The REALTOR® Code of Ethics was one of the first ethical pledges made by any business group over 100 years ago. The Code was adopted in 1913, shortly after the National Association of REALTORS® was formed. This was before women could vote, the automobile was new technology and the real estate industry was unstructured and easily exploited. Over the years, as societal norms have changed, the Code has morphed into what we know today; 17 articles, aimed at ensuring that we as REALTORS®, hold each other accountable to the highest ethical business practices.     
 
This month, my goal is to remind you to keep the Code of Ethics and professional business practices top of mind. This week, I specifically want to address Article 1 of the Code of Ethics and specific changes that were made to Standard of Practice 1-7.
 
Code of Ethics Article 1
It's about honesty. Protecting and promoting the interest of a client. Even when serving the public in a non-agency capacity, REALTOR® members have an obligation to treat all parties honestly.
 
Standard of Practice 1-7
Addresses transparency while facilitating a real estate transaction. Specifically, when presenting and receiving offers, Standard of Practice 1-7 formally states:     

When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/landlord has waived the obligation to have the offer presented. REALTORS® shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. REALTORS® shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease. (Amended 1/19)

The change to Standard of Practice 1-7 was initiated to create more transparency and communication during a transaction. To comply with this change, make your intentions clear by documenting your communication. For instance, 

• A client can acknowledge and reject an offer using NMAR forms.
• Keep a read receipt confirmation from your email to document an offer was submitted to your client.
• Ask that your seller responds in writing, via email they have chosen not to respond to the offer. This will allow you to respond and document to the cooperating broker that you followed through on your efforts to present their offer.
• Save emails documenting that you sent an offer to your client.
• Obtain documentation from your client that they have declined to look at the offer.

Make it a part of your professional process to comply with “The Code” requirements and make sure you have a complete and well-documented contract. Transparency and communication will help raise the bar when representing, buyers, sellers and working with other REALTORS®.

Kellie Tinnin holds a full-time position as the Training Administrator for the Greater Albuquerque Association of REALTORS® in Albuquerque, NM. Kellie embodies a passion for the real estate industry. Before accepting the position with GAAR, she was a top-producing real estate broker and real estate trainer. 

On a personal note, Kellie is one of those “dog” people, and her English Bulldog Momo is her fur child. When she is not working, she can be found relaxing with Momo and her husband, exploring many of the excellent eateries and attractions that Albuquerque offers.