Primary Obligation to the Client
Article 1 of the Code of Ethics emphasizes the paramount importance of protecting and promoting the interests of clients by real estate professionals (REALTORS) acting as agents for buyers, sellers, landlords, tenants, or any other clients (BerkshireRealtors, 2019). This obligation is considered primary, meaning that REALTORS must prioritize the best interests of their clients above all else.
Key Facts
- Obligation to protect and promote client interests: According to Article 1, when acting as an agent for a buyer, seller, landlord, tenant, or any other client, real estate professionals (REALTORS) pledge themselves to protect and promote the interests of their client.
- Primary obligation to the client: The obligation to the client is considered primary, meaning that the REALTOR’s main focus should be on serving the best interests of their client.
- Duty to treat all parties honestly: While the primary obligation is to the client, REALTORS are also obligated to treat all parties involved in the transaction honestly. This duty applies to both agency and non-agency relationships.
- Scope of application: Article 1 applies to all real estate-related activities and transactions, regardless of whether they are conducted in person, electronically, or through any other means.
Duty to Treat All Parties Honestly
While the primary obligation is towards the client, REALTORS are also ethically bound to treat all parties involved in the real estate transaction honestly (NAR, 2024). This duty applies equally to agency and non-agency relationships. Honesty encompasses providing accurate and complete information, avoiding misrepresentation or concealment of material facts, and acting in a transparent and forthright manner.
Scope of Application
Article 1’s applicability extends to all real estate-related activities and transactions, irrespective of the mode of communication or execution (NAR, 2024). Whether conducted in person, electronically, or through any other means, REALTORS must adhere to the ethical principles outlined in Article 1.
Conclusion
In essence, Article 1 of the Code of Ethics serves as a cornerstone of professional conduct for REALTORS, emphasizing the primacy of client interests, the duty of honesty towards all parties, and the comprehensive scope of ethical obligations in real estate transactions.
References
BerkshireRealtors. (2019). Code of Ethics Case Study: Article 1 – Promotion of Client’s Interests. Retrieved from https://berkshirerealtors.net/code-of-ethics-case-study-article-1-promotion-of-clients-interests/
NAR. (2024). 2024 Code of Ethics & Standards of Practice. Retrieved from https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/2024-code-of-ethics-standards-of-practice
PGPCNPrealtors. (n.d.). Code of Ethics. Retrieved from https://www.pgpcnprealtors.com/code-ethics/index
FAQs
What is the primary obligation of REALTORS under Article 1?
Answer: REALTORS’ primary obligation is to protect and promote the interests of their clients in all real estate-related activities and transactions.
Does Article 1 apply only to agency relationships?
Answer: No, Article 1 applies to both agency and non-agency relationships. REALTORS are required to treat all parties honestly, regardless of the type of relationship.
What does “treating all parties honestly” entail?
Answer: Treating all parties honestly involves providing accurate and complete information, avoiding misrepresentation or concealment of material facts, and acting in a transparent and forthright manner.
How does Article 1 impact the scope of REALTORS’ ethical obligations?
Answer: Article 1’s applicability extends to all real estate-related activities and transactions, irrespective of the mode of communication or execution. REALTORS must adhere to ethical principles in person, electronically, and through any other means.
Can REALTORS prioritize their own interests over those of their clients?
Answer: No, REALTORS are ethically bound to prioritize the interests of their clients above their own. Any inducement or instruction from clients cannot justify departing from this ideal.
What happens if a REALTOR violates Article 1?
Answer: Violations of Article 1 may result in disciplinary action by the local Board of REALTORS®, including fines, suspension, or even expulsion from the association.
How can clients ensure that their REALTOR is adhering to Article 1?
Answer: Clients can ensure that their REALTOR is adhering to Article 1 by asking questions, reviewing contracts carefully, and reporting any suspected violations to the local Board of REALTORS®.
Why is Article 1 important in the real estate industry?
Answer: Article 1 is crucial in the real estate industry because it establishes a foundation of trust and professionalism. By adhering to Article 1, REALTORS demonstrate their commitment to acting in the best interests of their clients and upholding the integrity of the real estate profession.