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Understanding the Realtor® Code of Ethics: Article 10 - Don't Be An Ignorant Fool (Discrimination)

By Derek and Mariana Wagner

Real Estate Agent with The Artisan Group- Keller Williams Premier Realty

January 23, 2007 04:02 PM

Welcome to Post #8 in my series, Understanding theRealtor® Code of Ethics.

Equal Housing Opportunity... Fair Housing Laws ... The little black and white house on most Realtors® business cards, flyers, advertisements ... etc. This little house represents Fair Housing Laws, and Article 10 of the Realtor® Code of Ethics addresses these.
Bottom Line? Don't be an ignorant fool. Don't discriminate.

What IS discrimination?
According to Dictionary.com, discrimination is: treatment or consideration of, or making a distinction in favor of or against, a person or thing based on the group, class, or category to which that person or thing belongs rather than on individual merit.

OK, I DO understand that there are parts of the country where racism is alive and kicking. What?!? I'm sorry... I can't even wrap my mind around the concept of racism... but it is out there. And I know there are other "isms" that I cannot wrap my mind around, either: like color-ism, religion-ism, sex-ism, familial status-ism, national origin-ism, and handicap-ism. I guess that is why we have the fair housing laws. Right? Sad, but true.

Enough of me not wrapping my mind around stupidity... Time for explaining the Fair Housing Laws, and how they relate to the Realtor® Code of Ethics.

Article 10
REALTORS^® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. REALTORS^® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.
This is the first Article (of 5) that describes a Realtors® duty to the Public. Which means that this is an obligation, not only to the client and customer, but to everyone that a Realtor® deals with... EVERYONE.

This only applies to "protected classes" which includes the following categories:

RACE
COLOR
NATIONAL ORIGIN
RELIGION
SEX
FAMILIAL STATUS
HANDICAP

"When involved in the sale or lease of a residence, REALTORS^® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however, REALTORS^® may provide other demographic information." An example of Panic Selling would be:
Agent Stu Pidd-Wann is trying to get a listing in a particular neighborhood, so he tells a potential Seller, "Now would be the time to sell because more <insert protected class here> are moving into the neighborhood, and I don't know what that may do to your property value." Yeah. Realtors® are not allowed to do that.

A Realtor® IS allowed to provide demographic information on an area, under the following 4 conditions:

It is not tied to a specific transaction that the Realtor® is involved in.
The information is compliant with Article 10- Non Discriminatory
The information is gathered from a "recognized, reliable independent and impartial" source.
Any "additions, deletions, modifications, interpretations or other changes" must be disclosed in reasonable detail.

However, a Realtor® "shall not print, display or circulate any statement or advertisement ... that indicates any preference, limitations or discrimination" based on any protected class when dealing with the sale or lease of a property. This also means that it is unethical to state, "Great Family Home" in any advertising. I know that it is well-intentioned, but it is in fact, discriminatory.

Finally, this Article applies to and protects anyone working for any Realtor® or Realtor® firm- (employees or independent contractors). No discrimination in the workplace.

Honestly, I believe that the safest way to be Article 10 compliant is to let the public find out about demographics on their own. Go online and check out the United States Census Bureau. Really, no one should be deciding on anything based on discriminatory reasons, anyway. But, if someone wants to know about a neighborhood - they can drive through it... morning, noon, night, weekends. Talk to neighbors. Go shopping at the local store. ...etc.

I invite you to please take a look at my recent post, Two Sides of Ignorance to see a real-life situation of real estate and discrimination.

Did you miss my previous posts about the Realtor® Code of Ethics? Well, you have some catching up to do...
Let's All Understand the Realtor® Code of Ethics ... Article 1
Understanding the Code of Ethics -Article 2: Disclosure
Understanding the Realtor® Code of Ethics - Article 3: Cooperating & Compensation
Understanding the Realtor® Code of Ethics: Articles 4 and 5- Disclosure of Ownership Interest
Understanding the Realtor® Code of Ethics: Articles 6 & 7 -Disclosing Compensation
Understanding the Realtor® Code of Ethics -Article 8 ...Other People's Money
Understanding the Realtor® Code of Ethics: Article 9 ~ Writing, Conveying and Maintaining a Contract

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Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

I could talk about Equal Housing all day long. That is the meat of this as far as I'm concerned. You do a very good job with this, Mariana.

Jan 23, 2007 04:21 PM

Bonnie Erickson

Tangletown Realty - Saint Paul, MN

Imagine my total shock when the police department told landlords at a tenant screening seminar that we could discriminate! It had not dawned on me that one can discriminate based on something that is not specific to one of the protected classes. So, if you discriminate based on purple hair and apply that to all of the protected people groups, you're legal. The same is true based on what city a person comes from. At the time of the seminar we had an influx of gang activity moving in from Gary, Indiana, and the police said we could discriminate based on their former address being Gary. I was flabbergasted. However, it has to apply to all the protected people groups and be part of your policy statement. Also, if it could be proven that you were using their former residence discriminate (for instance, if one chose not to rent to any people coming from Somalia or Laos) you could be in big trouble! Another basis they said was legal to discriminate on was lead poisoning. If a person with lead poisoning moves into a rental unit that unit is automatically inspected by the public health department and can be cited to be abated (costly procedure). As a result one could include a question on the application if any of the proposed residents had lead poisoning and choose not to rent to them based on that. I choose not to discriminate on anything that could be construed as prejudicial. I enjoy diversity too much!

Jan 23, 2007 06:13 PM

Virginia Halter

RE/MAX Signature Properties - Harrisburg, NC

ABR, CDPE, CRS, GREEN, SFR, SRES

Our diversity is what makes our communities their textyre. We are all better to have the right to live anywhere we would like. This just isn't the business for anyone who doesn't like everyone.

And if that isn't persuasive enough, who needs the lawsuit headache!!!!

Jan 23, 2007 09:57 PM

Dena Stevens

Rocky Mountain Realty - Canon City, CO

Putting The Real Into Realtor Since 2004

As one of our favorite Coloradians, Oliver Frasconia would say: It's about the house not the people in it.

Jan 23, 2007 11:20 PM

Derek and Mariana Wagner

The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO

The Artisan Group - Colorado Springs REALTORS®

Carole- I agree. There is so much to this particular article.
Bonnie- It is amazing... the loopholes that people can find. Sexual orientation is also not a protected class. Also, I was under the impression that age was a protected class, but from all that I read, it is not either. It is absolutely rediculous. All of it. MERIT should be the only deciding factor in any of this ... nothing else.
Virginia- I completely agree! "This just isn't the business for anyone who doesn't like everyone."
Dena- Yep! Exactly. I really like that guy...

Jan 24, 2007 02:07 AM

Rick & Ines - Miami Beach Real Estate

Majestic Properties - Miami Beach, FL

This is a HUGE issue and many agents need to read this on a daily basis to find out what they are doing wrong. In the MLS here in Miami you see "close to houses of worship" everywhere! or "walk to Temples". It amazes me how many people don't know this is wrong, but at the same time, many don't have mean intentions. About Gary, Indiana - did you guys read Sad saga in Northwest Indiana - Bigger Questions , thank you Dena for pointing me to that post - really interesting discussion and goes right along with this post. Thank you Ethic Butterfly!

Jan 24, 2007 04:13 AM

Gary Urich

Elliott Costal Living / Better Homes & Garden Real Estate - North Myrtle Beach, SC

North Myrtle Beach Real Estate

It is very important to understand these things..Or big trouble will come your way

Jan 24, 2007 05:57 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Mariana - as usual, you did a fabulous job with this post. This is such an important part of the fabric of our lives - it is terrible to know that we still deal with this.

Great job with this Article.
Ann

Jan 24, 2007 07:27 AM

Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

Mariana...Great job highlighting Article 10. Just treat everyone the same... be consistent... be fair...do the right thing even when no one is looking!

Jan 24, 2007 10:23 AM

Derek and Mariana Wagner

The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO

The Artisan Group - Colorado Springs REALTORS®

Ines- Yep! The whole Gary, Indiana thing... There are some grey areas that people tend to exploit, intentional or not!

Gary- Besides trouble, we really should do what is right for the sake of doing what is right. Yes?

Ann and Monika- Thank you. Again, these have been quite fun and educating for me as well.

Jan 24, 2007 12:22 PM

Michael Jordan

Tarbell, REALTORS - Murrieta, CA

Its sad to think that people still judge each other based on their color or religion or country of origin. I like somebody for who they are on the inside, not what they look like on the outside. I cant fathom the idea that Article 10 would ever apply to my personal or business standards.

Jan 26, 2007 09:08 PM

Derek and Mariana Wagner

The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO

The Artisan Group - Colorado Springs REALTORS®

Michael, I am right there with you. I cant wrap my mind around this one, really. But as the comments have shown, apparantly there are enough "people" out there who haven't grasped this yet. Very, very sad.

Jan 27, 2007 06:37 AM

Michael Jordan

Tarbell, REALTORS - Murrieta, CA

Mariana, after posting yesterday, I happened to watch a movie on Turner Classic Channel provided by my local cable company. The title was "Guess Who's Coming to Dinner?". Wow, what a great movie! Stanley Kramer directed this movie in 1967. Starring Spencer Tracy, Katharine Hepburn, Sidney Poitier, and Katharine Houghton. The short of it is about a wealthy white family in San Francisco who's Daughter comes home from a vacation in Hawaii and introduces them to her new fiance', whom she has only known for 10 days and they are running off to get married in the next week. She's white and he's black. They are only in town for one night before they fly out of the country for his business. Then his parents fly up from Los Angeles to meet the new potential Daughter in law at dinner at her parents home, not knowing she is white. I loved this movie, and was even shedding a few tears at the end. Yes I do cry at the movies if they get to me. I do like a happy ending! If you haven't seen it, try to find it, you'll love it to.

Jan 27, 2007 02:55 PM

Derek and Mariana Wagner

The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO

The Artisan Group - Colorado Springs REALTORS®

Michael- I will look for that. What an all-star cast! I love all of them.

Jan 27, 2007 03:28 PM

Anonymous

W. Michael Novotny

I believe when we speak about discrimination, we must look at our own REALTOR organizations. Our local Association has for years closed on the Friday afternoon before Easter "In observance of Good Friday." Why? Good Friday is not a public holiday. We don't close for Roshashana, Ramadan or Yom Kippur, so why would we close for Good Friday?

I was told it was no different than closing for Christmas, except that it is very different. The US Supreme Court has consistently held that Christmas, when celebrated with non religious icons like Santa and his elves, decorated fir trees, Rudolph and Frosty the Snowman is not religious. It is a national holiday.

Good Friday is a very somber holy day in the Christian Faith, it is not a national holiday. I don't get mail on Christmas, but I do on Good Friday. Why should a REALTOR Association close in "observance" of a Christian holy day, but not on important religious days of other faiths? Why should the Associaiton discriminate in terms of employees, asking them all to commemorate a Christian holy day, regardless of their faith? Why should any of our members be denied professional services from their Association because of a secular holy day?

How about "Invocations" and prayers at REALTOR events. Typically a Protestant pastor takes the podium at some point during or at the beginning of a meetin and asks everyone to bow their heads to ask God's blessing, "through His Son, Our Lord, Jesus Christ." What about the REALTOR members who are Jewish or Muslim, Hindu or Buddhist, Scientologists or Seikhs, Athiests or agnostics? I know this a situation that exists at many local REALTOR Associations, and at the National Association as well -- an assumption that Christianity is the preferred religion for REALTORS.

The preach to us all this cultural diversity and non-discrimination, but the REALTOR organizations are often great hypocrites when it comes to their own behavior

Mar 31, 2007 07:10 PM

#15

Derek and Mariana Wagner

The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO

The Artisan Group - Colorado Springs REALTORS®

Wow. We have never seen anything like that in with our Association, here in COlorado Springs. WHat you are talking of seems like blatant "ignorant-fool-ism" and I do not see how any of it could be tolerated by it's members.

I have never heard of "CHristianity" being prefered anything Realtor-related ... It is not true.

Sorry that it is happening in your area. I have never heard of anything like that before - anywhere.

Apr 01, 2007 09:23 AM

Anonymous

Michael

Actually, I have spoke with people who work at NAR and also people who have attended various NAR meetings. They tell me it is relatively common for meetings at even the National level to open with an invocation that becomes specifically Christian in asking for the Blessings of God through Jesus Christ.

Apr 02, 2007 05:57 PM

#17

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