Article 11 of the NAR Code of Ethics
I wrote this post earlier this year after the National Association of REALTORS(R) modified Article 11 to include land brokerage to the code of ethics. Excerpt from Article 11:
REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/10)
Article 11 emphasizes the importance for working within our area of competence. Should this situation come up, work with someone who is competent in the particular field of real estate.
Don’t Jeopardize Your Real Estate Career
NAR recently modified Article 11 of the REALTOR® Code of Ethics to include adding raw land as a real estate discipline.
What does this mean to us as REALTORS® should we come in contact with someone who wants to either purchase or sell a parcel of raw land? If we wish to work in areas that requires know-how beyond our level of competence; we should do one of three things:
- Get appropriate training.
- Get assistance from a person who has the required expertise.
- Disclose to your clients that you don’t have the necessary skills.
Warning!!!
Preferring to ignore these items and choosing to work outside of our area of expertise is an Article 11 violation of the Code.
I would like to add one more item to the list. Before getting involved in any transaction that is beyond your area of expertise and capability, refer it to a REALTOR® who has the required knowledge to do the job. Leave areas of this business where you lack sufficient knowledge to the experts. Take the referral fee. It’s a lot easier and more financially rewarding than jeopardizing your real estate career.
(Source VAR Commonwealth Online)
Michael Setunsky is the Broker and owner of Michael's Commercial LLC serving the Northern Virginia commercial real estate market. He has been licensed since 1985 and a Broker since 1990. As a commercial real estate and business broker, he has earned the distinction for being one of the top commercial real estate producers in the Mid-Atlantic Region. He also serves on the Mid Atlantic Real Estate Marketing Association's (MAREMA) Board of Directors, and is a Commonwealth of Virginia licensed Instructor. He teaches Pre-licensing, Post Licensing Education, Broker's and Continuing Education courses. Visit his company web site at http://michaelscommercial.com/.
©2011 Michael’s Commercial LLC, All Rights Reserved – Article 11 of the NAR Code of Ethics – December 10, 2011
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