At Home With Lisa-Is There A Difference Between Realtors and Real Estate Agents?

Is a Realtor the same as a real estate agent?

The terms are often used interchangeably, but there is one major difference. A real estate agent has obtained a state license to assist consumers in buying or selling properties. However, a Realtor has gone a step above and become a member of the National Association of Realtors, an organization that holds members to high ethical standards and trains them in the most effective practices.

The word Realtor is a trademark referring to someone who's an active member of the National Association of Realtors (NAR). In the United States, a real estate agent is licensed to help consumers buy and sell commercial or residential property. But not all real estate agents are Realtors.  Only about half of all licensed real estate agents in the U.S. are Realtors or members of the NAR.  To qualify for membership, you must agree to adhere to NAR's strict code of ethics and standards of practice. The official ethics code is revised yearly to reflect the latest issues in real estate law and practice, and its core message is to "treat all parties honestly" [source: National Association of Realtors]. Although the primary responsibility of a buying or selling agent is to his or her client, Realtors promise never to mislead or withhold information from anyone involved in the real estate transaction -- including the other real estate agent and his or her clients.  Part of the incentive for becoming a Realtor is to capitalize on the good reputation of NAR members. The idea is that consumers will opt to work with a real estate agent who has sworn to treat all parties fairly and honestly.

Code Of Ethics

The National Association of Realtors (NAR) created the Code of Ethics as an enforceable set of ethical guidelines that realtors must uphold and are strictly enforced by real estate boards. It states realtors’ duties to clients and customers, the public, and other realtors, which are more limiting than state guidelines.

The Code of Ethics comprises 17 articles covering different areas of professional standards of practice that must be upheld. Articles one through nine make up a Realtor’s duty to their clients and customers. Articles 10 through 14 state a Realtor’s duty to the public. And Articles 15 through 17 define a Realtor’s duty to other Realtors.

The following are summaries of the ethical duties realtors promise to abide by:

17 Articles

1. Promote their clients’ interests before their own and treat all parties involved honestly.

2. Avoid exaggerating, misrepresenting, or withholding facts about the property or transaction that are within the scope of their real estate license.

3. Cooperate with other brokers when it is in their client’s best interest.

4. Disclose with their client if they are working with another member of their existing client’s family.

5. Avoid providing professional services regarding a property they have an interest in, unless it is disclosed to the client.

6. Receive the client’s consent and knowledge before accepting any form of payment or commission.

7. Disclose to all parties and receive consent from their client if a payment is to be received from more than one party involved in a transaction.

8. Keep personal funds and clients’ funds separated.

9. Ensure all agreements are clearly and understandably communicated between all parties involved in a transaction, and that each party receives a copy of each agreement.

10. Refrain from discriminating against any person based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.

11. Competently abide by standards of practice in their real estate discipline, and do not provide services they are unqualified for.

12. Remain truthful in their advertising and marketing materials.

13. Do not practice law if they are not authorized to do so.

14. Present all evidence and cooperate if charged with unethical practice.

15. Refrain from making false or misleading statements about other real estate professionals.

16. Do not interfere in another realtor’s contractual relationships.

17. Handle disputes with other realtors through arbitration instead of litigation.

So I hope this helps you to understand the difference between real estate agents and Realtors® .I'm Lisa Longest with Realty Navigator. I am a full time Realtor® and PSA® in Anne Arundel and Queen Anne . I am here for all your real estate needs. If you are looking to buy, sell or question me about the market in your area, feel free to contact me. My email is LisaLongest.RE@Gmail.com and cell is 443-786-4200.