2 Important Changes to the Real Estate Code of Ethics in 2019

Following a code of ethics is important for every profession. Whether you are in medicine, law, teaching or real estate, ethical behavior is critical. From time to time, the code may need to be changed or amended to reflect changes in the profession. This year, important changes were made to the Real Estate Code of Ethics. This post highlights two of the changes.

Amendment to Standard of Practice 1-7

The amendment to the Real Estate Code of Ethics Standard of Practice 1-7 is about submitting offers. Real estate brokers must follow a certain protocol when submitting an offer on behalf of a buyer. If a cooperating real estate broker makes an offer on a property in writing, the listing broker then must supply in writing a notice of the way in which the offer was handled. The seller can decide whether or not the offer can be presented. The listing broker must let the cooperating broker know in writing if the seller or landlord waived the obligation to have the offer presented. If the offer was submitted, the broker needs to send a written affirmation.

Violations of the Real Estate Code of Ethics

Violating any code of ethics leads to trouble. Real estate is no different. The change in this part of the code involves publication of the names of violators. There is no change in the code regarding publication of names when two violations in the code have been made within a three-year period. The update to the code has to do with ethics citation discipline. It is not counted as a violation unless the association authorizes publication of the offender’s name. The three-year time frame can be lengthened for certain acts if the association deems it necessary.

Publication of the name of a violator may be accompanied by his or her picture. It is also appropriate to include a description of the violation. It is not appropriate to include the name of the company where the violator worked.

The Real Estate Code of Ethics says that if a person violates the code, his or her name can be published after disciplining. The violator will receive a letter, a fine or may be suspended or expelled. Publication is limited to a communication vehicle within the association of which the violator was or is a member. Publication via electronic means is limited. Only those members in the association may have access to the electronic publication revealing the violator’s name.

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