StraightTalk is a great place to start learning how living the code can help improve your business, but it’s no legal substitute for the Code of Ethics.
Thoughts on Article 6
If you are getting paid, be sure your client knows
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent. You can’t get paid unless your client knows you are getting paid.
When you recommend a real estate product or service (homeowner’s insurance, warranty program, mortgage financing, that kind of thing), you have to tell your client if you (or your firm) are getting paid in any way for your recommendation.
Standard of Practice 6-1
NAR amended this article to say that you can’t recommend clients use the services of any company that you might own or have an interest in, unless you disclose your position first. For example, don’t send your clients to a title search company that you own without telling them you own it. Most people won’t object, if you are up front and honest. It’s when they feel like they are being deceived that people get bent out of shape.
Next: Never double dip without consent
Terms to Know:
Before we begin, there are several terms that appear in the Code of Ethics that could use a little clarification:
Client is anyone that you or your firm has a formal agreement to work with. It could be an agency relationship or you could be providing a non-contracted service.
Customer is a party to a real estate transaction who receives information, services or some other benefit from you, but doesn’t have a contract with you or your firm.
Prospect is a buyer, seller, tenant or landlord with whom you or your firm has no contract. An agent is anyone with a real estate license (though not necessarily a REALTOR®) acting in an agency relationship as defined by Virginia law.
Broker is someone with a real estate license (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.
REALTOR® is someone who has earned his/her real estate license and also earned the right to use the title. REALTORS® serve many roles in different real estate transactions. For our purposes, we mean the term to be all inclusive, whether the REALTOR® represents a buyer, seller, tenant or landlord. Whether they provide contracted services or provide a service without a contract.