Realtor

A realtor is a real estate professional who is a member of the National Association of Realtors (NAR). The NAR is the professional body in the United States of America. Realtors include estate agents, real estate brokers, property managers, counsellors and other professionals in the real estate niche. There are over a million registered realtors today, and the name of the group is a registered trademark.

Realtors are not only expected to be experts in their niche; they are under obligation to abide by the code of ethics provided by the NAR. The code of ethics is geared towards ensuring transparency in the service to the general public and other professionals. It as first drafted in 1913.

The National Association of Realtors

The National Association of Realtors was founded in May 1908, in Chicago, Illinois. It was initially known as the National Association of Real Estate Exchanges. The current name was adopted in 1972. From inception until now, the body welcomes members from all the areas of the immovable property industry that requires a licence to practice. Members must identify with at least one of the 1,600 local realtor associations across the country. The NAR as a body is highly significant as it is a member of the Real Estate Roundtable which is an influential lobby group in the USA.

What Is the Difference Between a Realtor and a Real Estate Agent?

Realtors and real estate agents are not the same, even though the terms are used interchangeably by the general public. There are real differences. A realtor and an estate agent can both sell property but NAR membership for the former is the primary distinguishing factor. The fact a realtor is expected to live up to the NAR code of ethics makes them a less risky proposition for customers. The real estate agent can join the NAR and become a realtor, but until then, the differences abound. There are 17 major differences, which are the 17 components of the Code of Ethics that realtors have to abide by. The rules are enforced by the local real estate board. The Standards of Practice for a Realtor is much more binding and restrictive than the state provided guidelines for agents that are merely licensed by the state. Presently, there is no proof that all realtors will demonstrate a more high-standing morality than ordinary real estate agents who are not members of the NAR. However, consumers are better protected when they are dealing with professionals that are in a strict, self-regulating body.

What Is the Difference Between a Broker and a Realtor?

As is the case above, the main difference between a broker and a realtor, is the membership of the NAR. A realtor not only has to abide by rules set by the local real estate board but also abide by the NAR’s Code of Ethics.

How To Become a Realtor

To become a realtor, you need to register with your local association of realtors. This registration automatically makes you a member at the state and national level. There are over 1,600 local associations or boards and 54 state and territorial associations of realtors. To find local associations of realtors to join, you need to browse the list of local and state associations on the official NAR website or search local directories. Alternatively, sending your personal details to the NAR through email will return a list of local associations in your area. When you have found the relevant association to join, you can contact them regarding membership.

What are the 17 Codes of Ethics Which Realtors Are Bound By?

1. Realtors are expected to treat all parties honestly, putting the interest of buying or selling clients ahead of theirs.
2. They must not misrepresent, exaggerate of hide facts and are under obligation to investigate and disclose facts where possible.
3. They must work with other agents or brokers when it is in the best interest of the client to do so.
4. They are expected to reveal any relationship with a buyer or seller in a property transaction and must also reveal if they are a principal in a real estate transaction.
5. They cannot offer their services in a deal if they have an interest of any kind in the transaction unless all the parties involved have been made aware of this interest.
6. They cannot collect commissions without notifying the seller and cannot accept payments or fees from a third-party without approval from the seller.
7. They cannot collect fees from different parties in a transaction without consent from both parties.
8. They cannot combine the funds of a client with the funds of an agent or vice-versa.
9. Must ensure that all documents that are an important part of a transaction are straightforward to understand for all parties that will be a signatory to the transaction.
10. They cannot discriminate for any reasons including colour, religion, handicap, familial status, sex or nationality.
11. They must not provide services that they are unqualified for.
12. They must not be involved in false advertisement.
13. They must not practice law unless they are fully qualified.
14. If charges are raised against them, they must be willing to provide all evidence requested and co-operate with all relevant authorities.
15. They must not speak negatively against the competition or file frivolous complaints against them.
16. They cannot target a client that is already in a contractual relationship with another realtor.
17. They must be willing to settle disputes through arbitration instead of going to the judicial system with such issues.