BY DAVID NDERITU, Dsquare Realtors (LLB, Hons), PATRICK KIMANZI And Online.
People use the terms REALTOR® and real estate agent interchangeably, but that is incorrect. Not every real estate agent is a REALTOR® and not every REALTOR® is a real estate agent. There are differences between REALTORS® and real estate agents.
They are not the same. Although both must be licensed to sell real estate, the main
difference between a real estate agent and a REALTOR® is a REALTOR® is a member of the National Association of REALTORS®.
A REALTOR® can be a real estate agent, a broker-associate, a managing broker, an exclusive buyer's agent, among a variety of other common terms.
REALTOR® must subscribe to the REALTOR® Code of Ethics. There are 17 Articles in the Code of Ethics. To many consumers, this is the part that matters. If you are wondering why the Code of Ethics matter to a consumer, read on.
The Code of Ethics is strictly enforced by local real estate boards. The 17 Articles of the Code of Ethics also contains various underlying Standards of Practice. It's not just a bunch of rules that agents swear to uphold and adhere to because their broker made them join the Board. The Standards are much more restrictive and confining to conduct than those state guidelines governing agents who simply hold a real estate license.
While there is no evidence nor guarantee that all REALTORS® are morally or ethically better than unaffiliated real estate agents, it is an attempt by the industry to regulate and, as such, deserves recognition.
Keeping mind, of course, that even the non-NAR member "real estate agent" is held to the same legal standard as a practical matter.
Each of the 17 Articles carries weight to a Realtor in her every-day business practice, but one article typically stands above the rest. It is the basis for the way a Realtor operates.
Fortunately, it is the first Article, which sets the tone. Nowhere does it state the Realtor must be fair to all parties, such as a listing agent dealing with a buyer's agent, but a Realtor must be honest.
Above all, however, the Realtor must pledge to put the interests of her clients above her own.
Here are 17 things that a REALTOR® promises to do, which non-affiliates do not:
#1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly.
#2) Shall refrain from exaggerating, misrepresenting, or concealing material facts ; and is obligated to investigate and disclose when situations reasonably warrant.
#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.
#4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
#5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
#6) Shall not collect any commissions without the seller's knowledge nor accept fees from a third-party without the seller's express consent.
#7) Shall refuse fees from more than one party without all parties' informed consent.
#8) Shall not co-mingle client funds with the agent's own.
#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.
#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
#12) Must engage in truth in advertising.
#13) Shall not practice law unless the agent is a lawyer.
#14) Shall cooperate if charges are brought against them and present all evidence requested.
#15) Agree to not bad mouth competition and agree not to file unfounded ethics complaints.
