What is a Real Estate Professional under Article 15

Real estate professionals play a crucial role in the real estate industry. They provide valuable guidance and assistance to buyers, sellers, and investors, helping them navigate the complexities of real estate transactions. The National Association of REALTORS® (NAR) has established a Code of Ethics that governs the conduct and responsibilities of real estate professionals. Within this Code, Article 15 focuses specifically on defining the roles and responsibilities of real estate professionals. In this article, we will explore what it means to be a real estate professional under Article 15 and the various types of professionals that fall under this definition. We will also discuss the responsibilities and ethics associated with being a real estate professional, as well as the options for filing an ethics complaint or seeking resolution through the ombudsman program provided by local associations.

Understanding the Definition

Under Article 15 of the Code of Ethics, a real estate professional includes individuals engaged in various real estate disciplines specified in Article 11. This means that professionals involved in activities such as real estate brokerage, property management, real estate appraisal, real estate counseling, real estate syndication, and real estate auction are all considered real estate professionals under Article 15.

Real estate appraisers, for example, are individuals who provide an unbiased estimate of the value of a property. They play a critical role in determining the fair market value of a property, which is crucial for buyers, sellers, lenders, and insurance companies. Appraisers conduct thorough research and analysis to determine the value of a property based on various factors such as location, condition, comparable sales, and market trends. Their expertise ensures that all parties involved in a real estate transaction have an accurate understanding of the value of the property.

Real estate brokers are another type of professional covered under Article 15. They are licensed professionals who facilitate the buying and selling of real estate properties. Brokers act as intermediaries between buyers and sellers, helping them negotiate the best deal and ensure a smooth transaction process. They use their knowledge of the real estate market, marketing skills, and negotiation abilities to assist clients in achieving their real estate goals. Brokers are responsible for ensuring that all parties are represented ethically and that transactions are conducted in accordance with the law and industry standards.

Responsibilities and Ethics

As real estate professionals, individuals covered under Article 15 have a set of responsibilities and ethical obligations they must adhere to. The Code of Ethics established by NAR provides a framework for these responsibilities and serves as a guideline for conducting business in an ethical and professional manner.

Honesty and integrity are essential principles that real estate professionals must uphold. They are obligated to provide accurate and truthful information to their clients and customers. This includes disclosing any known material facts about a property that could affect a buyer’s or seller’s decision. Real estate professionals should not mislead or deceive their clients or engage in any fraudulent activities. They should always act in the best interest of their clients and prioritize their clients’ needs and objectives.

Confidentiality is another important aspect of the professional conduct of real estate professionals. They are obligated to protect confidential information provided by their clients, such as financial information or personal details. Real estate professionals should only disclose information with the consent of their clients or when required by law.

Competence is a crucial characteristic of a real estate professional. They must possess the necessary knowledge and skills to provide the level of service expected by their clients. This includes staying up to date with market trends, regulations, and industry practices. Real estate professionals should not provide services outside their area of competence without seeking appropriate assistance or expertise.

Professionalism is expected of all real estate professionals. They should conduct themselves in a manner that reflects positively on the profession and the industry. This includes treating all parties involved in a transaction with respect and courtesy, avoiding any discriminatory practices, and maintaining a high level of professionalism in their communication and conduct.

Filing an Ethics Complaint

If you believe that a real estate professional has violated the Code of Ethics, you have the option of filing an ethics complaint. The process for filing a complaint may vary depending on the local association, but generally, it involves submitting a written complaint form along with any supporting documentation. The complaint should clearly outline the alleged violation(s) and provide any relevant evidence or documentation to support your claim.

It’s important to note that the filing of an ethics complaint must be done within 180 days of the time that the alleged violation should have been known, or within 180 days after the conclusion of the transaction, whichever is later. After the complaint is filed, it will be reviewed by the local association’s Grievance Committee to determine if it meets the criteria for further review.

If the complaint is deemed to have merit, it will proceed to a hearing before the association’s Professional Standards Committee. The committee will review the evidence and testimony presented by both parties and make a determination regarding the alleged violation(s). If the real estate professional is found to have violated the Code of Ethics, disciplinary action may be taken, ranging from a reprimand to fines or even expulsion from the association.

Seeking Resolution through the Ombudsman Program

In addition to the option of filing an ethics complaint, NAR offers an alternative dispute resolution service known as the Ombudsman Program. This program provides a way for consumers and REALTORS® to seek resolution for minor disputes or misunderstandings in a less formal and more collaborative manner.

The Ombudsman Program is designed to address and resolve complaints or concerns that do not rise to the level of a formal ethics complaint. It involves a neutral third-party ombudsman who assists in facilitating communication and understanding between the parties involved. The ombudsman acts as a mediator, helping to identify the underlying issues and find mutually agreeable solutions.

The Ombudsman Program is a voluntary and confidential process that allows both consumers and REALTORS® to seek a resolution without going through the formal ethics complaint process. It provides a more informal and less adversarial way to address concerns and maintain positive working relationships within the real estate industry.

Being a real estate professional carries significant responsibilities and ethical obligations. Article 15 of the Code of Ethics defines the roles and responsibilities of various real estate professionals, including brokers and appraisers. Upholding principles such as honesty, integrity, confidentiality, and professionalism is crucial for maintaining a high level of service and trust within the industry.

If you believe that a real estate professional has violated the Code of Ethics, you have the option of filing an ethics complaint within 180 days of the alleged violation. Alternatively, the Ombudsman Program provides a more collaborative and informal way to seek resolution for minor disputes or concerns.

By adhering to the principles outlined in Article 15 and embracing ethical practices, real estate professionals can build trust with their clients, promote professionalism within the industry, and contribute to a thriving and ethical real estate market.

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