StraightTalk   a guide to understanding the Code of Ethics

StraightTalk is a great place to start learning how living the code can help improve your business, but it’s no legal substitute for the Code of Ethics.

Thoughts on Article 8

Keep your finances separate

Article 8 says you can’t mix your personal money with money that comes to you for things like escrows, trust funds or your clients. It’s called commingling funds, and it’s not good. So open an account at an appropriate financial institution—and keep your business and personal finances separate.

Next: Clarity diffuses conflicts

Terms to Know:

Before we begin, there are several terms that appear in the Code of Ethics that could use a little clarification:

Client is anyone that you or your firm has a formal agreement to work with. It could be an agency relationship or you could be providing a non-contracted service.

Customer is a party to a real estate transaction who receives information, services or some other benefit from you, but doesn’t have a contract with you or your firm.

Prospect is a buyer, seller, tenant or landlord with whom you or your firm has no contract. An agent is anyone with a real estate license (though not necessarily a REALTOR®) acting in an agency relationship as defined by Virginia law.

Broker is someone with a real estate license (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and “broker” means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.

REALTOR® is someone who has earned his/her real estate license and also earned the right to use the title. REALTORS® serve many roles in different real estate transactions. For our purposes, we mean the term to be all inclusive, whether the REALTOR® represents a buyer, seller, tenant or landlord. Whether they provide contracted services or provide a service without a contract.

© 2006 Virginia Association of REALTORS®     legal notice