Anne Meczywor

Real estate markets go up and down. That is a universally accepted principle.  

Since October 2012, we have been in a sellers’ market with historically low numbers of homes for sale and prices at all-time highs. We were in a buyers’ market for several years prior as a result of the cautionary tale learned from the bursting of the housing market bubble. We saw lower prices and a better selection of homes. 

Both of these market conditions put real estate professionals and consumers in challenging situations. Challenges have a way of bringing out the best, and sometimes the worst, in people especially in highly competitive markets. 

The Realtor Code of Ethics is a major tool in guiding us through these challenges. The Code of Ethics is our touchstone, our standard and our guide. The National Association of Realtors recently began a national ad campaign emphasizing our commitment to the Code. The Code of Ethics is one of the major differences that separate Realtors from real estate agents. It is 106 years old and has stood the test of time well.  

Code Keeps Housing Market Honest 

The Realtor Code of Ethics was one of the first codifications of ethical duties adopted by any business group and was written before license law and before most other regulations governing real estate existed. It was adopted by NAR in 1913. The Code of Ethics was meant to evolve, and it has done so to better serve consumers and the industry.  

Today the Code of Ethics includes 17 articles, divided among three sections:  

• Duties to clients and customers  
• Duties to the public 
• Duties to Realtors 

Every real estate agent who becomes a Realtor is taught the Code of Ethics, is required to complete Code of Ethics training every three years and is required to abide by it. Failure to complete the training results in suspension of membership. Violations can also result in suspension of membership or other penalties.  

In today’s sellers’ market, where it is highly competitive to acquire listings or where buyers are competing against one another for properties, the Code of Ethics helps keep the marketplace professional and above–board.  

For example, a client who has their home listed with Realtor A is at a party and starts talking with some other guests about the difficulty they are having selling their home. One of the people in that group also happens to be Realtor B. The Code of Ethics prohibits Realtor B from doing anything more than asking that client about when the existing agreement expires.  

In this example, if there were no Code of Ethics, Realtor B at the party, under Massachusetts law, would only be prohibited from defaming Realtor A or urging the seller to break the existing listing agreement with Realtor A. Realtor B could, under state law, could actively market him/herself to the client at the party. But by the Code, that is not allowed because it is not regarded as professional or respectful of the existing client-Realtor relationship.  

It might seem like a small issue, but these types of situations can happen – and often do. The Code of Ethics helps ensure that the pressures of the market do not contribute to the erosion of professionalism in the business.  

Ways for Realtors to Go Above and Beyond 

We’ve all experienced disruption in the way we live our lives, and we know in a fast-paced business environment change is expected. How should Realtors respond to ensure the Code of Ethics is able to withstand the disruption and remain as relevant today and going forward as it has been for over 100 years? One way is NAR’s Commitment to Excellence program.  

Launched in 2018, the Commitment to Excellence or C2EX program was designed for Realtors who want to go beyond what is required and increase their professionalism and commitment to conducting business at the highest standard. This program is not a “one-and-done,” designation or a course, but rather an ongoing self-assessment tool.  

A Realtor who is actively engaged in the program assesses their proficiency in 10 separate elements of professionalism, ranging from customer service to the use of technology. Based on the results, the platform will generate customized learning paths, recommend experiences, and provide tools and resources to increase a Realtors’ knowledge skillsets. It is something that will evolve by design and Realtors will use again and again.  

The Realtor Code of Ethics is a differentiator that sets Realtors apart from real estate agents. However, it’s not just good enough to have a Code of Ethics. We must live the Code. The Code of Ethics and our Commitment to Excellence will ensure professionalism remains central to what we do. It is, after all, who we “R.” 

Anne Meczywor is the 2019 president of the Massachusetts Association of Realtors and a broker/associate with Roberts & Assoc. Realty Inc., in Lenox.