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 2
The truth is a foolproof business tactic
Always tell the truth about the property or the transaction. This is the simplest way to earn the trust of your client and anyone else you are working with. Don’t exaggerate, misrepresent or hide the facts, even when the facts are not pleasant. As a REALTOR®, you aren’t obligated by the Code to discover latent defects in a property or permitted to give advice on matters outside your real estate license (such as legal advice). You are obligated to maintain the confidentiality of anything told to you by your client in confidence unless disclosure of that information is required by law or agreement.
But you do have a duty to tell the truth. Always. Remember, truth equals more business.
You are obligated to tell your client about anything wrong with a property or transaction that’s reasonably apparent to someone with the skills required to get a real estate license. The Code does not expect you to have expertise in other professional or technical disciplines (we don’t presume you to be an engineer!).
Rule of thumb: if there is doubt in your client’s mind, refer them to an appropriate expert on the subject.
Next: Cooperation is good business
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.