Attached is a white paper that was posted on REALTOR.org earlier this year soliciting input from members on Article 12. Please note that the proposal shown below was subsequently amended to what was considered by the Professional Standards Committee, Board of Directors and the Delegate Body last week. Please let me know if you don't have the new wording for Article 12 that goes into effect January 1 or if you have other questions.
Cliff Niersbach
Scope and Focus of Article 12
Summer, 2007
Members of the Professional Standards Committee and other interested REALTORS®, association executives and staff specialists are encouraged to provide feedback on conceptual amendments to Article 12, which will be considered by the Interpretations and Procedures Subcommittee at their next meeting scheduled for this September 2007.
Background
As part of the Professional Standard Committee’s ongoing consideration of Internet–related issues the Interpretations and Procedures Subcommittee, at its March 2007 meeting, gave further consideration to the Report and Recommendations of the Joint Work Group of the Interpretations and Procedures Subcommittee and the Multiple Listing Issues and Policies Committee (December 11-12, 2005). While the Subcommittee discussed a variety of issues, this paper focuses on Article 12, and is intended to give readers an overview of the issues and to solicit thoughtful input from REALTORS® and association executives that could be considered by the Subcommittee.
In considering the new Standards of Practice related to Article 12 adopted effective January 1, 2007, the question has been raised whether Article 12, as currently worded, is broad enough to address all types of REALTORS®’ communications (including communications made electronically), or whether the phrase “advertising and representations to the public” is understood by REALTORS® as applying only to their advertising and marketing activities? It was the initial consensus of the Subcommittee that Article 12, as currently worded, may be viewed as relating primarily to advertising and marketing activities, and that broader, more encompassing ethical direction guiding all forms of REALTORS®’ communication may be desirable. The Subcommittee believed the fundamental message to be communicated to both REALTORS® and to the public should be:
REALTORS® shall be honest and truthful in all real estate communications. To the extent practical, their status as real estate professionals shall be readily apparent in such communications.
The Subcommittee first concluded this principle might most effectively be communicated in a separate new Article. With that as a starting premise, the discussion turned to the possible wording of a proposed new Article; to possible amendments to Article 12; to which existing Standards of Practice related to Article 12 should continue to interpret Article 12, and how those Standards of Practice might be clarified; and which concepts embodied in the existing Standards of Practice related to Article 12 might be recast as Standards of Practice related to the proposed new Article.
Conceptual Amendments to Article 12
However, after further consideration, the Subcommittee determined that REALTORS®, the public, and the Code of Ethics would likely be better served by clarifying and expanding the scope of existing Article 12, rather than creating a separate, new Article. It was then moved, seconded and carried that action on the following proposed amendments to Article 12 be delayed until the September, 2007 meeting so the substance of the Subcommittee’s discussions could be shared with the Professional Standards Committee at the 2007 Midyear meeting, and so that the Committee’s input could be incorporated into the Subcommittee’s final recommendations (underscoring indicates additions, strikeouts indicate deletions):
REALTORS® shall be careful at all times to present a true picture in their advertising and representations to the public. REALTORS® shall also ensure that their professional status (e.g., broker, appraiser, property manager, etc.) or status as REALTORS® is clearly identifiable in any such advertising. (Amended 1/93)
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations. To the extent practical, their status as real estate professionals shall be readily apparent in their communications and clearly identifiable in their advertising.