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Preamble Under all is the land. Upon its wise utilization and widely allocated ownership depends the survival and growth of free institutions and of our civilization. Real Estate Professionals should recognize that the interests of the country 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 Real Estate Professionals should dedicate themselves, and for which they should be diligent in preparing themselves. Real Estate Professionals, therefore are zealous to maintain and improve the standards of their calling and share with their fellow professionals a common responsibility for its integrity and honor. In recognition and appreciation of their obligations to clients, customers, the public and each other, the professionals of this Association continuously strive to become and remain informed on issues affecting real estate and, and as knowledgeable professionals, they willingly share the result 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. Professionals, of this association, 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 have an obligation to bring such matters to the attention of the Board of Directors of the Association. Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, the professionals of this association 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 professionals 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, when used to identify certain Real Estate Professionals, 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 these obligations, REALTORS/Real Estate Professionals 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/Real Estate Professionals pledge to observe its spirit in all their activities and to conduct their business in accordance with the tenets set forth below. Duties to Clients and Customers ARTICLE 1 When representing a buyer, seller, landlord, tenant or other client as an agent, REALTORS/Real Estate Professionals pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve the professional of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenet or other party in a non-agency capacity, Real Estate Professionals remain obligated to treat all parties honestly. ARTICLE 2 REALTORS/Real Estate Professionals shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS/Real Estate Professionals shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate expertise, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by law. ARTICLE 3 REALTORS/Real Estate Professionals shall cooperate with others brokers except when cooperation is not in the client's best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. ARTICLE 4 REALTORS/Real Estate Professionals shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner's agent or broker. In selling property they own, or in which they have any interest, Real Estate Professionals shall reveal their ownership or interest in writing to the purchaser or the purchaser's representative. ARTICLE 5 REALTORS/Real Estate Professionals shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. ARTICLE 6 REALTORS/Real Estate Professionals shall not accept any commission, rebate, or profit on expenditures made for their client, without the client's knowledge and consent. When recommending real estate products or services (e.g., insurance, warranty programs mortgage financing, title insurance, etc.), Real Estate Professionals shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the professional or professional's firm may receive as a direct result of such recommendation. ARTICLE 7 In a transaction, REALTORS/Real Estate Professionals shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the client or clients. ARTICLE 8 REALTORS/Real Estate Professionals shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients' monies, and other like items. ARTICLE 9 REALTORS/Real Estate Professionals, for the protection of all parties, shall assure whenever possible that agreements shall be in writing, and shall be in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party upon their signing or initialing. Duties to the Public ARTICLE 10 REALTORS/Real Estate Professionals shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. REALTORS/Real Estate Professionals shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. REALTORS/Real Estate Professionals in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. ARTICLE 11 The services which REALTORS/Real Estate Professionals provide to their clients and customers shall conform to standards of practice and competence which are reasonable expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real estate management, commercial and industrial real estate brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate. REALTORS/Real Estate Professionals shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client and their contribution to the assignment should be set forth. ARTICLE 12 REALTORS/Real Estate Professionals shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS/Real Estate Professionals shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as professionals is clearly identifiable in any such advertising. ARTICLE 13 REALTORS/Real Estate Professionals shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it. ARTICLE 14 If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, REALTORS/Real Estate Professionals shall place all pertinent facts before the proper tribunal of the of the Association of Realtors and shall take no action to disrupt or obstruct such processes. Duties to REALTORS ARTICLE 15 REALTORS/Real Estate Professionals shall not knowingly or recklessly file false or misleading statements about competitors, their businesses, or their business practices. ARTICLE 16 REALTORS/Real Estate Professionals shall not engage in any practice or take any action inconsistent with the agency or other exclusive relationship recognized by law that other Real Estate Professionals have with clients. ARTICLE 17 In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between REALTORS (principals) associated with different firms, arising out of their relationship as REALTORS, the REALTORS shall submit the dispute to arbitration in accordance with the regulations of their Association rather than litigate the matter. In the event clients of REALTORS wish to arbitrate contractual disputes arising out of real estate transactions, REALTORS shall arbitrate those disputes in accordance with the regulations of their association, provided the clients agree to be bound by the decision. The obligation to participate in arbitration contemplated by this Article includes the obligation of REALTORS (principals) to cause their firms to arbitrate and be bound by any award.
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