Real Estate Ethical Dilemmas Essay

The Most Common Ethical Dilemmas in Real Estate
The National Association of Realtors ® Code of Ethics and Standards of Practice, is written for Realtors who “pledge themselves to protect and promote the interest of their client” (NAR, Governing Documents, 2016). The most recent copy of the Code of Ethics, effective January 1, 2016 is broken down into 17 articles with multiple subsections. Each subsection details the Realtors duties to customers and clients, to ensure all parties are treated honestly. (NAR, Governing Documents, 2016) The National Association of Realtors requires all members to complete code of ethics training every four years. (NAR, Policy, 2016)
Following are the five most common ethical dilemmas in real estate.
1. Should …show more content…
Should the seller refuse to disclose this information, the agent should surrender the listing. (Wargo, 2007)
2. Sending Mixed Signals – Article 1, “When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. Amended 1/01” (NAR, Governing Documents, 2016)
• An agent may have a dual role acting as both seller and buyers agent. In this role the agent has a responsibility to serve in the best interest of each party, and must also notify both parties that she is working in a dual agent capacity, so as not to mislead either party. (Wargo, …show more content…
Ethics in Advertising – Article 12, “REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. Amended 1/08” (NAR, Governing Documents, 2016)
• RE/MAX offers franchise opportunities. RE/MAX, LLC has identified that, "Nobody in the world sells more real estate than RE/MAX” (RE/MAX, 2016). An individual franchise or RE/MAX agent enjoys the benefit of RE/MAX, LLC and can copy and post the company’s logo on their letterhead, however, they may not state as an individual that nobody in the world sells more real estate than they do, as this is false advertising. (Wargo,

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