The Differences Between REALTORS® & ‘Real Estate Agents’
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Bonnie Jessee, Realtor® 530 412 3984
People use the terms REALTOR® and real estate agent interchangeably, however, this is not appropriate or correct. There are many differences between REALTORS® and real estate agents. The names alone are similar. Although both are licensed to sell and or list real estate, the basic difference between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Therefore, the main difference that we hear a lot about and might be confused by is that a REALTOR® must subscribe to the Realtors Code of Ethics. But what does this mean to you as the consumer or client of either?
The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice.
These are not ‘suggestions’ but rather rules that REALTORS® are sworn to uphold and adhere to at all times under all circumstances. The Standards are much more restrictive and confining as to conduct than those governing ‘real estate agents’ who simply hold a real estate license. Of course, there is no guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, it is a goal set by the industry to regulate and of course deserves recognition.
Here are 17 things that a REALTOR® promises, that a ‘real estate agent’ is not sworn to.
1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.
2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.
3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.
4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.
5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.
6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.
7) Shall refuse fees from more than one party without all parties’ informed consent.
Shall not co-mingle client funds with their own.
9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.
10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.
11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.
12) Must engage in truth in advertising.
13) Shall not practice law unless they are a lawyer.
14) Shall cooperate if charges are brought against them and present all evidence requested.
15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.
16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.
17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.
The National Association of REALTORS® was founded in 1908 and has more than one million members






