The REALTOR® Code of Ethics
in a Social Media World
3 Hours of Continuing Education Credits
___________________________________________________________________________________
Class Information:
All cell phones, tablets and computers must be turned off during class.
No audio or video recording is allowed at any time.
Please be in your seat at the prescribed time.
You must attend all of the class to obtain credit for the course.
If you need to request a reprint of your certificate more than 30 days after the class has ended there will be a $10 fee.
Certificates will be emailed within 10 business days. RECP Instructors have full authority to refuse admittance or registration
Use this handout to follow along and take notes.
Module 1: 1.) Is Social Media in the Code of Ethics? 2.) The Preamble to the Code of Ethics 3.) Specific Posting Examples
Module 2: 1.) Friend or not? Protecting information 2.) Code of Ethics, review specific articles 3.) Case study interpretations 4.) General policies
Module 3: 1.) Professional Standards Process 2.) NAR Code of Ethics 3.) Arbitration & Mediation 4.) Case Study
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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Module 1 Agenda: 1.) Is Social media in the Code of Ethics
2.) The Preamble to the Code of Ethics
3.) Specific Posting Examples
Who is doing social media?
Lots of people!
More mainstream
Promote yourself and your business
Use Social Media responsibly
Are you social?
Privacy
(TMI) Too Much Information
Sharing confidential information
“Friend” or “Un-Friend”
Safety issues
Post in haste, repent at leisure
Security Settings
What can strangers see?
Who can see your posts?
Review all security settings regularly
Could criminals use this data?
What bugs you?
Trivial comments
Games and game invites
People trying to access your personal information
Spam
False accounts
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
4 Real Estate Certification Program Copyright 2014 www.recp.org
Social Media Behavior
sss
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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Module 2 Agenda: 1.) Friend or not? Protecting information
2.) Code of Ethics, review specific articles
3.) Case study interpretations
4.) General policies
Friend or not?
Should you accept a friend request from a competitor?
How should you respond
Online REALTOR® Groups
Question is posted
Active member replies with inaccurate information
What do you do?
Blog
A friend is active online and writes blogs regularly
Competitor has cut/pasted content without attribution
Copyright violation
Negative Posts on Your Page
A friend who is not in the industry posts something derogatory about their REALTOR®
on your Facebook page
What do you do?
Professional Designations
An officemate has earned several designations
He told you he quit paying his dues because of the expense
His advertising reference all of the designations
Is this a violation?
Business Ethics
License Law
Code of Ethics
Company policies
Individual moral values
Business ethics and legal standards
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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Structure of the Code of Ethics
Preamble
17 Articles
Standards of Practice
Only Articles may be violates
Standards of Practice
Support interpret and amplify each article
Ethics complaints may only cite a Standard of Practice in support of a violation
Article 1: Honesty
SOP 1-6
Official Case Interpretations
Fact situations for which each Article and/or Standard of Practice of the Code are
applied
May not be charged, but may be cited in support of an alleged violation
Quick Rundown of the Code of Ethics
Article 1: Honesty
Article 2: Misrepresentation
Article 3: Cooperation
Article 4: True position
Article 5: Present or contemplated interest
Article 6: Compensation with consent
Article 7: Compensation from two parties
Article 8: Escrow
Article 9: In writing
Article 10: Fair housing
Article 11: Competency
Article 12: True picture in advertising
Article 13: Do not practice law
Article 14: Cooperate with professional standards
Article 15: Do not lie about other REALTORS®
Article 16: Respect established relationships
Article 17: Arbitrate, do not litigate
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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Article 12
Truth and honesty in all real estate communications
Be honest and truthful
Present a “true picture” in advertising, marketing, etc.
Ensure that your status as a real estate professional is readily apparent in all
representations
No Blind Advertisements
Any display, classified advertising, signs, Internet advertising or business cards that carry
a broker’s name must contain the name of the broker company with whom the broker is
associated, and said broker company’s name must be clearly visible.
All advertising shall be under the direct supervision and in the name of the broker
company.
Article 16
Its central premise is that a REALTOR® shall not engage in any practice or take any action
which is inconsistent with the agency or other exclusive relationship that other
REALTORS® have with clients.
Standard of Practice 16-9
Requires REALTORS® to make reasonable efforts to determine whether the client is
subject to another current, valid, exclusive agreement prior to the REALTOR® entering
into an agency agreement or other exclusive relationship with the client.
Standard of Practice 16-13
Sets out the obligation not to deal with another REALTOR®’s client who is subject to an
exclusive agreement unless the client’s agent or broker gives consent or unless the
client initiates such dealings.
Things to Avoid in Blogs
Rants and tirades
Politics
Religion
Sex
Profanity
Libelous statement
Brokerage Policy
What does the Policy Manual require?
Who manages the company web and social media pages?
Does a blog need to be reviewed before posting?
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
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Other Issues
“Failure to supervise”
Advertising
Communication with clients, customers and the general public
File and email organization
Ethical, lawful or not?
1. Listing agent forwards email with seller’s bottom line to buyer’s agent.
2. Cooperating agent emails all the emails from the ‘diva’ to a third party with
comments.
3. Broker says to agent: “Blind copy me and the attorney on all those emails.”
4. Buyer’s agent forward email with buyer’s top price to seller’s agent.
Policy & Procedure Manual
Privacy policy
Blogging policy
Individual website policy
Social media policy
Main company website
Module 3 Agenda: 1.) Professional Standards Process
2.) NAR Code of Ethics
3.) Arbitration & Mediation
4.) Case Study
IAR Shared Professional Standards Program
Function
o Handles cases for most local associations
o Began in January 2014
o 28* out of 32* local associations have opted in (*this number may change yearly)
Purpose
o Creates impartial and unbiased hearing panels
o To promote consistence, competency, and cost savings to local associations
Violations of the Code of Ethics
Anyone may file an ethics complaint
A complaint may allege a breach of duty owed to the client, owed to other REALTORS®,
and/or owed to the public
Complaints filed should not be frivolous or unsubstantiated
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
9 Real Estate Certification Program Copyright 2014 www.recp.org
Filing a Charge
Charge must read as an alleged violation of one or more articles
SOP may only be cited in support of the charge
Preamble is aspirational only
Establishes obligations for which REALTORS® may be disciplined
Code of Ethics Article 1
The most charged article
Establishes the obligation to treat all parties honestly
Code of Ethics Article 3
The most violated article
Cooperation with other brokers
Code of Ethics Article 12
One of the most charged articles
Honesty and truthfulness in advertising and marketing
A Duty of REALTOR® Membership
Abide by the Code of Ethics of the National Association of REALTORS®
Abide by the bylaws of the association and its rules and regulations
Submit to arbitration disputes and to abide by the arbitrators award
Filing an Ethics Complaint
Must be filed within one hundred eighty (180) days from the time a complainant knew
that potentially unethical conduct took place
17 Articles and accompanying Standards of Practice
Complaint should include a narrative description of the circumstances
The complaint must cite one or more of the 17 Articles of the Code
Hearing panels decide if the articles were violated
Form #E-1: Must state a violation of an article not a standard of practice
Grievance Committee Process
Ethics Complaint
o Grievance Committee performs a review and screening function
o They do not conduct hearings
o Question: “If the allegations in the complaint were taken as true on their face, is it
possible that a violation of the code of ethics occurred?””
Arbitration Request
o Commission disputes, Contractual disputes
o Between REALTORS® associated with different firms
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
10 Real Estate Certification Program Copyright 2014 www.recp.org
o Question: “If the allegations in the complaint were takenas true on their face, is the
matter at issue related to a real estate transaction and is it properly arbitral, i.e. is
there some basis on which an award could be based?”
A Grievance Committee May
Dismiss the complaint
Return the complaint to the complainant indication that the matter should be arbitrated
Send the complaint on to a Hearing Panel of the Professional Standards Committee
Representation at a Hearing
Represented by legal counsel or by a REALTOR®
The term ‘Counsel’ refers to an attorney or a REALTOR®
Only a licensed attorney may act as counsel in an arbitration proceeding
Role of Counsel: opening/closing statements, examining/cross-examining witnesses,
introducing affidavits, documents and other evidence
Attendance: the parties’ and the parties’ counsel and/or witnesses, the REALTORS®
Managing Broker
Discipline
Letter of warning
Letter of reprimand
Education
Fine not to exceed $15,000
Probation for one year or less
Severe Discipline
Suspension from board membership for not less than 30 days nor more than one year, or a fine of $5,000 in lieu of suspension
Expulsion from board membership for one to three years
Suspension or termination of MLS privileges
One Final Word
Many ethics complaints result from misunderstanding or a failure in communication
Before filing an ethics complaint, make reasonable efforts to communicate with your
real estate professional or managing broker in the broker company.
If these efforts are not fruitful, the local association of REALTORS® can give you the
procedures and forms necessary to file an ethics complaint.
Standard of Proof
Arbitration process: Preponderance of the evidence – more likely than unlikely
Ethics process: Clear, strong and convincing evidence that an ethical violation occurred
Arbitration Requests
REALTORS® must arbitrate contractual and specific non-contractual disputes, as defined
by SOP 17-4
Clients may invoke mandatory arbitration with their REALTORS® in accordance with
association regulations.
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
11 Real Estate Certification Program Copyright 2014 www.recp.org
REALTORS® are obligated to cause their firm to arbitrate
Request and Agreement to Arbitrate Form
Arbitration Awards
The award of the Panel in an arbitration case can be judicially enforced if not paid by the
non-prevailing party
Payment of the awards are deposited (with IAR SPS if opted in), pending review of the
hearing process or during legal challenge
Procuring Cause – Who gets the commission?
There is no predetermined rule for entitlement
o No “contract” rule
o No “threshold” rule
Determinations are based on all facts and circumstances related to each particular
transaction
Basis For Award: Procuring Cause – A broker will be regarded as the “procuring cause”
of a sale… if his efforts are the foundation on which the negotiations resulting in a sale
are begun. (Black’s Law Dictionary, Fifth Edition)
Mediation
Disputing parties meet with a mediator
Create a mutually acceptable resolution
Mandatory mediation if opted into the state program
Mediation before arbitration
Mediation will be offered or mandated prior to arbitration
Parties can leave the mediation process at any time
Parties have complete control over the outcome
It is not an adversarial proceeding
Success rate is generally 90%, win-win
If a dispute is resolved in mediation, the parties sign an agreement spelling out the
terms of the settlement, and no arbitration hearing is held.
Gift of Vision
Familiarize yourself with all of the important articles in the Code of Ethics
Be clear and ethical in your real estate business
The Code is a gift of vision by the industry
Legal Hotline
The Legal Hotline is available to Managing Broker members and their designated agents
o Call: 800-444-5472
o Complete the online form
The REALTOR® Code of Ethics in the Social Media World (3 CE Credits)
12 Real Estate Certification Program Copyright 2014 www.recp.org
Thank you for attending the course!
Connect with RECP online.
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