by Pat Breme
Article 4 is straight forward, as a REALTOR® you must disclose ownership/interest/family ownership in a property to all parties in writing prior to the signing of any contract. Bottom line is REALTORS® have to disclose their relationship in the transaction if they are related to the parties involved or have any type of interest.
As in Article 4, REALTORS® are obligated to disclose to all affected parties, but in Article 5 the disclosure is for present or contemplated interest in a property.
Read below for the full Articles 4 & 5 of the REALTOR® Code of Ethics
Article 4 (Case Interpretations for Article 4)
REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00) [listen]
- Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)
Article 5 (Case Interpretations for Article 5)
REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. [listen]