Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 14, 1991 TAG: 9104120200
SECTION: AMERICAN HOME WEEK PAGE: 11 EDITION: METRO
SOURCE: GENNY ELIAS
DATELINE: LENGTH: Medium
The code of ethics is what separates REALTORS from the rest of the crowd, said broker/REALTOR Bill Gearhart.
The REALTORS' Code of Ethics is so strict, in fact, that when many states considered setting up boards to monitor the activities of real estate licenses, they looked to the code for guidelines.
"In fact, most license laws are patterned after the REALTORS' Code of Ethics," said Gearhart, who is also a member of the Roanoke Valley Association of REALTORS, the Virginia Association of REALTORS and the National Association of REALTORS.
The National Association of REALTORS began in 1908 with the express purpose of establishing official rules of conduct for its members. These rules are now referred to as the code of ethics and were adopted in 1913. In 1924, adherence to the code of ethics was made a condition of membership in NAR.
Gearhart said the adoption of the code of ethics predates any license law by nine years.
To become a REALTOR, a person must first complete educational requirements, pass the state examination and obtain a real estate license from the Real Estate Board.
This board also upholds and establishes real estate laws and the rules and regulations of real estate, Gearhart added.
There are really only two licenses that REALTORS can hold: a sales agent license and a broker license.
A sales agent is qualified to sell real estate, be it commercial or residential, he said.
A broker is a sales agent who has been actively in the business at least two years and who has taken additional courses, as well as passing a qualifying examination, he said.
This person is allowed to hire sales agents and operate a real estate business.
The term associate broker refers to those who have a broker's license but do not have their own businesses.
It is important to remember that a person can be a sales agent and even a broker without being a REALTOR.
"Everybody thinks that if you have a real estate license, you're a REALTOR, but you're not," Gearhart explained.
"You have to be a member of a REALTORS' association, and you have to agree to abide by the code of ethics in order to be a REALTOR.
"That code of ethics essentially is the big difference between a licensee and a REALTOR," he added.
The benefit of looking for the REALTORS' symbol when considering the purchase of real estate is that you know the REALTOR has taken the oath to uphold the code of ethics and that the person is educated, Gearhart said.
The association sponsors a number of seminars and courses to keep REALTORS on top of the changes in the real estate market, he said. These topics range from fair housing to contract writing.
In addition, the code of ethics requires REALTORS to treat all parties involved in the transaction fairly, he said.
If there is a problem with a REALTOR, sellers and buyers can file a grievance with their local REALTOR association.
Here it would be the Roanoke Valley Association of REALTORS, Gearhart said. The association then would investigate the complaint and, if necessary, hold a disciplinary hearing and take appropriate action, which can range from fining the individual to expelling them from the association .
Only the state real estate board has the ability to suspend the sales agent's license, he added.
by CNB