Articles 8 and 9 of the REALTOR® Code of Ethics

 
 
00:00 /
 
1X
 

by Arleen Roberts

Article 8

REALTORS® shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items.

Article 8 is very straight forward, but even so, there are times in which is has been violated. The article states that any funds that you receive to hold in trust for someone else as part of the real estate transaction must be held in an appropriate account, separate from your own funds. So you can’t for instance, take your clients EMD from various sources, deposit it into your personal account, and then write a single check to the other side.

Pretend that all funds you receive to hold in escrow from a client or customer has “Real Estate” stamped across it.  Those funds should never be mixed with your personal funds.  To do so is called commingling which violates both the Code and the law.

 

Article 9

REALTORS®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.

Article 9 says…make sure everything agreed to is written in clear and specific terms, both sides have signed and both sides have received copies.  This is done for the protection of all parties.  This is something that should be paid attention to, and the practice of, would prevent many an issue or complaint.

Lets start with, all agreements are in writing.  Has this ever happened… you speak with the agent on the other side who says on the phone, “of course my client is going to take care of that!” You’re happy, you relay the message to your client.  During walkthrough (hopefully not on closing day), it’s not taken care of.  The other agent says… “My client said no”,  or “I don’t remember saying that.” Getting what was agreed to in writing and signed by both parties, ensures that everyone knows and there is proof of what is expected and has been agreed upon from each other.

Sometimes even getting it in writing still leads to disagreements.  That would be from failing the next part…written in clear and understandable language expressing the specifics.

Something in the body whereby all mean provideth createth issuances by using language, not unlimited to, these and thou’s to … You know what I am talking about…Stop It!

No one speaks (especially since I made up some words much like some of you do (you know who you are)) like that.  So stop writing addenda like that.  Say what you mean using every day language.  Also ask for specifically what you want.  The other agent above final response was…We did patch the hole, you did not say you wanted it painted.

Finally, make sure everyone who is part of the transaction signs and receives a copy.  It provides the record of the agreement and is definitely good business!

 

Read below for the full Articles 8 & 9 of the REALTOR® Code of Ethics

Article 8 (Case Interpretations for Article 8)

REALTORS® shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items. [listen]

Article 9 (Case Interpretations for Article 9)

REALTORS®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing. (Amended 1/04) [listen]

  • Standard of Practice 9-1

For the protection of all parties, REALTORS® shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments. (Amended 1/93)

  • Standard of Practice 9-2

When assisting or enabling a client or customer in establishing a contractual relationship (e.g., listing and representation agreements, purchase agreements, leases, etc.) electronically, REALTORS® shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party. (Adopted 1/07)

Pin It on Pinterest

Share This