| Standards of Business Practices
Standards of Business Practices
Accompanying the CREA Code of Ethics are these Standards of Business
Practices for REALTORS in Canada.
ARTICLE 1
REALTORS shall endeavour to be informed regarding the essential
facts, which affect current market conditions in order to be in
a position to counsel their clients and/or to assist customers in
a responsible manner.
ARTICLE 2
A REALTOR shall protect and promote the interests of his or her
client. This primary obligation does not relieve the REALTOR of
the responsibility of dealing fairly with all parties to the transaction.
ARTICLE 3
A REALTOR shall fully disclose in writing to, and is advised to
seek written acknowledgment of disclosure from, all parties to a
transaction regarding the role and the nature of service the REALTOR
will be providing to the client versus the customer or other party
to the transaction. The REALTOR shall also disclose his or her role
to other REALTORS involved in the transaction.
ARTICLE 4
A REALTOR has an obligation to discover facts pertaining to every
property for which the REALTOR accepts an agency which a reasonably
prudent REALTOR would discover in order to fulfil the obligation
to avoid error, misrepresentation or concealment of pertinent facts.
ARTICLE 5
REALTORS should ensure written representation agreements whenever
possible in order to avoid misunderstandings with their clients
and customers.
ARTICLE 6
REALTORS shall ensure that agreements regarding real estate transactions
are in writing in clear and understandable language, expressing
the specific terms, conditions, obligations and commitments of the
parties to the agreement. A copy of each final agreement shall be
furnished to each party upon their signing or initialing, and shall
be dealt with in accordance with the instructions of the parties
involved.
ARTICLE 7
The REALTOR shall, prior to the signing of any agreement, fully
inform the signing party regarding the type of expenses for which
he/she may be normally liable.
ARTICLE 8
A REALTOR shall not accept compensation from more than one party
to a transaction without the written consent of his or her client(s).
ARTICLE 9
REALTORS shall disclose to a client or customer if there is any
financial benefit the REALTOR or his/her firm may receive as a result
of recommending real estate products or services to that party.
ARTICLE 10
A REALTOR shall not accept any rebate or profit on expenditures
made for a client without the client's consent or accept any rebate
or profit on expenditures for a customer without the customer's
knowledge.
ARTICLE 11
The REALTOR shall not discourage parties to a transaction from seeking
legal counsel.
ARTICLE 12
The REALTOR shall not knowingly permit any property in his or her
charge to be used for unlawful purposes.
ARTICLE 13
A REALTOR shall not present an offer or acquire an interest in property
either directly or indirectly for himself or herself, any member
of his or her immediate family or any entity in which the REALTOR
has a financial interest, without making the REALTOR's position
known to the seller in writing. In selling/leasing property owned
by the REALTOR, or in which the REALTOR has an interest, the interest
shall be revealed to the buyer/tenant in writing.
ARTICLE 14
In providing an opinion of value of real property, a REALTOR shall
not undertake to provide such an opinion if it is outside the REALTOR's
field of experience to do so, unless this fact is disclosed to the
client or unless assistance is obtained from another person who
has experience in this area. A REALTOR shall not perform an appraisal
contrary to the terms and conditions of any designation the REALTOR
holds through The Canadian Real Estate Association. In all other
circumstances, the REALTOR shall not provide an opinion of value
on property in which the REALTOR has a present or contemplated interest
without first disclosing this fact to the client. Fees charged for
providing an opinion of value shall not be based on the amount of
value reported.
ARTICLE 15
A REALTOR shall present all written offers and counter-offers as
objectively and as quickly as possible.
ARTICLE 16
A REALTOR shall not advertise a property if such advertising has
been restricted at the request of the seller/landlord. In any advertisement,
the advertised or offered price of a property shall not be other
than that which was agreed upon with the seller/landlord. (Also
applies to Article 25.)
ARTICLE 17
A REALTOR is obliged to render a skilled and conscientious service,
in conformity with standards of competence which are reasonably
expected in the specific real estate disciplines in which the REALTOR
engages. When a REALTOR is unable to render such service, either
alone or with the aid of other REALTORS, the REALTOR should not
accept the assignment or otherwise provide assistance in connection
with the transaction.
ARTICLE 18
REALTORS shall ensure a true presentation in all advertising. Properties
and services shall not be advertised without identifying the firm
or, where applicable, the individual practitioner, in accordance
with provincial licensing legislation.
ARTICLE 19
The REALTOR shall not deny professional services to any person for
reasons of race, creed, colour, sex, familial status, age, or national
origin. The REALTOR shall not be party to any plan or agreement
to discriminate against a person or persons on the basis of race,
creed, colour, sex, familial status, age or national origin.
ARTICLE 20
The REALTOR shall observe the By-Laws, Rules and Regulations established
by the REALTOR's Real Estate Board and/or Association, in addition
to the regulations, terms and conditions associated with any designation
that the REALTOR may hold through membership in The Canadian Real
Estate Association.
ARTICLE 21
The business of a REALTOR shall be conducted in strict accordance
with all statutory and regulatory requirements that apply to that
business.
ARTICLE 22
The REALTOR shall never publicly discredit a competitor. If the
REALTOR's opinion is sought regarding a specific transaction, it
should be rendered with strict professional integrity and courtesy.
ARTICLE 23
The agency or other contractual relationship of a competitor shall
be respected by all REALTORS. Negotiations concerning exclusively
listed property or with any party who is exclusively represented
shall be carried on with the client's agent and not with the client
directly, except with the consent of the client's agent.
ARTICLE 24
A REALTOR shall not seek information about a competitor's transaction
to be used for the purpose of closing a transaction himself or herself,
or for the purpose of interfering with any other contractual undertaking.
ARTICLE 25
Signs in respect of the sale, rent, lease, development or exchange
should not be placed on any property by other than the listing broker
unless authorized by the seller/landlord. REALTORS shall not interfere
with another real estate broker's sign.
ARTICLE 26
Should a REALTOR be asked to co-operate in any way in connection
with a disciplinary investigation or proceeding pertaining to alleged
unethical practice, the REALTOR shall place all pertinent facts
before the proper Committee of the Real Estate Board or Association
to which the REALTOR belongs.
ARTICLE 27
In the event of a dispute between REALTORS associated with different
firms of the same local Board/Association regarding the fee or commission
earned or to be earned in connection with a real estate transaction,
the dispute shall be submitted for arbitration in accordance with
the By-Laws, Rules and Regulations of their local Board/Association.
ARTICLE 28
In the event of a dispute between REALTORS associated with different
firms and belonging to different local Boards/Associations, regarding
the fee or commission earned or to be earned in connection with
a real estate transaction, the dispute shall be submitted to arbitration
in accordance with the By-Laws and Rules and Regulations of the
appropriate Provincial/Territorial Association. Should the REALTORS
belong to different Provincial/Territorial Associations, the dispute
shall be arbitrated in accordance with the By-Laws and Rules and
Regulations of The Canadian Real Estate Association.
ARTICLE 29
The business of a REALTOR shall be conducted so as to avoid controversies
with other REALTORS.
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