StraightTalk   a guide to understanding the Code of Ethics

StraightTalk is a great place to start learning how living the code can help improve your business, but it’s no legal substitute for the Code of Ethics.

Thoughts on Article 4

Disclose. Disclose. Disclose

This article is way up there on the scale of earning people’s trust. As a REALTOR®, you can’t buy or acquire an interest in a piece of property for yourself, without telling the seller that you are in fact buying it for yourself. You can’t even make the offer. And that applies if you are representing an immediate family member, your firm or any other group/entity that you might own. You have to tell the seller or her broker/agent, that you are buying or leasing the property for yourself.

The same is true if you are selling. You have to tell potential buyers that it’s your property.

Standard of Practice 4-1

To protect everyone involved in a transaction, the disclosures required by this article have to be in writing and before any contract is signed.

Next: Make your intentions clear

Terms to Know:

Before we begin, there are several terms that appear in the Code of Ethics that could use a little clarification:

Client is anyone that you or your firm has a formal agreement to work with. It could be an agency relationship or you could be providing a non-contracted service.

Customer is a party to a real estate transaction who receives information, services or some other benefit from you, but doesn’t have a contract with you or your firm.

Prospect is a buyer, seller, tenant or landlord with whom you or your firm has no contract. An agent is anyone with a real estate license (though not necessarily a REALTOR®) acting in an agency relationship as defined by Virginia law.

Broker is someone with a real estate license (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and “broker” means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.

REALTOR® is someone who has earned his/her real estate license and also earned the right to use the title. REALTORS® serve many roles in different real estate transactions. For our purposes, we mean the term to be all inclusive, whether the REALTOR® represents a buyer, seller, tenant or landlord. Whether they provide contracted services or provide a service without a contract.

© 2006 Virginia Association of REALTORS®     legal notice