REALTOR® or Real Estate Agent?

REALTOR® or Real Estate Agent?

What's the Difference?

Not all real estate agents are REALTORS®. A REALTOR® is an individual licensed by the State of Michigan to list & sell real estate AND is also a member of a local board/association of REALTORS®, the state association of REALTORS® and The National Association of REALTORS® (NAR).

When agents become REALTORS®, they must agree to conduct their business in a way that adheres to NAR's strict Code of Ethics. A Code of Ethics that goes beyond state licensing requirements and covers ethical requirements that deal with all aspects of the job, from working with consumers and fellow agents to writing truthful advertising.

A REALTOR® is the recognized professional in real estate. The distinctive REALTOR® "R" is your guarantee that you're dealing with the elite of the profession.

Verify an agent's license (from the State of Michigan)

Verify membership of a REALTOR® in the Ann Arbor Area Board of REALTORS®

The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice. It's not just a bunch of rules that agents swear to uphold and adhere to. The Standards are much more restrictive and confining than those governing agents who simply hold a real estate license.

Here are 17 things that a REALTOR® promises to do (simple version. read the entire Code of Ethics):

1. REALTORS® protect and promote their client's interests while treating all parties honestly.
2. REALTORS® refrain from exaggeration, misrepresentation, or concealment of pertinent facts related to property transactions.
3. REALTORS® cooperate with other real estate professionals to advance their client's best interests.
4. When buying or selling on their account or for their families or firms, REALTORS® make their true position or interest known.
5. REALTORS® do not provide professional services where they have any present or contemplated interest in property without disclosing that interest to all affected parties.
6. REALTORS® disclose any fee or financial benefit they may receive from recommending related real estate products or services.
7. REALTORS® receive compensation from only one party, except where they make full disclosure and receive informed consent from their client.
8. REALTORS® keep entrusted funds of clients and customers in a separate escrow account.
9. REALTORS® make sure that contract details are spelled out in writing and that parties receive copies.
10. REALTORS® give equal professional service to all clients and customers irrespective of race, color, religion, sex, handicap, familial status, or national origin.
11. REALTORS® are knowledgeable and competent in the fields of practice in which they engage or they get assistance from a knowledgeable professional, or disclose any lack of expertise to their client.
12. REALTORS® paint a true picture in their advertising and in other public representations.
13. REALTORS® do not engage in the unauthorized practice of law.
14. REALTORS® willingly participate in ethics investigations and enforcement actions.
15. REALTORS® make only truthful, objective comments about other real estate professionals.
16. Respect the exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with their clients.
17. REALTORS® arbitrate financial disagreements with other REALTORS® and with their clients.

Read the entire Code of Ethics.

Read more about what a REALTOR® can do for you.