You may or may not have noticed that the real estate industry suffers from an image problem. That problem is one that haunts real estate professionals from the newbie to the seasoned broker. It is the public’s view of our ethical character as a group.

The perception of real estate practitioners as generally unethical is so embedded that the term real estate ethics has been considered an oxymoron by members of the public and often by the profession itself. In fact, according to Gallup polls conducted over the years, real estate professionals have consistently ranked in the lowest third of professions - and often have been ranked 32nd of 32 choices!

In reality, real estate practitioners are no more or less ethical than the average American. In an effort to bring a higher level of dynamic principles and duties to the practice of real estate, the National Association of REALTORS® (NAR) adopted its first code of ethics in 1913. Now, an ethics course every four years is required for continued membership in NAR.

Every real estate professional, whether a member of NAR or not, has the responsibility to act ethically in real estate endeavors. Whether engaged in residential, commercial, property management, appraisal, title or any area of real estate practice the standard you should always use is the highest standard. In addition to creating the professional image and reputation you wish to be known for, it keeps you out of legal trouble.

So, you might ask: “What are “ethics”?” The dictionary definition states that ethics are a set of principles for right conduct or the rules and standards governing the conduct of a person, which would be like NAR’s Code of Ethics. In essence, it’s about doing the right thing. You can develop your own professional code of ethics and post it prominently in your office. Potential clients as well as returning clients will know what to expect in dealing with your office and that you have made a conscious choice to ensure honesty, professional competency and integrity in the practice of real estate.

If you wonder where to start to define your personal principles, as a Rotarian, I can recommend the “4 Way Test” criteria as a place to start:

• Is it the truth?
• Is it legal?
• Is it fair to all parties?
• Is it beneficial to all parties?

NAR’s Code of Ethics breaks into three sections, a brief review:

• Duties to Clients and Customers – When representing a buyer, seller, landlord, tenant or other client as an agent, pledge yourself to protect and promote the interests of your clients.
• Duties to the Pubic - Do not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status or national origin.
• Duties to REALTORS® - Do not knowingly or recklessly make false or misleading statements about competitors, their businesses or their business practices.

As stated above, developing your own personal professional code of ethics in addition to adoption of NAR’s Code, if you are a REALTOR®, will delineate you as a person of high standards exercising the best business practices. This will bring you more clients and other benefits as others relate your professional conduct to their friends and family because that is the kind of treatment the public really wants afterall.