REALTORS® v/s AGENTS

For many, the two terms “Realtors® and Agents” mean the same thing!

Actually, that’s not the case.

People tend to use the term Realtors® and real estate agents interchangeably, but that is incorrect.

These two words which are spelt differently and sound different also have different meanings!

Although both terms are licensed to sell real estate, the basic difference is that a Realtor® is a member of the National Association of Realtors® while a real estate agent is not.

The National Association of Realtors®, was founded in 1908, and has more than 1 million members all over the world. These Realtors® are expected to subscribe to the Realtor® Code of Ethics.

The Realtors® code covers ethical requirements that deal with all the aspects of the job, from working with consumers and fellow agents to writing truthful advertising. This code is strictly enforced on Realtors® and contains 17 articles and standards of practice.

While there is no evidence or guarantee that all Realtors® are morally or ethically better than real estate agents, it is an attempt by the industry to regulate and monitor the events and happenings of the real-estate industry.

Here is a list of certain noteworthy things that a Realtor® can / cannot do that normal real estate agents generally are not seen adhering to :-

1) They have to take a pledge stating they will always put the interests of their customers and buyers or sellers before their own and address them with honestly and integrity.

2) They must not exaggerate / brag / misrepresent or conceal any important facts while the process takes place.

3) They must be cooperative with other brokers / agents when it is in the best interests of the client to do so.

4) They cannot provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

5) They cannot charge a commission or accept fees from a third-party without the seller's express consent or knowledge.

6) They cannot mix their funds with their client’s.

7) They must ensure that all documentation regarding the deal is comprehendible and easily accessible to clients.

8) Members cannot discriminate against someone on the basis of race, color, religion, sex, handicap, familial status, or national origin.

9) Realtor® must be competent, must conform to standards of practice and must not under any circumstances provide services they are not qualified for.

10) Must be honest about advertisements and listings. 

11) Must not practice law unless they are a lawyer and must cooperate if charges are brought against them by another individual.

12) They also cannot solicit another Realtor’s® client(s) nor can they interfere in a contractual relationship.