Ethical Practice

As part of the National Association of REALTORS (NAR), we practice the Code of Ethics.

As agents, we need to maintain ethical practice to make sure we do our jobs as ethical as possible. It is beneficial for buyers and sellers when using an agent to make sure they are part of NAR (or the local association) to verify that they are covered ethically as well as legally.

Ethics can mean many things, but as REALTORS we follow the

If you are working with an agent you want to be sure they do not misrepresent you as a client and that the REALTOR representing you practices their responsibilities according to the type of relationship you have with that agent. Be knowledgable about the responsibilities of REALTORS to you as their client, and if you have questions, ask!

The following are the relationships that you can have with a brokerage:
(This is based out of Florida and may change throughout the years)

Transaction Broker Relationship, when working with an agent this type of relationship is assumed, the Broker may represent both the buyer and seller in this type of relationship.

Responsibilities of the Brokerage:
1. Dealing honestly and fairly; .2. Accounting for all funds;
3. Using skill, care, and diligence in the transaction;
4. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;
5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
6. Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and
7. Any additional duties that are mutually agreed to with a party.

Single Agency Relationship, owes fiduciary responsibility to either the buyer or seller, but CAN NOT represent both.

Responsibilties of the Brokerage:
1. Dealing honestly and fairly
2. Loyalty
3. Confidence
4. Obedience (within the scope of the law)
5. Disclosure
6. Accounting for all funds
7. Skill, care and diligence in the transaction
8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing
9. Disclose all known facts that materially affect the value of residential property and are not readily observable.

Many buyers and sellers think this may be the best, but it might not always be in your favor. For example, you are a seller and a buyer comes along that does not have a relationship with another brokerage, if you have a single agency relationship with a brokerage, that brokerage can not represent that buyer. If you are a buyer and have a single agency relationship with a brokerage, you can not buy a house that is listed in that brokerage. A Transition to Transaction form must be signed in order for the brokerage to work with that buyer in this case, which changes your relationship from Single Agency to Transaction Broker.

Cozza Investment Group Inc