Realtor® Ethics & Professional Standards

The Heart of the Profession

The National Association of Realtors® Code of Ethics lies at the heart of being a Realtor®. Since its adoption in 1913, the Code has promoted time-honored principles that are generally defined as:

  • Loyalty to clients
  • Cooperation with competitors
  • Fiduciary duty to clients
  • Truthfulness in statements and advertising and non-interference in exclusive relationships that other Realtors® have with their clients.

Professional Standard Procedures

Each local association has its own procedures for filing an ethics complaint.

Additionally, PAR is responsible for enforcing the Code of Ethics for 30 local boards and associations as part of the Statewide Professional Standards Cooperative.

If the Realtor® is not a participant of the Statewide Professional Standards Cooperative contact your local association to report a potential violation of the Code.

Have a problem?

Realtors® who violate the Code of Ethics can be subject to sanctions by their local association through procedures established by the National Association of Realtors®.

If you believe another Realtor® has violated the code or the law, there are a variety of ways you can attempt to resolve the issue or file a complaint.

To report a potential violation of the Code involving a member of the following associations, contact PAR.

Remember: potential legal violations are handled by the State Real Estate Commission, not the local association.

Understanding an Ethics Complaint

Only Realtors® and Realtor-Associates® are subject to the Code of Ethics of the National Association of Realtors®. Local boards and associations of Realtors® determine whether the Code of Ethics has been violated, not whether the law or real estate regulations have been broken. Those decisions can only be made by the licensing authorities or courts.

Realtors® can receive discipline from their local board or association as a result of an ethics complaint. Typical forms of discipline include attendance at courses and seminars designed to increase understanding of ethical duties or other responsibilities. Realtors® may be reprimanded, fined or their membership suspended or terminated for serious or repeated violations. Local boards and associations cannot require Realtors® to pay money to parties filing ethics complaints, award “punitive damages” for violations, or suspend or revoke real estate licenses.

Before Filing an Ethics Complaint

Many difficulties between real estate professionals result from misunderstandings or miscommunications. If you have a problem with a real estate professional, you may want to speak with them or with a principal broker. Open, constructive discussion often resolves questions or differences, eliminating the need for further action.

If you have a problem with a real estate professional, you may want to speak with them or with a principal broker in the firm. Open, constructive discussion often resolves questions or differences, eliminating the need for further action. Many boards and associations have informal dispute-resolving processes available to consumers (e.g., ombudsmen, mediation, etc.).

If, after taking these steps, you still feel you have a grievance, you may want to consider filing an ethics complaint. If the real estate professional (or their broker) is not a Realtor®, your only recourse may be the Pennsylvania State Real Estate Commission or the courts.

Filing an Ethics Complaint

Each local board or association can provide you with information about the procedures for filing an ethics complaint. Here are some general principles to keep in mind.

  • Complaints must be filed within 180 days from the time the complainant knew (or reasonably should have known) that potentially unethical conduct took place.
  • The Code of Ethics consists of 17 Articles. The duties imposed by many of the Articles are explained through accompanying Standards of Practice.
  • Include a narrative description in your complaint of the circumstances that led you to believe a violation occurred.
  • Cite one or more of the Articles of the Code of Ethics which may have been violated. Ethics hearing panels determine whether the Articles expressly cited in complaints were violated, not whether Standards of Practice were violated.
  • The local board or association of Realtors’® Grievance Committee may provide technical assistance in preparing a complaint in proper form and with proper content.

Understanding an Ethics Hearing

Before the Hearing

The local board or association’s Grievance Committee will review your complaint. They review complaints to determine if the allegations made, if taken as true, might support a violation of the Article(s) cited in the complaint.

If the Grievance Committee dismisses your complaint, it means they do not feel that the allegations made would support a hearing panel’s conclusion that the Article(s) cited had been violated. You may want to review your complaint and the Article(s) cited to see if they are appropriate for the allegations. You can appeal this dismissal to the board of directors of the local board or association.

If the Grievance Committee forwards your complaint for hearing, that does not mean they have concluded a violation has occurred. It means they feel that if what you allege is found to have occurred by the hearing panel, that panel may have reason to find that a violation has occurred.

Preparing for the Hearing

Familiarize yourself with the hearing procedures that will be followed, such as challenging potential panel members, your right to counsel, calling witnesses and the burdens and standards of proof that apply.

Complainants have the ultimate responsibility (“burden”) of proving that the Code of Ethics has been violated. The standard of proof that must be met is “clear, strong and convincing,” defined as “that measure or degree of proof which will produce a firm belief or conviction as to the allegations sought to be established.” Consistent with American jurisprudence, respondents are considered innocent unless proven to have violated the Code of Ethics.

Ensure that your witnesses and counsel will be available on the day of the hearing. Continuances are a privilege, not a right.

Collect all documents and other evidence to present your case.

Organize your presentation in advance. Know what you will say and be prepared to demonstrate what happened and how you believe the Code of Ethics was violated.

At the Hearing

The panel members are unpaid volunteers giving their time as an act of public service Their objective is to be fair, unbiased and impartial; to determine, based on evidence and testimony presented to them, what occurred; and then to determine whether the facts, as they find them, support a finding that the Article(s) charged have been violated.

Hearing panels cannot conclude that an Article has been violated unless it was specifically cited in the complaint.

Keep your presentation concise, factual and to the point. Demonstrate what happened (or what should have happened but didn’t) and how the facts support a violation of the Article(s) charged in the complaint.

The hearing panel’s decision is based on evidence and testimony presented during the hearing. If you have relevant information, be sure to bring it up during your presentation.

Different people can witness the same event and have differing recollections about what they saw. The fact that a respondent or their witnesses recall things differently does not mean they aren’t telling the truth as they recall the events. It is up to the hearing panel to determine what actually happened.

The hearing panel will pay careful attention to what you say and how you say it. An implausible account doesn’t become more believable through repetition or through volume.

This process is adversarial and, to some degree, unavoidably confrontational. Many violations of the Code of Ethics result from misunderstanding or lack of awareness of ethical duties by otherwise well-meaning real estate professionals. An ethics complaint has the potential to be viewed as an attack on a respondent’s integrity and professionalism. For the enforcement process to function properly, it is imperative that all parties maintain appropriate decorum.

After the Hearing

When you receive the hearing panel’s decision, review it carefully. Findings of fact are conclusions of impartial panel members based on their reasoned assessment of all evidence and testimony presented during the hearing. Findings of fact are not appealable.

If you believe the hearing process was seriously flawed to the extent you were denied a full and fair hearing, there are appellate procedures that can be involved. The fact that a hearing panel found no violation is not appealable.

Refer to the procedures used by the local board or association for detailed information on the bases and time limits for appealing decisions or requesting a rehearing. Rehearings are generally granted only when newly discovered evidence comes to light, which could not reasonably have been discovered and produced at the original hearing and which might have had a bearing on the hearing panel’s decision. Appeals brought by ethics respondents must be based on a perceived misapplication or misinterpretation of one or more Articles of the Code of Ethics; a procedural deficiency or failure of due process; or the nature or gravity of the discipline proposed by the hearing panel. Appeals brought by ethics complainants are limited to procedural deficiencies or failures of due process that may have prevented a full and fair hearing.

Frequently Asked Questions

Realtors® are members of the National Association of Realtors®. Not all real estate licensees are Realtors®.

How do I file a complaint against a real estate licensee?

If you have a complaint against a real estate licensee who is not a Realtor®, try talking to the principal broker in the firm to see if the issue can be resolved. Open, constructive discussion often resolves questions or differences, eliminating the need for further action.

If those efforts are unsuccessful, you can file a formal complaint through the Pennsylvania State Real Estate Commission.

I think a broker or agent violated the Real Estate Licensing and Registration Act (RELRA) or the Rules and Regulations. What can I do?

You can file a formal complaint through the Pennsylvania State Real Estate Commission. The SREC issues and maintains licenses and writes the rules and regulations that all Pennsylvania licensees subscribe to. The Commission investigates the complaint and if violations of the license law are found, sanctions can be imposed ranging from fines to license revocation.

What type of sanctions are there if a Realtor® has violated the Code of Ethics?

Sanctions for ethical violations tend to be educational in nature, such as requiring a Realtor® to obtain additional education to prevent future violations. They can also include fines and suspension from the association.

A local association cannot impose sanctions that would include canceling a real estate purchase contract or forcing a Realtor® to pay for alleged damages to property.

Statewide Professional Standards Cooperative

The Pennsylvania Association of Realtors® enforces the Code of Ethics for 30 local boards and associations as part of the Statewide Professional Standards Cooperative. To report a potential violation of the Code of Ethics involving a member of the following associations, contact us.

  • Allegheny Highlands Association
  • Allegheny Valley Board
  • Beaver County Association
  • Bradford-Sullivan Association
  • Cambria-Somerset Association
  • Central Susquehanna Valley Board
  • Centre County Association
  • Clearfield-Jefferson Association
  • Elk-Cameron County Board
  • Fayette Board
  • Greater Erie Board
  • Greater Allegheny-Kiski Association
  • Greater Mercer County Association
  • Greater Scranton Board
  • Huntingdon County Board
  • Lawrence County Board
  • Lebanon County Association
  • Luzerne County Association
  • McKean County Association
  • North Central Penn Board
  • Pike/Wayne Association
  • Pocono Mountain Association
  • Reading-Berks Association
  • Realtors® Association of Westmoreland, Indiana and Mon Valley
  • Schuylkill County Board
  • Warren County Board
  • Washington-Greene Association
  • West Branch Valley Association

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