Why the Code of Ethics is Important
Only REALTORS® pledge to abide by the Association’s Code of Ethics and only REALTORS® are held accountable for their ethical behavior.
Some of the basic principles of the Code of Ethics include:
- Protect and promote the client’s interests, but be honest with all parties.
- Avoid exaggeration, misrepresentation, and concealment of pertinent facts. Do not reveal facts that are confidential under the scope of your agency relationship.
- Disclose present or contemplated interest in any property to all parties.
- Avoid side deals without your client’s confirmed consent.
- Accept compensation from only one party, except with full disclosure and informed consent.
- Keep the funds of clients and customers in escrow.
- Assure, whenever possible, that transactional details are in writing.
- Provide equal service to all clients and customers.
- Be knowledgeable and competent in the fields of practice in which you ordinarily engage. Obtain assistance or disclose lack of experience if necessary.
- Do not engage in the unauthorized practice of law.
Ethics Complaint Information
The Code of Ethics is enforced by a local board of REALTORS®.
To file an ethics complaint please fill out the following ethics complaint form and send it to the Quad City Area REALTOR® Association at 1900 State Street Bettendorf, IA 52722 c/o Sharon Smith.
The association does not offer legal assistance, please contact your private attorney for those matters.
License Law Violations
- In addition to filing an Ethics complaint with the local REALTOR® Association, the public can file a complaint with the Iowa Real Estate Commission (IREC) or Illinois Department of Professional Regulations (IDFPR). The IREC and IDFPR are the state agencies that issues real estate licenses and are charged with overseeing the state’s real estate license law.
- Information for filing a complaint with the Iowa Real Estate Commission
- Information for filing a complaint with the Illinois Department of Professional Regulations
Code of Ethics Purpose
The Code of ethics is based on the concepts of “service to the public,” and a “commitment to professionalism.” These central concepts of public protection are the foundations upon which the Articles of the Code stand.
The NATIONAL ASSOCIATION OF REALTORS® was one of the first business groups to adopt a code of ethics. The first Code included “duties to clients” and “duties to other brokers.” Later, when real estate license laws were established, many of these laws were based on the standards set in the REALTOR® Code of Ethics.
To this day, many judicial decisions cite the REALTOR® Code of Ethics as the recognized standard of conduct in the real estate industry. Courts have applied the standards of conduct embodied in the Code of Ethics even to real estate licensees who are not REALTORS®.
Code of Ethics Centennial: 1913 – 2013
In 2013, the REALTOR® family celebrated the centennial of the Code of Ethics, and provides an opportunity for REALTORS® to reaffirm their commitment to the honor and integrity the Code demands.