REALTOR^®^ Code of Ethics: Why is it Important for New REALTORS^®^?

Why is it important for new REALTORS^®^ to abide by the Code of Ethics?

a) It's legally binding and mandatory. b) It offers financial incentives. c) It's just a suggestion, not a requirement. d) It's optional for new REALTORS^®^.

Answer:

Ben is correct in his understanding that as a new REALTOR^®^, agreeing to abide by the mandatory Code of Ethics is important.

Ben, having just become a REALTOR^®^, is correct to be glad about agreeing to abide by the Code of Ethics. The correct answer to the question is that the Code of Ethics is a mandatory set of guidelines which he, as a REALTOR, has committed to follow. Much like professional organizations in various fields, including nurses, teachers, and engineers, the Code of Ethics in real estate establishes professional conduct that must be adhered to.

For example, the Institute of Electrical and Electronic Engineers Computer Society (IEEE-CS) adopted a Code of Ethics for software engineers, outlining specific ethical obligations. Similarly, the Code of Ethics for REALTORS^®^ sets forth a standard of conduct and duties to clients and colleagues, which is not merely a suggestion or optional, but a requirement for membership in the National Association of REALTORS^®^ (NAR).