Take 5
Common Code of Ethics Violations: How to Steer Clear
With Pamela Banks
TRT: 3m 58s
Video Transcription


Pamela Banks directly addresses camera:  Have you been caught in a code of ethics violation? No. Good. But it never hurts to brush up on some of the most common violations. I'm Pamela Banks, a RealtorŪ with ReMax Prestige in Wellington. I currently serve as a member of my local association's grievance committee. Let's take five minutes to talk about how you can avoid violations, by understanding the RealtorsŪ Code of Ethics. Adhering to the Code of Ethics and best practices is crucial for maintaining your reputation and upholding the integrity of our industry.

Here are the violations I see most often. The first is article one on professionalism. It emphasizes the need for honesty, integrity and respect in all dealings. As RealtorsŪ, we pledge to protect and promote the best interests of our buyers and sellers while treating all parties involved in a transaction fairly. This means being truthful and transparent, whether in an agency or non agency relationship.

One common issue is the temptation to exaggerate a property's value to secure a listing. Misleading a seller by using outdated or non comparable sales data is unethical and a violation. Instead, provide a thorough comparative market analysis with accurate, up to date information. This demonstrates your diligence and helps the seller make an informed decision. Use tools like MLS, RealtorsŪ Property Resource, and even consumer facing platforms like Zillow.

While Zillow isn't always perfect. It provides a baseline many sellers and buyers reference. Ensuring you are familiar with customers tools can help maintain transparency. Next, it is our responsibility to disclose. Disclosures about honesty regarding the property's condition and any material fact that could influence a buyer's decision. We are not required to discover latent defects, but we must disclose known issues.

Remember, we are not attorneys and should not act like them. This is covered under article 13 regarding the unlawful practice of law. The use of a seller's disclosure is essential. It documents the property's condition. Ensure the seller fills out the form, not you. This protects you and the seller by providing a clear record of disclosed information, concealing known issues like plumbing defects, or misrepresenting a property's feature is a violation of article two.

Always provide accurate descriptions and information and correct any exaggerations or omissions. Cooperation with other RealtorsŪ is essential for a smooth transaction process. Article three of the Code of Ethics stresses the importance of working together. While clarifying that cooperation does not equate to an obligation to share compensation or fees. When dealing with offers,

ensure all terms are clear and in writing. When seeking information from another RealtorŪ concerning a property, let them know you are a RealtorŪ and whether you are calling on behalf of yourself or a customer, and never provide access to a property on terms other than those established by the owner or seller.

Recent changes in the industry mean we must verify compensation details directly, as these will no longer be included in the MLS. Always confirm the terms of cooperation before engaging with the listing. Adhering to the code of ethics isn't just about avoiding violations, it's about fostering trust and respect in our profession. Treat others as you wish to be treated, maintain high standards, and continually update your knowledge of the market and legal requirements.

Remember, you are not just a RealtorŪ, but a steward of trust in real estate.