CANADIAN REAL ESTATE ASSOCIATION

CODE OF ETHICS

Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization.

Through the REALTOR®, the land resource of the nation reaches its highest use and private land ownership its widest distribution. The REALTOR® is instrumental in molding the form of his or her community and the living and working conditions of its people.

Such functions impose grave social responsibilities which REALTORS® can meet only by diligent preparation, and considering it a civic duty to dedicate himself or herself to the fulfillment of the REALTOR's® obligations to society.

The REALTOR® therefore must be zealous to maintain, and continually strive to improve, the professional standards of his or her calling:

By keeping informed as to the developments and trends in real estate;

By endeavoring to protect the public against fraud, misrepresentation or unethical practice in connection with real estate transactions;

By rendering services and opinions based only on the REALTOR’s® knowledge, training, qualifications and experience in real estate;

By seeking no unfair advantage over, nor injuring directly or indirectly the reputation of, nor publicly disparaging the business practice of other REALTORS®, and

By being loyal to the REALTOR's® Real Estate Board and Provincial Association and active in their work.

In the interpretation of his or her obligations, the REALTOR® can take no safer guide than that which has been embodied in the Golden Rule - "Do unto others as you would have them do unto you".

No inducement of profit and no instructions from clients or customers can ever justify departure from the ideals of fair dealing and high integrity resulting from adherence to a lofty standard of moral conduct in business relations.

Accepting this standard as his or her own, each REALTOR® pledges to observe the spirit of the Code in all dealings and to conduct business in accordance with the Professional Standards as adopted by The Canadian Real Estate Association.

CANADIAN REAL ESTATE ASSOCIATION PROFESSIONAL STANDARDS

DUTIES TO CLIENTS AND CUSTOMERS

ARTICLE 1

REALTORS® shall endeavor to be informed regarding the essential facts which affect current market conditions in order to be in a position to counsel their clients and/or to assist customers in a responsible manner.

ARTICLE 2

A REALTOR® shall protect and promote the interests of his or her client. This primary obligation does not relieve the REALTOR® of the responsibility of dealing fairly with all other parties to the transaction.

ARTICLE 3

A REALTOR® should fully disclose in writing to, and is advised to seek written acknowledgement of disclosure from, all parties to a transaction regarding the role and the nature of service the REALTOR® will be providing to the client versus the customer or other party to the transaction. The REALTOR® shall also disclose his or her role to other REALTORS® involved in the transaction.

ARTICLE 4

A REALTOR® has an obligation to discover facts pertaining to every property for which the REALTOR® accepts an agency which a reasonably prudent REALTOR® would discover in order to fulfill the obligation to avoid error, misrepresentation or concealment of pertinent facts.

ARTICLE 5

REALTORS® should ensure written representation agreements whenever possible in order to avoid misunderstandings with their clients and customers.

ARTICLE 6

REALTORS® shall ensure that agreements regarding real estate transactions are in writing in clear and understandable language, expressing the specific terms, conditions, obligations and commitments of the parties to the agreement. A copy of each final agreement shall be furnished to each party upon their signing or initialing, and shall be dealt with in accordance with the instructions of the parties involved.

ARTICLE 7

The REALTOR® shall, prior to the signing of any agreement, fully inform the signing party regarding the type of expenses for which he/she may be normally liable.

 ARTICLE 8

A REALTOR® shall not accept compensation from more than one party to a transaction without the written consent of his or her client(s).

ARTICLE 9

REALTORS® shall disclose to a client or customer if there is any financial benefit the REALTOR® or his/her firm may receive as a result of recommending real estate products or services to that party.

ARTICLE 10

A REALTOR® shall not accept any rebate or profit on expenditures made for a client without the client’s consent or accept any rebate or profit on expenditures for a customer without the customer’s knowledge.

ARTICLE 11

The REALTOR® shall not discourage parties to a transaction from seeking legal counsel.

ARTICLE 12

The REALTOR® shall not knowingly permit any property in his or her charge to be used for unlawful purposes.

ARTICLE 13

A REALTOR® shall not present an offer or acquire an interest in property either directly or indirectly for himself or herself, any member of his or her immediate family or any entity in which the REALTOR® has a financial interest, without making the REALTOR’s® position known to the seller in writing. In selling/leasing property owned by the REALTOR®, or in which the REALTOR® has an interest, the interest shall be revealed to the buyer/tenant in writing.

ARTICLE 14

In providing an opinion of value of real property, a REALTOR® shall not undertake to provide such an opinion if it is outside the REALTOR’s® field of experience to do so, unless this fact is disclosed to the client or unless assistance is obtained from another person who has experience in this area. A REALTOR® shall not perform an appraisal contrary to the terms and conditions of any designation the REALTOR® holds through The Canadian Real Estate Association. In all other circumstances, the REALTOR® shall not provide an opinion of value on property in which the REALTOR® has a present or contemplated interest without first disclosing this fact to the client. Fees charged for providing an opinion of value shall not be based on the amount of value reported.

ARTICLE 15

A REALTOR® shall present all written offers and counter-offers as objectively and as quickly as possible.

 ARTICLE 16

A REALTOR® shall not advertise a property if such advertising has been restricted at the request of the seller/landlord. In any advertisement, the advertised or offered price of a property shall not be other than that which was agreed upon with the seller/landlord. (Also applies to Article 25.)

DUTIES TO THE PUBLIC

ARTICLE 17

A REALTOR® is obliged to render a skilled and conscientious service, in conformity with standards of competence which are reasonably expected in the specific real estate disciplines in which the REALTOR® engages. When a REALTOR® is unable to render such service, either alone or with the aid of other REALTORS®, the REALTOR® should not accept the assignment or otherwise provide assistance in connection with the transaction.

ARTICLE 18

REALTORS® shall ensure a true presentation in all advertising. Properties and services shall not be advertised without identifying the firm or, where applicable, the individual practitioner, in accordance with provincial licensing legislation.

ARTICLE 19

The REALTOR® shall not deny professional services to any person for reason of race, creed, colour, sex, familial status, age, or national origin. The REALTOR® shall not be party to any plan or agreement to discriminate against a person or person on the basis of race, creed, colour, sex, familial status, age or national origin.

ARTICLE 20

The REALTOR® shall observe the Bylaws, Rules and Regulations established by the REALTOR’s® Real Estate Board and/or Association, in addition to the regulations, terms and conditions associated with any through membership in The Canadian Real Estate Association.

ARTICLE 21

The business of a REALTOR® shall be conducted in strict accordance with all statutory and regulatory requirements that apply to that business.

DUTIES TO REALTORS

ARTICLE 22

The REALTOR® shall never publicly discredit a competitor. If the REALTOR’s® opinion is sought regarding a specific transaction, it should be rendered with strict professional integrity and courtesy.

ARTICLE 23

The agency or other contractual relationship of a competitor shall be respected by all REALTORS®. Negotiations concerning exclusively listed property or with any party who is exclusively represented shall be carried on with the client’s agent and not with the client directly, except with the consent of the client’s agent.

ARTICLE 24

A REALTOR® shall not seek information about a competitor’s transaction to be used for the purpose of closing a transaction himself or herself, or for the purpose of interfering with any other contractual undertaking.

ARTICLE 25

Signs in respect of the sale, rent, lease, development or exchange should not be placed on any property by other than the listing broker unless authorized by the seller/landlord. REALTORS® shall not interfere with another real estate broker’s sign.

ARTICLE 26

Should a REALTOR® be asked to co-operate in any way in connection with a disciplinary investigation or proceeding pertaining to alleged unethical practice, the REALTOR® shall place all pertinent facts before the proper Committee of the Real Estate Board or Association to which the REALTOR® belongs.

ARTICLE 27

In the event of a dispute between REALTORS® associated with different firms of the same local Board/Association regarding the fee or commission earned or to be earned in connection with a real estate transaction, the dispute shall be submitted for arbitration in accordance with the Bylaws, Rules and Regulations of their local Board/Association.

ARTICLE 28

In the event of a dispute between REALTORS® associated with different firms and belonging to different local Boards/Associations, regarding the fee or commission earned or to be earned in connection with a real estate transaction, the dispute shall be submitted to arbitration in accordance with the Bylaws and Rules and Regulations of the appropriate Provincial/Territorial Association. Should the REALTORS® belong to different Provincial/Territorial Associations, the dispute shall be arbitrated in accordance with the Bylaws and Rules and Regulations of The Canadian Real Estate Association.

ARTICLE 29

The business of a REALTOR® shall be conducted so as to avoid controversies with other REALTORS®.