Code of Ethics-Duties to Clients and Customers
Posted in REALTORS Code of Ethics by Karen Rhodes on November 9th, 2006 Standard of Practice 1-12
When entering into listing contracts, REALTORS® must advise sellers/landlords of:
1. the REALTOR®’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
2. the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
3. any potential for listing brokers to act as disclosed dual agents, e.g. buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)
When you sign a listing agreement with a REALTOR® there are certain things the code requires that be known by you up front.
Most of the time, when you agree to pay a marketing fee to your listing agent, your agent will offer a portion of that fee to the agent who works with the buyer. In my case I split the fee down the middle.
The fact that I am paying the buyers agent from the my fee does not mean that agent is working for the seller. In fact, in Tennessee, they will not be working for the seller because we do not practice dual agency. Note: more on agency to come.
