Hot Topic Violations

With the changing market, real estate practitioners representing sellers face new challenges marketing their listings. Some have engaged in the practice of relisting or “churning” a listing. The following legal article addresses this subject and some of the related problems and issues.

The Code of Ethics has been amended in the past two years primarily to address online advertising and actions. It is pretty clear by reading through Article 12 and the related Standards of Practice that our obligation to present a "true picture" in our advertising applies to every aspect of our online presence. The Preamble was amended in 2007 to clarify that we pledge to observe the Code in all of our activities whether conducted personally, through associates or others, or via technological means.

MLS Rule 12.8 prohibits advertising any listing, including REO properties, without permission from the broker who owns the listing.

Distressed properties have become an increasing segment of the current real estate market. Currently, 35% of our MLS listings are either an REO or Potential Short Sale property. To ensure that Buyer and Seller Agents are complying to the rules, we have created a comprehensive chart of common infractions for distressed property transactions and the MLS Rule and/or NAR Code of Ethics Article that they might violate. In addition to citing the action and rule, we have also added notes that highlight exceptions or clarify potential infractions.