTOR®’sopinion is sought, it should berendered with strict professionalintegrity and courtesy.

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20. Respecting Contractual Relationships

The agency or other contractualrelationship of a Registrant shallbe respected by all REALTORS®.

Negotiations regarding an offeror the acceptance of an offerwith any party who is exclusivelyrepresented shall be carried onwith the Registrant representingthe party except with the consentof the Registrant.

20.1 A REALTOR®, when negotiating on behalf of aBuyer, shall not use the terms of an offer to Purchase tomodify the Listing broker’s offer of Compensation toco-operating brokers, nor make the submission of anoffer to Purchase contingent on the Listing broker’sagreement to modify the offer of Compensation.20.2 A REALTOR® should not in any manner, by spe-cific direction or suggestion, advise a party to a con-tract that the party should attempt to breach the con-tract.20.3 Prior to the expiry of an existing listing/buyeragency agreement, a REALTOR® may enter into a List-ing agreement with a seller for the same property or abuyer agency agreement with the same buyer pro-vided the following conditions are met: (a) Any com-munication with the seller/buyer: (i) may be initiatedby the seller/buyer; or (ii) if initiated by the REALTOR®

must comply with Board Bylaws/Rules concerningsolicitation and any applicable provincial or federallegislation or regulation; and (b) any new Listing agree-ment for the property or buyer agency agreement withthe buyer shall not commence until the expiry of thecurrent Listing/buyer agency agreement.

21.1"Principal” means the individual designated asthe representative of the firm, either for the purposesof the provincial real estate licensing legislation orwith regard to the relationship between the broker-age and the local real estate Board/Association.21.2 In determining the adequacy of supervision, allrelevant factors may be considered, including, but notlimited to: (a) whether the brokerage had establishedwritten policies and procedures which were providedto all REALTORS® and other personnel; (b) whetheroffice activities were regularly reviewed and updatedto ensure that the policies and procedures were cur-rent and were being properly implemented; (c) whetherthe principal had undertaken all reasonable steps toensure compliance by all REALTORS® and other per-sonnel; (d) whether each transaction was reviewedby the principal, including trust deposits, sales recordsheets, Listing and sales contracts and (e) whether theprincipal took remedial action when a violation by aREALTOR® or other personnel was discovered.(f) whether the brokerage regularly informed or up-dated the firm REALTORS® and other personnel onchanges in legislation, rules and regulations or otherrelevant issues.


21. Principal (Broker) Responsibility

The principal of a brokerage isrequired to supervise and controlthe activities of the REALTOR®

and other personnel for whomhe/she is responsible.

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22. Cooperation with Board/Association

Should a REALTOR® be asked toco-operate in any way inconnection with a disciplinaryinvestigation or proceeding, theREALTOR® shall place allpertinent facts before the properCommittee of the real estateBoard or Association to which theREALTOR® belongs.

23. Arbitration

In the event of a dispute betweenREALTORS® associated withdifferent brokerages of the samelocal Board/Associationregarding the Compensationearned or to be earned inconnection with a real estatetransaction, the dispute shall besubmitted for arbitration inaccordance with the By-Laws,Rules and Regulations of theirlocal Board/Association.

22.1 A REALTOR® who is being investigated for al-leged unethical conduct should provide the appropri-ate Committee, upon request, with all materials andinformation in the REALTOR®’s possession in connec-tion with the matter being investigated.22.2 Where a REALTOR® is asked to assist the ap-propriate Committee in connection with a disciplinaryinvestigation or proceeding involving anotherREALTOR®, the REALTOR® should provide all relevantmaterials and information in that REALTOR®’s posses-sion, and be prepared to testify at any hearing of thematter. Such assistance should not be deemed a “con-troversy” within the meaning and intent of Article 25.22.3 Where a REALTOR® has reasonable and prob-able grounds to believe: (a) that another REALTOR®

has apparently breached the Code of Ethics and Stand-ards of Business Practice, and (b) that a person willlikely suffer serious damage as a consequence of theapparent breach, the REALTOR® should immediatelyreport the apparent breach to the appropriate Boardin writing with the reporting REALTOR®’s name, ad-dress and telephone number. The report should bemade bona fide without malice or ulterior motive.

23.1 A dispute between REALTORS® which is prop-erly submitted for arbitration pursuant to this Articleshould not be deemed a “controversy” within the mean-ing and intent of Article 25.23.2 Where a REALTOR® fails to submit a dispute toarbitration in accordance with the applicable By- Lawsand Rules and Regulations, this Article may be pleadedas a defence in any other action or proceeding.23.3 This Article does not require REALTORS® to arbi-trate when all parties to the dispute advise their Board/Association in writing that they choose not to arbitratebefore the Board/Association.


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24. Inter-Board and Inter-provincial Arbitration

In the event of a dispute betweenREALTORS® associated withdifferent brokerages andbelonging to different localBoards/Associations, regardingthe Compensation earned or tobe earned in connection with areal estate transaction, thedispute shall be submitted toarbitration in accordance withthe By-Laws and Rules andRegulations of the appropriateProvincial/Territorial Association.Should the REALTORS® belong todifferent Provincial/TerritorialAssociations, the dispute shall bearbitrated in accordance with theBy-Laws and Rules andRegulations of The CanadianReal Estate Association.

24.1 Interpretations 23.1, 23.2 and 23.3 also ap-ply to Article 24.

25.1 Any REALTOR® who is aware of or involved in acontroversy with another REALTOR®, resulting from thealleged misconduct or impropriety of that otherREALTOR®, should place such matters before the ap-propriate Committee for resolution in order that thematter may be resolved in accordance with the Rulesand Regulations of the Board, Association, Society orCouncil to which the REALTOR® belongs.25.2 “Controversies,” as used in this Article, does notinclude aggressive or innovative business practices,which are otherwise ethical and disputes over Com-pensation or the division of commissions/fees.25.3 A REALTOR® should not disrupt or obstruct adisciplinary investigation or proceeding relating to thealleged misconduct of another REALTOR®.25.4 A REALTOR® should not make any unauthorizeddisclosure or dissemination of allegations, findings ora decision in connection with a disciplinary investiga-tion, hearing or appeal.25.5 A REALTOR® should not intentionally impede adisciplinary investigation or proceeding by filing mul-tiple complaints based on the same event or transac-tion.


25. Avoid Controversies

The business of a REALTOR® shallbe conducted so as to avoidcontroversies with otherREALTORS®.

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26. CREA Trademarks

A REALTOR® shall only use thetrademarks of The Canadian RealEstate Association in accordancewith CREA’s rules, regulationsand policies.

26.1 A REALTOR® shall not challenge the validity ofCREA’s Trademarks.26.2 A REALTOR® shall not use any of CREA’s Trade-marks in domain names, e-mail addresses or meta-tags unless specifically authorized to do so by CREApolicies.26.3 CREA’s Trademarks are not to be used ashypertext links in Internet websites.26.4 A REALTOR® shall not use, display, or attempt toregister as trademarks any word, phrase, term, initialsor design marks that incorporate, or are confusinglysimilar to, any trademark of CREA.26.5 A REALTOR® shall not incorporate into corpo-rate or trade names any trademark of CREA or anyconfusingly similar mark.

27. Intellectual Property Rights of Boards/Associations

REALTORS® shall respect theintellectual property and otherownership rights of otherREALTORS®, Boards, Provincial/Territorial Associations andCREA.

27.1 REALTORS® shall only access and use thewebsites and other databases of Boards, Associations,CREA and other REALTORS® in accordance with thepolicies for use established by the owner of the site.27.2 REALTORS® should not infringe the copyright orother ownership interest of another REALTOR® in his/her Listing.27.3 A REALTOR® shall not use the trade names ortrademarks or confusingly similar trade names or trade-marks of any firm, franchise, or other organizationother than those with which the REALTOR® is affiliatedor otherwise authorized in writing to use. This restric-tion includes but is not limited to, unauthorized Internetuses such as domain names, e-mail addresses andmetatags.


28.1 A REALTOR® is acting as a principal when he orshe is buying or selling or attempting to buy or sell aninterest in the property either directly, on his or herown behalf or through any entity which the REALTOR®

holds any direct or indirect interest.

28. REALTOR® Acting as Principal

A REALTOR®, when acting as aprincipal in a real estatetransaction, remains obligated bythe duties imposed by theREALTOR® Code.

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The following definitions are illustrativeonly and are intended simply to assistthe reader’s understanding of the Codeof Ethics and Standards of BusinessPractice. Throughout this document,words that are defined have beencapitalized.

DEFINITIONS

ADVERTISING means any marketingactivity to promote the brokerage, theREALTOR® or a transaction andincludes any verbal, written or graphicrepresentation in any form, includingelectronic media.

APPRAISAL means an opinion of thevalue of specified interests in, oraspects of, identified real estate basedon an analysis of relevant data andperformed by persons who have therequired training in the preparation ofappraisals.

BOARD means a member local realestate Board/Association orprovincial/territorial association andincludes, where appropriate, acompliance body.

BUYER means a Person acquiring orattempting to acquire an interest in realestate through a Purchase.

CLIENT means a Buyer or a Sellerwhom a REALTOR® is representingas agent.

COMPENSATION means the paymentto a REALTOR® for services related to aPurchase or Sale and includescommissions, fees and any other formof remuneration or reward for servicesrendered by a REALTOR®.

CONFIDENTIAL INFORMATIONmeans any personal or businessinformation relating to the individualthat ought to be considered confidentialby its nature.

CUSTOMER means a Buyer or Sellerwho is not a Client.

CREA’S TRADEMARKS include,but are not limited to, the wordsREALTOR® and REALTOR Link®, theREALTOR® and REALTOR Link® logos,Multiple Listing Service®, MLS® andthe related MLS® logos.

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PURCHASE includes an actual orproposed exchange, option, leaseor other acquisition of an interest inreal estate.

REALTOR® is a registered trademark ofREALTOR® Canada Inc., a companyowned equally by the Canadian RealEstate Association and the NationalAssociation of REALTORS® and refersto licensed real estate practitionerswho are members of The CanadianReal Estate Association.

REGISTRANT means a person licensedby a jurisdiction to trade in real estate.

SALE includes an actual or proposedexchange, option, lease or otherdisposition of an interest in real estate.

SELLER means a Person disposing of orattempting to dispose of an interest inreal estate by Sale.

SERVICE AGREEMENT means anagreement that establishes arelationship between a brokerage anda Person which identifies theresponsibilities of each party andincludes the services to be performedby the brokerage and anycompensation payable.

VOW (“Virtual Office Website”) refersto a brokerage or REALTOR® Internetwebsite, or a feature of a such Internetwebsite, through which the REALTOR®

provides real estate brokerage servicesto consumers with whom the REALTOR®

has first established a broker-consumerrelationship, where the consumer hasthe opportunity to search for MLS®

data, either from the MLS® database ofthe board or from REALTOR.ca, subjectto the rules of the applicable realestate board and the REALTOR®’soversight, supervision andaccountability.

DUAL AGENCY means a relationshipin which a brokerage or a REALTOR®

represents, as agent, more than oneparty in the same Transaction.

IDX (“Internet Data Exchange”), refersto a reciprocal system wherebyconsenting brokerages agree toadvertise on their Internet websites,each other’s active listings, either fromthe MLS® database of the board orfrom REALTOR.ca, subject to the rulesof the applicable real estate boardand the REALTOR®’s oversight,supervision and accountability.

IMMEDIATE FAMILY means aspouse, son, daughter, parent,brother or sister and includespersons who are in suchcategories because of marriage,common-law relationships, oradoption as well as entities inwhich such persons have anydirect or indirect financial interest.LISTING means an agreement betweena brokerage and a Client granting thebrokerage the authority to offer forsale the Client’s real property withdefined terms and conditions. A listingon MLS® must involve agency and anoffer of compensation to the sellingoffice.

OPINION OF VALUE means anestimate of the value of specifiedinterests in, or aspects of, identifiedreal estate which may be based whollyor partly on comparative marketanalyses. An Opinion of Value maycontain more or less analysis ofrelevant data than an appraisal andmay be performed by a REALTOR®.

PERSON includes, where applicable,an individual, a partnership, acorporation and any other entitylegally capable of buying and sellingreal estate.

the realtor® code - lstar · in real estate, capable of including and accommodating every change,...

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