Realtor versus Real Estate Agent
Ever wonder why some people say Realtor versus real estate agent?
(by the way, it is not pronounced real-a-tor. It is simply pronounced as: real-tour. Two syllables, not three.)
There is actually a big difference between a real estate agent and Realtor.
Both are able to conduct a real estate transaction so if you have someone that you prefer to use who is not part of the association, it’s still all good. Just make sure they are licensed to practice real estate. According to the National Association of Realtors (NAR), about half of all real estate agents in the United States are certified Realtors.
Is Realtor Always Capitalized?
The word “Realtor” is always capitalized, as the term has been trademarked by the National Association of Realtors. In 1916, the NAR coined the term “Realtor” as a way for members to distinguish themselves from non-members, later obtaining a copyright and trademark in 1950. The trademark is still upheld by the U.S. Patent and Trademark Office today.
Why Did I Join?
The reason I decided to pay the dues and join the NAR and TR (Texas REALTORS) is the network of support, high standards and the ability to use our influence to bring about positive housing changes. Yes, there are fees and obligations, but to me, it is worth it.
For example, real estate agents were deemed essential during the quarantine and in the majority of states, were allowed to work. This was able to happen thanks to the lobbying and influence the association has in government.
The high ethical standards are part of the core of being a Realtor. In order to protect the public from bad agents, the rules are set to be strict. Agents can lose their license for a period of time, be forced to pay hefty fines and even lose their license forever.
The National Association of Realtors (NAR) created the Code of Ethics as an enforceable set of ethical guidelines that realtors must uphold, and are strictly enforced by real estate boards. It states realtors’ duties to clients and customers, the public, and to other realtors, which are more limiting than state guidelines.
The Code of Ethics
The Code of Ethics is made up of 17 articles that cover different areas of professional standards of practice that must be upheld. Articles one through nine make up a Realtor’s duty to their clients and customers. Articles 10 through 14 state a Realtor’s duty to the public. And Articles 15 through 17 define a Realtor’s duty to other Realtors.
The following are summaries of the ethical duties realtors promise to abide by:
17 Articles
- Promote their clients’ interests before their own and treat all parties involved honestly.
- Avoid exaggerating, misrepresenting, or withholding facts about the property or transaction that are within the scope of their real estate license.
- Cooperate with other brokers when it is in their client’s best interest.
- Disclose with their client if they are working with another member of their existing client’s family.
- Avoid providing professional services regarding a property they have an interest in, unless it is disclosed to the client.
- Receive the client’s consent and knowledge before accepting any form of payment or commission.
- Disclose to all parties and receive consent from their client if a payment is to be received from more than one party involved in a transaction.
- Keep personal funds and clients’ funds separated.
- Ensure all agreements are clearly and understandably communicated between all parties involved in a transaction, and that each party receives a copy of each agreement.
- Refrain from discriminating against any person based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
- Competently abide by standards of practice in their real estate discipline, and do not provide services they are unqualified for.
- Remain truthful in their advertising and marketing materials.
- Do not practice law if they are not authorized to do so.
- Present all evidence and cooperate if charged with unethical practice.
- Refrain from making false or misleading statements about other real estate professionals.
- Do not interfere in another realtor’s contractual relationships.
- Handle disputes with other realtors through arbitration instead of litigation.
As a trade association, the NAR has strong bargaining power in both state and federal governments. This influence can be used to obtain better legal protections and benefits for Realtors across the country.
Choose a Realtor
If you made it through all of these, thank you! These are very important to me and I know my fellow Realtors feel the same. We hold ourselves to a higher standard and when you work with one of us, you can be assured, these are at the core of our transactions and our interactions.
While no agent is perfect, I highly recommend working with a real estate professional with the Realtor designation. It doesn’t have to be me, but choosing a Realtor can provide you with the peace of mind to know the highest standards are being implemented.
Take care, y’all!