Interpretations of the Code
of Ethics has been developed by the Professional Standards Committee of the
NATIONAL ASSOCIATION OF REALTORS® to help REALTORS® understand the
ethical obligations created by the Code of Ethics, and as a reference work
for Grievance Committees, ethics and arbitration Hearing Panels, and Boards
of Directors.
Interpretations of the Code of Ethics presents specific situations involving
charges of alleged unethical conduct by REALTORS®, which are reviewed
by a peer panel of Board Members and in which decisions as to ethical conduct
are reached.
Each case provides the Hearing Panel’s decision based on the facts and
the rationale for the decision, but does not specify a specific sanction or
discipline to be imposed. There are two reasons for this:
1. Any sanction imposed must always fit the offense
and must involve every consideration of justice, equity, and propriety.
2. A Hearing Panel may base its recommendation for discipline on a Member’s
past record of ethics violations.
The Code of Ethics and Arbitration
Manual establishes that a Member Board may utilize a wide range of sanctions
for ethics violations. These sanctions include:
- Letter of
Warning with copy to be placed in Member’s file;
- Letter of
Reprimand with copy to be placed in Member’s file;
- Requirement
that Member attend the ethics portion of the Board Indoctrination Course
or other appropriate course or seminar specified by the Hearing Panel, which
the respondent could reasonably attend taking into consideration cost, location,
and duration;
- $500 Administrative
Hearing Fee
- Appropriate
and reasonable fine not to exceed $5,000;
- Member placed
on probation for a stated period of time not less than thirty (30) days
but no more than one (1) year;
- Membership
of individual suspended for a stated period not to exceed one (1) year,
with automatic reinstatement of membership in good standing at the end of
the specified period of suspension (decision should be written clearly articulating
all intended consequences, including denial of MLS participatory or access
privileges).
