STANDARDS OF PRACTICE AND CODE OF ETHICS

    Minneapolis area Association of REALTORS®

    Minnesota  of REALTORS®

    National Association of REALTORS®

What is the difference between a REALTOR® and a real estate agent? A REALTOR® is a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. Only REALTORS® may participate in the regional multiple listing service, and have access to the lockboxes that protect properties for sale. Additionally, the REALTOR® network provides the consumer and industry with a complaint and dispute resolution process.

NAR Code of Ethics and Standards of Practice •

CODE OF ETHICS AND STANDARDS OF PRACTICE

of the NATIONAL ASSOCIATION OF REALTORS®

Effective January 1, 2006

2006 Yearbook 45

While the Code of Ethics establishes obligations that may be higher

than those mandated by law, in any instance where the Code of Ethics

and the law conflict, the obligations of the law must take precedence.

Under all is the land. Upon its wise utilization and widely allocated

ownership depend the survival and growth of free institutions and of

the nation and its citizens require the highest and best use of the land

and the widest distribution of land ownership. They require the

creation of adequate housing, the building of functioning cities, the

development of productive industries and farms, and the preservation

of a healthful environment.

Such interests impose obligations beyond those of ordinary commerce.

They impose grave social responsibility and a patriotic duty to

are zealous to maintain and improve the standards of their calling and

integrity and honor.

In recognition and appreciation of their obligations to clients,

strive to become and remain informed on issues affecting real estate

and, as knowledgeable professionals, they willingly share the fruit of

their experience and study with others. They identify and take steps,

through enforcement of this Code of Ethics and by assisting appropriate

regulatory bodies, to eliminate practices which may damage the

public or which might discredit or bring dishonor to the real estate

that may violate the Code of Ethics involving misappropriation

of client or customer funds or property, willful discrimination, or

fraud resulting in substantial economic harm, bring such matters to

(Amended 1/00)

Realizing that cooperation with other real estate professionals promotes

the best interests of those who utilize their services, REALTORS

any unfair advantage over their competitors; and they refrain from

making unsolicited comments about other practitioners. In instances

comment is necessary, their opinion is offered in an objective, professional

manner, uninfluenced by any personal motivation or potential

advantage or gain.

high integrity resulting from adherence to a lofty ideal of moral

conduct in business relations. No inducement of profit and no

instruction from clients ever can justify departure from this ideal.

guide than that which has been handed down through the centuries,

embodied in the Golden Rule, “Whatsoever ye would that others

should do to you, do ye even so to them.”

its spirit in all of their activities and to conduct their business in

accordance with the tenets set forth below.

Duties to Clients and Customers

When representing a buyer, seller, landlord, tenant, or other client as an

interests of their client. This obligation to the client is primary, but it does

When serving a buyer, seller, landlord, tenant or other party in a nonagency

honestly. (Amended 1/01)

remain obligated by the duties imposed by the Code of Ethics.

(Amended 1/93)

The duties the Code of Ethics imposes are applicable whether REALTORS

capacities except that any duty imposed exclusively on agents by law

or regulation shall not be imposed by this Code of Ethics on REALTORS

As used in this Code of Ethics, “client” means the person(s) or entity(ies)

legally recognized non-agency relationship; “customer” means a party

to a real estate transaction who receives information, services, or benefits

landlord who is not subject to a representation relationship with the

(including brokers and sales associates) acting in an agency relationship

as defined by state law or regulation; and “broker” means a real

estate licensee (including brokers and sales associates) acting as an

agent or in a legally recognized non-agency capacity. (Adopted 1/95,

Amended 1/04)

mislead the owner as to market value.

shall not mislead buyers or tenants as to savings or other benefits that

1/93)

the same transaction only after full disclosure to and with informed

consent of both parties. (Adopted 1/93)

as quickly as possible. (Adopted 1/93, Amended 1/95)

submit to the seller/landlord all offers and counter-offers until closing

or execution of a lease unless the seller/landlord has waived this

46 • NAR Code of Ethics and Standards of Practice 2006 Yearbook

continue to market the property after an offer has been accepted by the

obtain the advice of legal counsel prior to acceptance of a

subsequent offer except where the acceptance is contingent on the

termination of the pre-existing purchase contract or lease. (Amended

1/93)

submit to buyers/tenants all offers and counter-offers until acceptance

but have no obligation to continue to show properties to their clients

after an offer has been accepted unless otherwise agreed in writing.

recommend that buyers/tenants obtain the advice of legal counsel if

there is a question as to whether a pre-existing contract has been

terminated. (Adopted 1/93, Amended 1/99)

(as defined by state law) provided by their clients in the course of any

agency relationship or non-agency relationship recognized by law

continues after termination of agency relationships or any non-agency

during or following the termination of professional relationships

with their clients:

1) reveal confidential information of clients; or

2) use confidential information of clients to the disadvantage of

clients; or

advantage or the advantage of third parties unless:

a) clients consent after full disclosure; or

c) it is the intention of a client to commit a crime and the

information is necessary to prevent the crime; or

employees or associates against an accusation of wrongful

conduct.

Information concerning latent material defects is not considered

confidential information under this Code of Ethics. (Adopted 1/93,

Amended 1/01)

real estate licensure and their property management agreement,

competently manage the property of clients with due regard for the

rights, safety and health of tenants and others lawfully on the premises.

(Adopted 1/95, Amended 1/00)

property shall exercise due diligence and make reasonable efforts to

protect it against reasonably foreseeable contingencies and losses.

(Adopted 1/95)

sellers/landlords of:

the amount(s) of any compensation that will be offered to

subagents, buyer/ tenant agents, and/or brokers acting in

legally recognized non-agency capacities;

2)the fact that buyer/tenant agents or brokers, even if compensated

by listing brokers, or by sellers/landlords may represent the

interests of buyers/tenants; and

3)any potential for listing brokers to act as disclosed dual agents,

e.g. buyer/tenant agents. (Adopted 1/93, Renumbered 1/98,

Amended 1/03)

When entering into buyer/tenant agreements, REALTORS®

must advise potential clients of:

2) the amount of compensation to be paid by the client;

3) the potential for additional or offsetting compensation from

other brokers, from the seller or landlord, or from other

parties; and

4) any potential for the buyer/tenant representative to act as a

disclosed dual agent, e.g. listing broker, subagent,

landlord's agent, etc., and

5) the possibility that sellers or sellers' representatives may not

treat the existence, terms, or conditions of offers as confidential

unless confidentiality is required by law, regulation, or

by any confidentiality agreement between the parties.

(Adopted 1/93, Renumbered 1/98, Amended 1/06)

Fees for preparing appraisals or other valuations shall not be

contingent upon the amount of the appraisal or valuation. (Adopted

1/02)

brokers shall, with the sellers' approval, disclose the existence of

offers on the property. Where disclosure is authorized, REALTORS

listing licensee, another licensee in the listing firm, or by a

cooperating broker. (Adopted 1/03, Amended 1/06)

of pertinent facts relating to the property or the transaction.

defects in the property, to advise on matters outside the scope of their

real estate license, or to disclose facts which are confidential under the

scope of agency or non-agency relationships as defined by state law.

(Amended 1/00)

adverse factors reasonably apparent to someone with expertise in

those areas required by their real estate licensing authority. Article

in other professional or technical disciplines. (Amended 1/96)

(Renumbered as Standard of Practice 1-12 1/98)

(Renumbered as Standard of Practice 1-13 1/98)

in any document, unless it be the naming of an obviously

nominal consideration.

Factors defined as “non-material” by law or regulation or which are

expressly referenced in law or regulation as not being subject to

disclosure are considered not “pertinent” for purposes of Article 2.

(Adopted 1/93)

is not in the client’s best interest. The obligation to cooperate

does not include the obligation to share commissions, fees, or to

otherwise compensate another broker. (Amended 1/95)

landlords, establish the terms and conditions of offers to cooperate.

Unless expressly indicated in offers to cooperate, cooperating

brokers may not assume that the offer of cooperation includes an

2006 Yearbook NAR Code of Ethics and Standards of Practice • 47

offer of compensation. Terms of compensation, if any, shall be

ascertained by cooperating brokers before beginning efforts to

accept the offer of cooperation. (Amended 1/99)

another REALTOR®, timely communicate any change of compensationfor cooperative services to the other REALTOR

Standard of Practice 3-2 does not preclude the listing broker and

cooperating broker from entering into an agreement to change

cooperative compensation. (Adopted 1/94)

to disclose the existence of dual or variable rate commission

arrangements (i.e., listings where one amount of commission is

payable if the listing broker’s firm is the procuring cause of sale/

lease and a different amount of commission is payable if the sale/

lease results through the efforts of the seller/landlord or a cooperating

broker). The listing broker shall, as soon as practical, disclose

the existence of such arrangements to potential cooperating brokers

and shall, in response to inquiries from cooperating brokers,

disclose the differential that would result in a cooperative transaction

or in a sale/lease that results through the efforts of the seller/

landlord. If the cooperating broker is a buyer/tenant representative,

the buyer/tenant representative must disclose such information

to their client before the client makes an offer to purchase or

lease. (Amended 1/02)

It is the obligation of subagents to promptly disclose all pertinent

facts to the principal’s agent prior to as well as after a purchase or

lease agreement is executed. (Amended 1/93)

including offers with unresolved contingencies, to any broker

seeking cooperation. (Adopted 5/86, Amended 1/04)

property under a management or listing agreement, REALTORS

interest is personal or on behalf of a client and, if on behalf of a

client, their representational status. (Amended 1/95)

show or inspect a listed property. (Amended 11/87)

from themselves, any member of their immediate families, their firms

or any member thereof, or any entities in which they have any

ownership interest, any real property without making their true

position known to the owner or the owner’s agent or broker. In selling

property they own, or in which they have any interest, REALTORS®

shall reveal their ownership or interest in writing to the purchaser or

the purchaser’s representative. (Amended 1/00)

For the protection of all parties, the disclosures required by Article

signing of any contract. (Adopted 2/86)

concerning a property or its value where they have a present or

contemplated interest unless such interest is specifically disclosed to

all affected parties.

expenditures made for their client, without the client’s knowledge and

consent.

When recommending real estate products or services (e.g., homeowner’s

insurance, warranty programs, mortgage financing, title insurance,

recommendation is made any financial benefits or fees, other than real

as a direct result of such recommendation. (Amended 1/99)

the use of services of another organization or business entity in which

they have a direct interest without disclosing such interest at the time

of the recommendation or suggestion. (Amended 5/88)

more than one party, even if permitted by law, without disclosure to

clients. (Amended 1/93)

institution, separated from their own funds, monies coming into their

possession in trust for other persons, such as escrows, trust funds, clients’

monies, and other like items.

possible that all agreements related to real estate transactions including,

but not limited to, listing and representation agreements, purchase

contracts, and leases are in writing in clear and understandable language

expressing the specific terms, conditions, obligations and commitments

of the parties. A copy of each agreement shall be furnished to each

party to such agreements upon their signing or initialing. (Amended

1/04)

care to ensure that documents pertaining to the purchase, sale, or lease

of real estate are kept current through the use of written extensions

or amendments. (Amended 1/93)

Duties to the Public

for reasons of race, color, religion, sex, handicap, familial status, or

agreement to discriminate against a person or persons on the basis of race,

color, religion, sex, handicap, familial status, or national origin.

(Amended 1/90)

discriminate against any person or persons on the basis of race, color,

religion, sex, handicap, familial status, or national origin. (Amended

1/00)

not volunteer information regarding the racial, religious or ethnic

composition of any neighborhood nor shall they engage in any

activity which may result in panic selling, however, REALTORS®

may provide other demographic information. (Adopted 1/94,

Amended 1/06)

48 • NAR Code of Ethics and Standards of Practice 2006 Yearbook

When not involved in the sale or lease of a residence, REALTORS®

may provide demographic information related to a property, transaction

or professional assignment to a party if such demographic

with or complete, in a manner consistent with Article 10, a real estate

transaction or a professional assignment and (b) is obtained or derived

from a recognized, reliable, independent, and impartial source. The

source of such information and any additions, deletions, modifications,

interpretations, or other changes shall be disclosed in reasonable

detail. (Adopted 1/94, Renumbered 1/06)

advertisement with respect to selling or renting of a property that

indicates any preference, limitations or discrimination based on race,

color, religion, sex, handicap, familial status, or national origin.

(Adopted 1/94, renumbered 1/05 and 1/06)

As used in Article 10 "real estate employment practices" relates to

employees and independent contractors providing real estate-related

services and the administrative and clerical staff directly supporting

those individuals. (Adopted 1/00, Renumbered 1/05)

shall conform to the standards of practice and competence which are

reasonably expected in the specific real estate disciplines in which they

engage; specifically, residential real estate brokerage, real property

management, commercial and industrial real estate brokerage, real estate

appraisal, real estate counseling, real estate syndication, real estate

auction, and international real estate.

services concerning a type of property or service that is outside their field

of competence unless they engage the assistance of one who is competent

on such types of property or service, or unless the facts are fully disclosed

to the client. Any persons engaged to provide such assistance shall be so

identified to the client and their contribution to the assignment should

be set forth. (Amended 1/95)

other than in pursuit of a listing or to assist a potential purchaser in

formulating a purchase offer, such opinions shall include the following:

1) identification of the subject property

2) date prepared

3) defined value or price

4) limiting conditions, including statements of purpose(s) and

intended user(s)

5) any present or contemplated interest, including the possibility

of representing the seller/landlord or buyers/tenants

6) basis for the opinion, including applicable market data

7) if the opinion is not an appraisal, a statement to that effect

(Amended 1/01)

The obligations of the Code of Ethics in respect of real estate

disciplines other than appraisal shall be interpreted and applied in

accordance with the standards of competence and practice which

clients and the public reasonably require to protect their rights and

interests considering the complexity of the transaction, the availability

subagent, the obligations of a fiduciary. (Adopted 1/95)

involve advice or counsel for a fee (not a commission), such advice shall

be rendered in an objective manner and the fee shall not be contingent

on the substance of the advice or counsel given. If brokerage or

transaction services are to be provided in addition to consultive

services, a separate compensation may be paid with prior agreement

between the client and REALTOR®. (Adopted 1/96)

The competency required by Article 11 relates to services contracted

expressly imposed by the Code of Ethics; and the duties imposed by

law or regulation. (Adopted 1/02)

ensure that their professional status (e.g., broker, appraiser, property

advertising and in other representations provided that all terms

governing availability of the offered product or service are clearly

disclosed at the same time. (Amended 1/97)

even if they expect to receive compensation from a source other than

a benefit from a third party is clearly disclosed at the same time.

(Amended 1/97)

The offering of premiums, prizes, merchandise discounts or other

inducements to list, sell, purchase, or lease is not, in itself, unethical

even if receipt of the benefit is contingent on listing, selling,

advertising or other public or private representations so that any party

offer will have clear, thorough, advance understanding of all the terms

and conditions of the offer. The offering of any inducements to do

business is subject to the limitations and restrictions of state law and

the ethical obligations established by any applicable Standard of

Practice. (Amended 1/95)

without authority. When acting as listing brokers or as subagents,

with the seller/landlord. (Amended 1/93)

or affiliated with them to advertise listed property without disclosing

the name of the firm. (Adopted 11/86)

in which they have an ownership interest, shall disclose their status

(Amended 1/93)

broker or cooperating broker (selling broker) may claim to have “sold”

the property. Prior to closing, a cooperating broker may post a “sold”

sign only with the consent of the listing broker. (Amended 1/96)

practice of law and shall recommend that legal counsel be obtained

when the interest of any party to the transaction requires it.

2006 Yearbook NAR Code of Ethics and Standards of Practice • 49

Article 16 is intended to recognize as unethical two basic types of

solicitations:

First, telephone or personal solicitations of property owners who have

been identified by a real estate sign, multiple listing compilation,

or other information service as having exclusively listed their property

Second, mail or other forms of written solicitations of prospects whose

solicitations are not part of a general mailing but are directed

specifically to property owners identified through compilations of

current listings, “for sale” or “for rent” signs, or other sources of

information required by Article 3 and Multiple Listing Service rules

or cooperation. (Amended 1/04)

client of another broker for the purpose of offering to provide, or

entering into a contract to provide, a different type of real estate service

unrelated to the type of service currently being provided (e.g.,

property management as opposed to brokerage) or from offering the

same type of service for property not subject to other brokers' exclusive

agreements. However, information received through a Multiple

Listing Service or any other offer of cooperation may not be used to

services may be made. (Amended 1/04)

exclusively with another broker. However, if the listing broker, when

nature of such listing; i.e., an exclusive right to sell, an exclusive

agency, open listing, or other form of contractual agreement between

owner to secure such information and may discuss the terms upon

may take a listing to become effective upon expiration of any existing

exclusive listing. (Amended 1/94)

tenants who are subject to exclusive buyer/tenant agreements. However,

expiration date of the exclusive buyer/tenant agreement, the REALTOR

a future buyer/tenant agreement or, alternatively, may enter into a

buyer/tenant agreement to become effective upon the expiration of

any existing exclusive buyer/tenant agreement. (Adopted 1/94,

Amended 1/98)

When REALTORS® are contacted by the client of another REALTOR

indirectly initiated such discussions, they may discuss the terms upon

which they might enter into a future agreement or, alternatively, may

enter into an agreement which becomes effective upon expiration of

any existing exclusive agreement.. (Amended 1/98)

representative or exclusive broker in one or more past transactions does

business. (Amended 1/04)

The fact that an exclusive agreement has been entered into with a

REALTOR® shall not preclude or inhibit any other REALTOR®

If charged with unethical practice or asked to present evidence or to

cooperate in any other way, in any professional standards proceeding or

proper tribunals of the Member Board or affiliated institute, society, or

council in which membership is held and shall take no action to disrupt

or obstruct such processes. (Amended 1/99)

council in which they hold membership with respect to alleged

violations of the Code of Ethics relating to the same transaction or

event. (Amended 1/95)

of the allegations, findings, or decision developed in connection

with an ethics hearing or appeal or in connection with an

arbitration hearing or procedural review. (Amended 1/92)

standards proceedings by instituting or threatening to institute

actions for libel, slander or defamation against any party to a professional

standards proceeding or their witnesses based on the filing of

an arbitration request, an ethics complaint, or testimony given before

any tribunal. (Adopted 11/87, Amended 1/99)

or disciplinary proceedings by filing multiple ethics complaints

based on the same event or transaction. (Adopted 11/88)

Duties to REALTORS®

statements about competitors, their businesses, or their business

practices. (Amended 1/92)

ethics complaints. (Adopted 1/00)

inconsistent with exclusive representation or exclusive brokerage relationship

1/04)

Article 16 is not intended to prohibit aggressive or innovative

business practices which are otherwise ethical and does not prohibit

compensation or other forms of payment or expenses. (Adopted 1/93,

Amended 1/95)

announcements to prospects describing their services and the terms of

their availability even though some recipients may have entered into

agency agreements or other exclusive relationships with another

addressed to all prospects in a given geographical area or in a

given profession, business, club, or organization, or other classification

or group is deemed “general” for purposes of this standard.

(Amended 1/04)

50 • NAR Code of Ethics and Standards of Practice 2006 Yearbook

from entering into a similar agreement after the expiration of the prior

agreement. (Amended 1/98)

an affirmative obligation to make reasonable efforts to determine

whether the prospect is subject to a current, valid exclusive agreement

to provide the same type of real estate service. (Amended 1/04)

disclose that relationship to the seller/landlord’s representative or

broker at first contact and shall provide written confirmation of that

disclosure to the seller/landlord’s representative or broker not later than

execution of a purchase agreement or lease. (Amended 1/04)

or brokers shall disclose that relationship to the seller/landlord

at first contact for that buyer/tenant and shall provide written confirmation

of such disclosure to the seller/landlord not later than execution

of any purchase or lease agreement. (Amended 1/04)

from the seller/landlord at first contact. (Amended 1/98)

or as subagents of listing brokers, shall disclose that relationship to

buyers/tenants as soon as practicable and shall provide written confirmation

of such disclosure to buyers/tenants not later than execution of

any purchase or lease agreement. (Amended 1/04)

All dealings concerning property exclusively listed, or with buyer/

tenants who are subject to an exclusive agreement shall be carried on

with the client’s representative or broker, and not with the client, except

with the consent of the client’s representative or broker or except where

such dealings are initiated by the client.

Before providing substantive services (such as writing a purchase offer

whether they are a party to any exclusive representation agreement.

a prospective transaction to prospects who are parties to

exclusive representation agreements, except with the consent of the

prospects' exclusive representatives or at the direction of prospects.

(Adopted 1/93. Amended 1/04)

negotiate with sellers/landlords, buyers/tenants or others who are not

subject to an exclusive agreement but shall not knowingly obligate

them to pay more than one commission except with their informed

consent. (Amended 1/98)

offer to compensate, directly or indirectly, any of the sales licensees

brokers, shall not use the terms of an offer to purchase/lease to attempt

to modify the listing broker’s offer of compensation to subagents or

buyer/tenant representatives or brokers nor make the submission of an

executed offer to purchase/lease contingent on the listing broker’s

agreement to modify the offer of compensation. (Amended 1/04)

or brokers, shall not attempt to extend a listing broker’s offer

of cooperation and/or compensation to other brokers without the

consent of the listing broker. (Amended 1/04)

brokers through offers to cooperate made through Multiple

Listing Services or through other offers of cooperation to refer

listing brokers' clients to other brokers or to create buyer/tenant

relationships with listing brokers' clients, unless such use is

authorized by listing brokers. (Amended 1/02)

Signs giving notice of property for sale, rent, lease, or exchange

shall not be placed on property without consent of the seller/

landlord. (Amended 1/93)

their current firm, shall not induce clients of their current firm to

cancel exclusive contractual agreements between the client and

establishing agreements with their associated licensees governing

assignability of exclusive agreements. (Adopted 1/98)

In the event of contractual disputes or specific non-contractual

disputes as defined in Standard of Practice 17-4 between REALTORS

the dispute to arbitration in accordance with the regulations of their

Board or Boards rather than litigate the matter.

arbitrate those disputes in accordance with the regulations of their

Board, provided the clients agree to be bound by the decision.

The obligation to participate in arbitration contemplated by this

their firms to arbitrate and be bound by any award. (Amended 1/01)

The filing of litigation and refusal to withdraw from it by

arbitrate. (Adopted 2/86)

circumstances when all parties to the dispute advise the Board in

writing that they choose not to arbitrate before the Board. (Amended

1/93)

transaction, are not obligated to arbitrate disputes with other

(Adopted 1/96)

Specific non-contractual disputes that are subject to arbitration

pursuant to Article 17 are:

1) Where a listing broker has compensated a cooperating broker

and another cooperating broker subsequently claims to be the

procuring cause of the sale or lease. In such cases the complainant

may name the first cooperating broker as respondent and

arbitration may proceed without the listing broker being

named as a respondent. Alternatively, if the complaint is

brought against the listing broker, the listing broker may

name the first cooperating broker as a third-party respondent.

NAR Code of Ethics and Standards of Practice • 51

In either instance the decision of the hearing panel as to

procuring cause shall be conclusive with respect to all current

or subsequent claims of the parties for compensation arising

out of the underlying cooperative transaction. (Adopted 1/

97)

2) Where a buyer or tenant representative is compensated by the

seller or landlord, and not by the listing broker, and the listing

broker, as a result, reduces the commission owed by the seller

or landlord and, subsequent to such actions, another cooperating

broker claims to be the procuring cause of sale or lease.

In such cases the complainant may name the first cooperating

broker as respondent and arbitration may proceed without the

listing broker being named as a respondent. Alternatively, if

the complaint is brought against the listing broker, the listing

broker may name the first cooperating broker as a third-party

respondent. In either instance the decision of the hearing panel

as to procuring cause shall be conclusive with respect to all

current or subsequent claims of the parties for compensation

arising out of the underlying cooperative transaction. (Adopted

1/97)

3) Where a buyer or tenant representative is compensated by the

buyer or tenant and, as a result, the listing broker reduces the

commission owed by the seller or landlord and, subsequent to

such actions, another cooperating broker claims to be the

procuring cause of sale or lease. In such cases the complainant

may name the first cooperating broker as respondent and

arbitration may proceed without the listing broker being

named as a respondent. Alternatively, if the complaint is

brought against the listing broker, the listing broker may

name the first cooperating broker as a third-party respondent.

In either instance the decision of the hearing panel as to

procuring cause shall be conclusive with respect to all current

or subsequent claims of the parties for compensation arising

out of the underlying cooperative transaction. (Adopted 1/

97)

4) Where two or more listing brokers claim entitlement to

compensation pursuant to open listings with a seller or

2006 Yearbook

landlord who agrees to participate in arbitration (or who

requests arbitration) and who agrees to be bound by the

decision. In cases where one of the listing brokers has been

compensated by the seller or landlord, the other listing broker,

as complainant, may name the first listing broker as respondent

and arbitration may proceed between the brokers. (Adopted

1/97)

5) Where a buyer or tenant representative is compensated by the

seller or landlord, and not by the listing broker, and the listing

broker, as a result, reduces the commission owed by the seller

or landlord and, subsequent to such actions, claims to be the

procuring cause of sale or lease. In such cases arbitration shall

be between the listing broker and the buyer or tenant representative

and the amount in dispute is limited to the amount

of the reduction of commission to which the listing broker

agreed. (Adopted 1/05)

Explanatory Notes

The reader should be aware of the following policies which have

been approved by the Board of Directors of the National Association:

In filing a charge of an alleged violation of the Code of Ethics by a

more Articles of the Code. Standards of Practice may be cited in

support of the charge.

The Standards of Practice serve to clarify the ethical obligations

imposed by the various Articles and supplement, and do not

Modifications to existing Standards of Practice and additional new

Standards of Practice are approved from time to time. Readers are

cautioned to ensure that the most recent publications are utilized.