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Professional Standards – Highlight of the Month

September 6, 2012

Professional Standards, by Jean Elmore, Chair of the Professional Standards Committee

There are 17 Articles in the Code of Ethics and each month we’ll consider one Article. When available, I’ll include a link to a case study of a grievance that cites one of the Standards of Practice  that the complainant feels was violated. Since it is impossible to highlight all Standards of Practice – there are 15 of them under Article 1 alone – I’ll try to pick one that reflects timely situations. These are actual cases from other states and the findings of the hearing panel are shown at the end.

Duties to Clients and Customers 

Article 2

REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. (Amended 1/00)

This case study also emphasizes a managing broker’s obligation for associates errors or exaggeration.

Case Study: Broker’s obligation to verify seller’s information

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