Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests 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 which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients, customers, and the public, and each other, REALTORS® continuously 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 profession. REALTORS® having direct personal knowledge of conduct 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 the attention of the appropriate Board or Association of REALTORS®.

Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, REALTORS® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where REALTORS® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.

The term REALTOR® has come to connote competency, fairness, and 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.

In the interpretation of this obligation, REALTORS® can take no safer 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 so to them."

Accepting this standard as their own, REALTORS® pledge to observe its spirit in all of their activities and to conduct their business in accordance with the tenets set forth in the Code of Ethics and Standards of Practice.

Note: A complete copy of the Code of Ethics can be located on NAR's Website at http:/www.realtor.org/mempolweb.nsf/

Effective January 1, 2001 through December 31, 2004, and for successive four (4) year periods thereafter, REALTORS® are required to complete quadrennial ethics training of not less than two (2) hours and thirty (30) minutes of instructional time. REALTORS® completing such training during any four (4) year cycle shall not be required to complete additional ethics training in respect of this requirement as a requirement of membership in any other Board or Association.

Failure to complete the required periodic ethics training shall be considered a violation of a membership duty for which REALTOR® membership shall be suspended until such time as the required training is completed.

Every Board and Association is required to provide access to necessary ethics training program.

NOTE:
To file a complaint, contact the local Board/Association where the REALTOR® holds membership for complaint forms, procedures and a copy of the Code of Ethics.

Article 17 of the Code of Ethics
"In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between REALTORS® (principals) associated with different firms, arising out of their relationship as REALTORS®, the REALTORS® shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter.

In the event clients of REALTORS® wish to arbitrate contractual disputes arising out of real estate transactions, REALTORS® shall 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 Article includes the obligation of REALTORS® (principals) to cause their firms to arbitrate and be bound by any award." (Amended 1/01)

NOTE:
Contact your local Board/Association to obtain forms, procedures, etc. to file a Request for Arbitration.

Postponement of hearing
Postponement may be granted if there are extenuating circumstances. Requests for postponement must be made in writing. Permission can be given by the Chairperson. All parties shall be advised of the date of the rescheduled hearing.

Recording the hearing
The Board shall, and any party (may/may not), at the party's expense, have a court reporter present or may tape record the proceeding and, if transcribed, shall present the transcript to the Secretary. If the Board utilizes a court reporter in lieu of tape recording, the parties may not be prohibited from making their own tape recording.

Method and objective of procedure
The Hearing Panel shall not be bound by rules of evidence applicable in courts of law, but shall afford all parties a full opportunity to be heard, present witnesses, and offer evidence, subject to its judgment as to relevance.

Due process procedure

The hearing procedures will be:

1. Opening statement by Chairperson - Cite authority to hear case and explain reason for hearing.
2. The complaint will be read into the record or the parties may stipulate to its placement in the record. The members of the Hearing Panel in an arbitration hearing will be sworn by a Notary Public. (This is not necessary in an ethics hearing.)
3. The testimony of all parties and witnesses will be sworn or affirmed. The Chairman may excuse a witness from the hearing except while testifying, if requested to do so by a party.
4. The parties will be given an opportunity to present evidence and testimony on their behalf and they may call witnesses.
5. The parties and their legal counsel will be afforded an opportunity to examine and cross-examine all witnesses and parties.
6. The panel members may ask questions at any time during the proceedings.
7. The Chairperson may exclude any question ruled to be irrelevant or argumentative.
8. Each side may make a closing statement. The complainant will make the first closing statement and the respondent will make the final closing statement.
9. Adjournment of hearing.
10. The Hearing Panel will go into executive session to decide the case.

Award in arbitration hearing
The decision of the Hearing Panel in an arbitration proceeding shall be reduced in writing (setting for the only the amount of the award by the panel) and signed by the arbitrators or the majority of them, and a copy shall be furnished to each of the parties to the arbitration. A copy also shall be filed with the Secretary of the Board.

Findings in ethics hearing
The finding and recommendation for discipline, if any, shall be reduced to writing by the Hearing Panel and submitted to the Board of Directors in accordance with the procedure of Part Four, Section 23 of the Code of Ethics & Arbitration Manual.

Use of legal counsel
A party may be represented in any hearing by legal counsel or by a REALTOR® of their choosing (or both). However, no party may refuse to directly respond to requests for information or questions addressed to him by members of the Panel except on grounds of self-incrimination, or on other grounds deemed by the Panel to be appropriate. In this connection, the Panel need not accept the statements of counsel as being the statements of his client if the Panel desires direct testimony. Parties shall be held responsible for the conduct of their counsel. Any effort by counsel to harass, intimidate, coerce, or confuse the panel members or any party to the proceedings, or any action by counsel which is viewed by the panel as disruptive of the proceedings, shall not be tolerated by the panel. Counsel may be excluded on the ground of gross incompetence, physical incapacity or contumacious conduct. For purposes of this paragraph, "contumacious conduct" shall mean any willful act, omission, or statement which actually obstructs the proceedings by impairing the authority or impeding the functioning of the panel.

Parties are required to give written notice of intention to have counsel present fifteen (15) days before the hearing to the Board and the other party, including legal counsel's name, address and phone number. Failure to provide this notice will not invalidate the right to legal representation, however, upon the request of any other party, a continuance of the hearing may be granted if the Hearing Panel determines that the rights of any other party require representation by legal counsel.

Witnesses and exhibits (evidence)
The complainant must provide a list of witnesses he/she intends to call at the hearing and copies of exhibits to the Board/Association and to the other party not less than fifteen (15) days prior to the hearing.

The respondent must provide a list of witnesses he/she intends to call at the hearing and copies of exhibits to the Board/Association and to the other party not less than seven (7) days prior to the hearing.

Each party shall arrange for his/her witnesses to be present at the time and place designated for the hearing.

Failure to provide a list of witnesses and copies of exhibits within the time specified will constitute a waiver of the right to call those witnesses or use exhibits at the hearing, unless the Chairperson agrees to allow their testimony or use of exhibits.

Mediation is a service provided by every Board/Association of REALTORS®. Unlike arbitration, in which the parties present their cases to a panel of arbitrators whose decision is final and binding, mediation brings the disputing parties together in an atmosphere conducive to dialogue and conciliation, encouraging them to work together to reach a mutually acceptable resolution. Experience has shown that 80% or more of the disputes that otherwise would be arbitrated can be resolved faster and more efficiently through mediation. This is a significant savings in time and expense for both the parties and for Boards and Associations. Mediation can also be a positive experience for those who participate because, rather than a "winner" and a "loser" being determined by a panel of arbitrators, in mediation the parties work together, guided by a mediator, to fashion their own solution. Mediation is frequently a "win-win" situation for everyone.

Although no party to an arbitrable matter can be required to submit to mediation and mediation cannot and is not intended to be a substitute for the arbitration procedures, mediation can be a useful tool in resolving the conflicts that arise. Mediation can resolve disputes, promote amicable resolutions and reduce the number of cases requiring the more formal and complex arbitration procedures.

It must be understood by all parties that participation in mediation procedures is entirely voluntary. The parties are offered the opportunity and encouraged to participate in the mediation process in good faith and, further, encouraged to abide by the determination. The parties to mediation should be aware that they may withdraw from the process at any point prior to reaching an agreement. Any offers of settlement that were not accepted or any suggested resolution proposed by the Mediation Officer that was not accepted will not be introduced as evidence nor considered in any manner should the matter require arbitration by the Board/Association Professional Standards Committee. However, if the parties agree to a settlement of the dispute and the settlement has been reduced to writing and has been signed by all of the parties, the matter is deemed resolved and cannot be the subject of a subsequent arbitration hearing. In the event either of the parties later fails to abide by the terms of the settlement, the matter may not be arbitrated; instead, the other party will be encouraged to have the settlement agreement judicially enforced by a court of competent jurisdiction.

If either of the parties rejects the proposed resolution, the mediation procedure will be deemed concluded and the matter will proceed to arbitration.

The fact that at times mediation does not produce the desired result does not diminish its value to REALTORS® and to Boards/Associations. There will be instances when REALTORS® mediate in good faith but, for one reason or another, are simply unable to reach a joint agreement or accept the solution proposed by the mediator. In such cases, the alternative is a decision imposed on the parties by a panel of arbitrators after an arbitration hearing. While this may be the only answer, a mutually-fashioned, mutually agreed upon solution to disagreements between REALTORS® is the preferred outcome.

The best way to avoid arbitration is to minimize any possibility that disagreements or disputes will arise. While it is impossible to avoid disagreements under all circumstances, certain "common sense" steps can be taken by listing and cooperating brokers to ensure that cooperative transactions proceed smoothly.

Listing Brokers

• When taking a listing, ask whether the property was previously listed. Is it currently listed?
• If the property was previously listed, is there a "broker protection clause" in effect? Are there certain named prospects reserved? Does the "broker protection" terminate if the property is relisted?
• Ensure that cooperative compensation for your listings is accurately published in MLS.
• If your listing is not in MLS, be sure that potential cooperating brokers understand your compensation offer prior to commencing their cooperative efforts.
• Communicate changes in compensation offers promptly.
• Be sure that the disposition of forfeited earnest money is clearly addressed in listing contracts.
• Remember that MLS rules may provide that cooperating brokers, after making reasonable efforts to contact listing brokers, can deal directly with sellers unless direct contact has been expressly prohibited by the listing broker.
• Be sure that associates who provide information about your listings are properly prepared/informed.
• Present offers promptly.
• Communicate counteroffers promptly.
• Allow cooperating brokers to be present when offer is presented.
• Be sure that cooperating brokers are informed if the seller refuses to permit them to be present at the presentation of an offer.
• During open houses, have a sign-in roster for buyers and cooperating brokers.
• During open houses, ask buyers "Are you represented?" • Are you working with another broker (firm)?"
• Consider mediation.
• Return telephone calls promptly.
• The fact that a purchaser may have seen a property at an open house does not, in and of itself, determine procuring cause.
• Keep accurate written, contemporaneous records, notes and documentation, including all appointments, showings, meetings, and conversations.
• After an offer is accepted, keep the parties informed as the transaction moves to closing.

Cooperating Brokers

• Before entering into a buyer representation agreement, determine whether the buyer was subject to a prior agreement. Is the buyer currently represented? Is there any residual obligation for the buyer to compensate another broker?
• Prequalify purchasers.
• Realize that "blanket consent" to show other brokers' listings does not exist unless expressly granted by the listing broker.
• When making arrangements to show property listed with other brokers, call the listing broker to make an appointment. If possible, accompany the buyer to the showing. If unable to accompany the buyer to the showing, be sure the listing broker realizes that the buyer is represented.
• If there is any question, use reasonable efforts to determine whether a property is or was listed.
• Ask whether the buyer has been previously introduced to a property. By whom? When?
• Be sure the listing broker is informed if the buyer refuses to permit the listing broker to be present at the presentation of a counteroffer.
• Allow listing brokers to be present when counter-offers are presented.
• Communicate offers promptly.
• Present counteroffers promptly.
• Consider mediation.
• Return telephone calls promptly.
• If a listing is not in MLS, verify the terms of compensation, if any, that are being offered by the listing broker prior to commencing your cooperative efforts.
• Keep accurate written, contemporaneous records, notes and documentation, including all appointments, showings, meetings and conversations.
• After an offer is accepted, keep the parties informed as the transaction moves to closing.
• Remember that the existence of an established agency relationship does not, by itself, determine procuring cause.

While the Code of Ethics and Standards of Practice of the National Association establishes objective, enforceable ethical standards governing the professional conduct of REALTORS®, it does not address issues of courtesy or etiquette. Based on input from many sources, the Professional Conduct Working Group of the Professional Standards Committee developed the following list of professional courtesies for use by REALTORS® on a voluntary basis. This list is not all-inclusive and may be supplemented by local custom and practice.

2005 National Association of REALTORS® and Michigan Association of REALTORS®
Pathways to Professionalism
These professional courtesies are intended to be used by REALTORS® on a voluntary basis, and cannot form the basis for a professional standards complaint.

Respect for the Public

• Follow the “Golden Rule” – Do unto others as you would have them do unto you.
• Respond promptly to inquiries and requests for information.
• Schedule appointments as far in advance as possible.
• Call if you are delayed or must cancel an appointment or showing.
• If a prospective buyer decides not to view an occupied home, promptly explain the situation to the listing broker or the occupant.
• Communicate with all parties in a timely fashion.
• When entering a property, ensure that unexpected situations, such as pets, are handled appropriately.
• Leave your business card if not prohibited by local rules.
• Never criticize property in the presence of the occupant.
• Inform occupants that you are leaving after showings.
• When showing an occupied home, always ring the doorbell or knock – and announce yourself loudly – before entering. Knock and announce yourself loudly before entering any closed room.
• Present a professional appearance at all times; dress appropriately and drive a clean car.
• If occupants are home during showings, ask their permission before using the telephone or bathroom.
• Encourage the clients of other brokers to direct questions to their agent or representative.
• Communicate clearly; do not use jargon or slang that may not be not readily understood.
• Be aware of and respect cultural differences.
• Show courtesy and respect to everyone.
• Be aware of – and meet – all deadlines.
• Promise only what you can deliver – and keep your promises.
• Identify your REALTOR® and your professional status in contacts with the public.
• Do not tell people what you think – tell them what you know.

Respect for Property

• Be responsible for everyone you allow to enter listed property.
• Never allow buyers to enter listed property unaccompanied.
• When showing property, keep all members of the group together.
• Never allow unaccompanied access to property without permission.
• Enter property only with permission even if you have a lockbox key or combination.
• When the occupant is absent, leave the property as you found it (lights, heating, cooling, drapes, etc.) If you think something is amiss (e.g., vandalism) contact the listing broker immediately.
• Be considerate of the seller’s property. Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave the house as you found it unless instructed otherwise.
• Use sidewalks; if weather is bad, take off shoes and boots inside property.

Respect for Peers

• Identify your REALTOR® and professional status in all contacts with other REALTORS®.
• Respond to other agents’ calls, faxes, and e-mails promptly and courteously.
• Be aware that large electronic files with attachments or lengthy faxes may be a burden on recipients.
• Notify the listing broker if there appears to be inaccurate information on the listing.
• Share important information about a property, including the presence of pets; security systems; and whether sellers will be present during the showing.
• Show courtesy, trust, and respect to other real estate professionals.
• Avoid the inappropriate use of endearments or other denigrating language.
• Do not prospect at other REALTORS® open houses or similar events.
• Return keys promptly.
• Carefully replace keys in the lockbox after showings.
• To be successful in the business, mutual respect is essential.
• Real estate is a reputation business. What you do today may affect your reputation – and business – for years to come.