CREA Café Blog
Violating the REALTOR® Code May Lead to Serious Consequences
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REALTOR® Code
Setting the standard for professionalism in Canadian real estate.
Moral Integrity. Competency. Dedication.
A REALTOR®’s ethical obligations must be based in these core values. The REALTOR® Code sets the standards high when it comes to professional conduct, which helps protect Canadians’ rights and interests.
The first Code was approved in 1913 and has been amended many times to reflect changes in the real estate marketplace, the needs of property owners, and society’s perceptions and values.
The REALTOR® Code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures the protection of the rights and interests of consumers of real estate services. As a condition of membership, all REALTORS® agree to abide by the Code and violations may lead to serious consequences.
The REALTOR® Code establishes obligations that may be higher than those mandated by law. However, in any instance where the code and the law conflict, the obligations of the law must take precedence.
Some of the key components of the REALTOR Code® include:
REALTORS® must disclose in writing whom they are representing as an agent in the transaction, and explain to parties in a transaction the details of the agency relationship.
REALTORS® can’t acquire an interest in property (either directly or indirectly) without disclosing the fact that they’re real estate professionals.
When completing a transaction, the real estate salesperson is placed in a position of trust. Consumers rely on their professional expertise, skills, knowledge, competence, and integrity.
When a real estate practitioner acts unethically, public confidence is undermined, not just in the people involved, but in the industry as a whole.
