Filing an Ethics Complaint
The National Association of Realtors (NAR) has established a Code of Ethics that all members must adhere to. If a realtor is believed to have violated the Code of Ethics, an ethics complaint can be filed through the local association of REALTORS® where the realtor holds membership (Ethics Complaints, Arbitration Requests, and Related Information, n.d.).
Key Facts
- Filing a Complaint: If you believe that a realtor has violated the code of ethics, you can file an ethics complaint alleging the violation(s) through the local association of REALTORS® where the realtor holds membership.
- Sanctions: The Code of Ethics and Arbitration Manual outlines the potential sanctions for violations. These sanctions can include fines, which may not exceed $15,000, and suspension from the board or association.
- Reasonable and Judicious Use of Discipline: The National Association of REALTORS® (NAR) emphasizes the importance of reasonable and judicious use of discipline. The discipline should be commensurate with the offense, and it should be progressive, increasing incrementally for subsequent violations. The goal is to educate realtors about their professional obligations and serve as a deterrent to future violations.
- Considerations for Discipline: When determining appropriate discipline, several factors are taken into account. These include whether the violation was unintentional or intentional, the respondent’s history of prior violations, mitigating or extenuating circumstances, and the severity of the violation. Cases involving misappropriation of funds, discrimination, or fraud are considered particularly egregious violations.
Potential Sanctions for Violations
The Code of Ethics and Arbitration Manual outlines various sanctions that may be imposed for violations of the Code of Ethics (Code of Ethics and Arbitration Manual, n.d.). These sanctions include:
- Fines not exceeding $15,000
- Suspension from the board or association
- Letters of reprimand
- Required education courses
Reasonable and Judicious Use of Discipline
The NAR emphasizes the importance of reasonable and judicious use of discipline when addressing violations of the Code of Ethics (Code of Ethics and Arbitration Manual, n.d.). The discipline should be commensurate with the offense and should be progressive, increasing incrementally for subsequent violations. The goal is to educate realtors about their professional obligations and serve as a deterrent to future violations.
Considerations for Determining Appropriate Discipline
When determining appropriate discipline for a violation of the Code of Ethics, several factors are taken into account (Code of Ethics and Arbitration Manual, n.d.). These include:
- Whether the violation was unintentional or intentional
- The respondent’s history of prior violations
- Mitigating or extenuating circumstances
- The severity of the violation
Cases involving misappropriation of funds, discrimination, or fraud are considered particularly egregious violations and may result in more severe sanctions.
References
- Feeney, C. (2022, December 30). The Realtor Code of Ethics: What It Is and How to Apply It. HubSpot Blog. https://blog.hubspot.com/sales/realtor-code-of-ethics
- Ethics Complaints, Arbitration Requests, and Related Information. (n.d.). National Association of Realtors. https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/ethics-complaints-arbitration-requests-and-related-information
- Code of Ethics and Arbitration Manual. (2024). National Association of Realtors. https://www.nar.realtor/code-of-ethics-and-arbitration-manual/part-4-appendix-vii-sanctioning-guidelines
FAQs
What is the process for filing an ethics complaint against a realtor?
If you believe a realtor has violated the Code of Ethics, you can file an ethics complaint through the local association of REALTORS® where the realtor holds membership.
What are the potential sanctions for violating the Code of Ethics?
Sanctions for violating the Code of Ethics may include fines, suspension from the board or association, letters of reprimand, and required education courses.
How does the NAR determine the appropriate level of discipline for a violation?
The NAR considers several factors when determining the appropriate level of discipline, including the severity of the violation, whether it was intentional or unintentional, the realtor’s history of prior violations, and any mitigating or extenuating circumstances.
What are some examples of violations that may result in more severe sanctions?
Cases involving misappropriation of funds, discrimination, or fraud are considered particularly egregious violations and may result in more severe sanctions.
Can a realtor’s membership be terminated for violating the Code of Ethics?
Yes, in severe cases, a realtor’s membership may be terminated for violating the Code of Ethics.
What is the purpose of the Code of Ethics for realtors?
The Code of Ethics serves to protect the public and maintain the integrity of the real estate profession by establishing standards of conduct and ethical behavior for realtors.
Are there any resources available to help realtors understand and comply with the Code of Ethics?
Yes, the NAR provides various resources to help realtors understand and comply with the Code of Ethics, including training programs, educational materials, and a hotline for ethical questions.
How can I find out more about the Code of Ethics for realtors?
You can find more information about the Code of Ethics for realtors on the NAR website, including the full text of the Code and resources for filing ethics complaints.