The instructor will tell you how to form groups. In your group, you should:
Introduce yourselves if you do not already know each other.
Select a spokesperson.
3. You will have received a copy of the REALTOR Code of Ethics. Your group will be asked to summarize or "paraphrase" several Articles of the Code of Ethics and/or parts of the Preamble. Use the grid below to paraphrase the Articles you have been assigned. Your spokesperson will be asked to share your answers.
Suggested Time: 10 minutes Start time: __________ End time: __________
This section summarizes the history and background of the Code of Ethics. A short lecturette is a good delivery method. Use the slides accompanying this part. The content with these points is summarized below.
The National Association of REALTORS was formed in 1908 and the Code of Ethics was adopted in 1913. The purpose of the Code was to establish a professional standard of conduct for real estate practitioners. Before then, the real estate business had a history of speculation, exploitation, and disorder. This was before the establishment of state regulatory licensing agencies and consumer advocacy. It was a time when real estate practitioners, if they were licensed at all, were licensed as peddlers. It was an era of robber barons whose motto was “let the public be damned.”
The REALTOR Code of Ethics is based on the concept of “let the public be served.” This central concept of public protection is one of the foundations of the Articles of the Code.
The National Association of REALTORS was one of the first business groups to adopt a 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.
Similarly, the use of arbitration in monetary disputes between REALTORS was a pioneering effort. While “alternative dispute resolution” systems such as arbitration and mediation are used in the civil law system more frequently today, the requirement that REALTORS arbitrate monetary disputes between fellow REALTORS has been in effect since the inception of the Code of Ethics nearly 90 ago.