The Difference between a REALTOR® and a Real Estate Broker, Agent, or Salesperson.
People often use the terms REALTOR® and real estate agent synonymously, but there is in reality a significant difference between a REALTOR® and a real estate agent.
A real estate agent has been licensed by the state regulating body in their state of business practice (in our case the New Mexico Real Estate Commission) to represent the public in their interest of buying, selling (and sometimes managing) real estate.
A REALTOR® is licensed a such AND IS ALSO a member of the National Association of REALTORS® (NAR), a completely independent body from the local Real Estate Commission. In order to become a REALTOR® and member of the NAR, a real estate professional must undergo training and sometimes testing, just like with any other professional designation (such as Ecobroker, Certified Negotiation Expert, Certified Residential Specialist). A REALTOR® and member of the NAR is trained in, and has agreed to adhere to, the REALTOR® Code of Ethics.
But what does this mean to YOU and your bottom line?
First of all, the REALTOR® Code of Ethics. is not just a bunch of rules that agents swear to uphold and adhere to. This policy is strictly enforced by the NAR. The Code contains 17 Articles and various underlying Standards of Practice. These Standards are much more restrictive and confining as to conduct than those governing agents who simply hold a real estate license, and as such, a REALTOR® is beholden to a much higher standard of service, professionalism and ethic than your average real estate professional.
While there is no evidence nor guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, a REALTOR® undertakes regular training in the REALTOR® Code of Ethics (including case studies and sometimes testing) to keep the topics fresh and relevant to the industry, and the designation current. It is more than just a word on a business card. It is an attempt by the real estate industry, and the individuals who pursue the REALTOR®designation, to regulate this immeasurable benefit, and as such, deserves recognition.
Here are 17 things that a REALTOR® promises to do that non-affiliates do not:
#1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.
#2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.
#3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.
#4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
#5) Shall not provide professional services in a transction where the agent has a present or contemplated interest without disclosing that interest.
#6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.
#7) Shall refuse fees from more than one party without all parties’ informed consent.
#8) Shall not co-mingle client funds with their own.
#9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
#10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.
#11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
#12) Must engage in truth in advertising.
#13) Shall not practice law unless they are a lawyer.
#14) Shall cooperate if charges are brought against them and present all evidence requested.
#15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.
#16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.
#17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.
Wouldn’t you rather have an real estate professional who incorporates these standards into their business practice representing YOUR interests?
