PROFESSIONAL CONDUCT

REALTOR® Professionalism

REALTORS® are committed to telling the truth and providing the most accurate information. Honesty and personal integrity are the core values which affect everything they do on their clients’ behalf. To list a few examples:

When listing a property: A REALTOR® will not deliberately mislead the owner regarding the market value. They will provide a market analysis which clearly states the good, the bad and the why they arrived at the recommended list price.

When assisting a buyer/tenant: REALTORS® will not mislead clients regarding possible benefits which may be realized through use of REALTOR® services.

Preserve confidential information: Such as a seller’s need to quickly sell a property. A Realtor® will not share information which could affect price, terms etc., without seller’s knowledge or permission.

When entering into a listing contract: A REALTOR® must disclose company policies regarding cooperation and compensation in dealing with other real estate agents/brokers. The seller needs to understand the brokers policies regarding splitting of commission. Typically, the seller pays commission to listing brokerage at closing; the buying brokerage and REALTOR® are paid a pre-determined percentage of that commission.

Must disclose to both parties’ dual agency: If they are representing the seller and buyer in the same transaction. All parties must agree to the arrangement. For example, if a buyer touring an open house wants to write and submit a contract on the spot, the seller’s agent is permitted to assist the buyer. They will write a contract; however, they must tell the seller when presenting the offer.

All agreements must be clear: And in understandable language expressing the specific terms, conditions, obligations and commitments of the parties. One of the greatest forms of protections and fairness is requiring agreements in writing. All parties acknowledge understanding of a contract or arrangement as evidenced by their signature.

REALTORS® are bound to providing equal opportunity: To their professional services regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity.

The Code of Ethics:

A Commitment to the Public: The Code of Ethics of the National Association of REALTORS® is the promise to the public that when dealing with a real estate agent that is a REALTOR®, you can expect honest and ethical treatment in all transaction related matters.

Only REALTORS® pledge to abide by the Association's Code of Ethics and only REALTORS® are held accountable for their ethical behavior. Boards and Associations of REALTORS® are responsible for enforcing the REALTORS® Code of Ethics. The Code of Ethics imposes duties, above and in addition to those imposed by law or regulation, which apply only to real estate professionals who choose to become REALTORS®.

2023 Code of Ethics

Antitrust policy

LREC

File an Ethics Complaint:

Boards and Associations of REALTORS® are responsible for enforcing the REALTORS® Code of Ethics. The Code of Ethics imposes duties, above and in addition to those imposed by law or regulation, which apply only to real estate professionals who choose to become REALTORS®.

Before you file an Ethics Complaint

General Instructions

Outline of Procedure for Ethics Hearing

File an Ethics Complaint

When is an Administrative Fee due in an Ethics Complaint

Ombudsman Procedures adopted by the New Orleans Metropolitan Association of REALTORS® are intended to provide enhanced communications and initial problem-solving capacity to the professional standards process. NOMAR is charged with the responsibility of receiving and resolving ethics complaints, and hearing arbitration disputes filed against its members. An Ombudsman can respond to general questions regarding real estate practices, transaction details, ethical practices and enforcement issues.

Ombudsman explained

How will I know to ask for an ombudsman?

Many complaints do not expressly allege violations of specific articles of the REALTOR® Code of Ethics and may not concern conduct related to the Code. Some complaints are transactional, technical, and procedural questions that can be readily responded to. Some complaints are due strictly to lack of communication. These types of issues may be appropriate for the Ombudsman program.

What will the Ombudsman not do?

Adjudicate/make the final decision
Give legal advice
Determine who is right or wrong
Disclose communications – Process is CONFIDENTIAL
Make any written record of discussions and/or agreements

Who are the Ombudsman?

REALTORS® appointed to be Ombudsmen must demonstrate objectivity, participate in a training program, and possess extensive knowledge of the REALTOR® Code of Ethics.

How does the ombudsman process work?

NOMAR staff will send the ombudsman request form to the ombudsman via e-mail. The form will include contact information for both parties as well as a written account of the conflict.

The ombudsman will make all necessary contacts in an attempt to resolve the complaint. If the ombudsman efforts are effective, there is no further action necessary. If the efforts are not successful in resolving the complainant’s issues, the ombudsman will advise the complainant about the next step(s) in the complaint process.

Mediation As A Service Of The New Orleans Metropolitan Association Of Realtors® (NOMAR)

Although no party to an arbitrable matter can be required to submit to Mediation and Mediation cannot and is not intended to be a substitute for Arbitration, Mediation can be a useful tool in resolving the conflicts that arise involving Board Members and their clients and customers. Mediation is a viable option in instances where Arbitration would be provided. Mediation can resolve disputes, promote amicable resolutions, and avoid the more formal and complex Arbitration procedures of the Board.

Mediation Explained

Selection of Board Mediation Officer: Conducting a successful Mediation requires tact, diplomacy, and a sense of equity. Careful consideration is given in selecting the Board’s Mediation Officers. NOMAR maintains a committee of up to ten (10) members from which the Mediation Officer is chosen. Individuals serving as a Mediation Officer have extensive prior experience on the Grievance Committee, Professional Standards Committee, and/or Board of Directors, and special training in the Mediation process. The Mediation Officer is thoroughly conversant with the Board’s Arbitration procedures as well as with the real estate rules and regulations of Louisiana. If Mediation Officers are members of the Professional Standards committee, they shall not serve on an Arbitration Hearing Panel in cases where they had initially attempted to resolve the dispute prior to an Arbitration Hearing, or on an Ethics Hearing Panel in cases where an Ethics Complaint arises out of the same facts and circumstances giving rise to a matter they attempted to mediate. The Mediation Officer is someone widely respected for fairness, experience, and impartiality. Only to the degree that all parties to the Mediation can be confident of an impartial determination will Mediation procedures be successful. By having more than one Mediation Officer, assignments are made to utilize individuals whose experience, abilities, and relationship renders him/her most appropriate for that particular assignment.

Mediation Not Mandatory: It must be understood by all parties that participation in Mediation is entirely voluntary. The parties should be offered the opportunity and encouraged to participate in the Mediation process in good faith, and, further encouraged to abide by the determination. The parties to Mediation should be aware that they may withdraw from the process at any point prior to reaching an agreement. Any offers of settlement that were not accepted or any suggested resolution proposed by the Mediation Officer that was not accepted will not be introduced as evidence nor considered in any manner should the matter require Arbitration by the Professional Standards Committee. However, if the parties agree to a settlement of the dispute, and the settlement has been reduced to writing and has been signed by all of the parties, the matter is deemed resolved and cannot be the subject of a subsequent Arbitration Hearing. In the event either of the parties later fails to abide by the terms of the settlement, the matter may not be arbitrated; instead, the other party should be encouraged to have the settlement agreement judicially enforced by a court of competent jurisdiction.

Need for Due Process:Although Mediation is not binding upon the parties, the need for due process remains. Generally, there is no need for the parties to be represented by legal counsel nor will the Board have legal counsel present at a Mediation proceeding. However, since Mediation is an attempt to bring the disputing parties together in an informal setting to resolve their differences, every effort will be made to ensure that the parties are provided with adequate prior notice (at least ten [10] days) and that the time and location of the proceeding is mutually convenient to all involved. However, this requirement shall not preclude parties to a dispute waiving such notice and agreeing to Mediate at any time agreed by all parties.

Initiation of Mediation Proceedings:Each request for Arbitration will be referred to the Grievance Committee for consideration as to whether the matter is appropriate for Arbitration. In the event the Grievance Committee determines that a matter is properly Arbitrable, that information will be provided to the Professional Standards Administrator who will then notify both the Complainant and Respondent that the matter has been deemed Arbitrable and that Mediation is available. The Administrator will inquire of each party as to whether they will participate in Mediation. If both parties respond affirmatively, they will be given a choice of three Mediation Officers and will be contacted to establish a mutually convenient time and location for the Mediation.

Conduct of Mediation Proceedings: If, for any reason, any of the parties (or the Mediation Officer) is unable to participate on the date agreed, the procedure should be rescheduled to the earliest mutually acceptable date. Mediation cannot be successfully conducted without all of the parties present. Witnesses, if any, should be kept to a minimum.

Realizing that a dispute already exists between the parties, the Mediation Officer will make every effort to encourage a conciliatory atmosphere while ensuring a full discussion of all pertinent facts. The Complainant and Respondent will be encouraged to appreciate each other’s position in the matter and to effect a solution that will eliminate the need for Arbitration by the Professional Standards Committee. The parties can agree to a mutual resolution of the matter at any time during the Mediation procedure. If, following a thorough discussion of all the pertinent facts, the parties are still unable to resolve the matter, the Mediation Officer may, at the Mediation Officer’s discretion, then make a recommendation. Any recommendation for resolution can be oral or in writing and will be provided to both parties at the conclusion of the Mediation procedure. The parties can agree to the Mediation Officer’s proposed resolution at that time. If neither of the parties desire to give additional consideration to the Mediation Officer’s resolution, both parties will be given a specified period of time, not to exceed fortyeight (48) hours, to consider the resolution and to advise the Mediation Officer of their acceptance or rejection of it. If either of the parties rejects the proposed resolution, the Mediation procedure will be deemed concluded and the matter will proceed to Arbitration. Any party who does not respond to the Mediation Officer within seventy-two (72) hours will be deemed to have rejected the suggested solution and Arbitration will proceed.

Mediation may be terminated for any reason at any time during the process. The case will then be forwarded on to a Professional Standards Hearing Panel.

Since its' inception in 1913, the Code of Ethics has been the cornerstone of the NATIONAL ASSOCIATION OF REALTORS® and the many local and state Associations. The Code has withstood the test of time and is the basic instrument responsible for setting forth the obligations of REALTORS®. Association membership is voluntary, but compliance with the Code is a condition of REALTOR® membership. Therefore, members are obligated to submit to or participate in proceedings as required in the Professional Standards process.

File a Request for Arbitration

Arbitration is a means of resolving a monetary dispute arising out of a real estate transaction that the parties have been unable to solve themselves. An arbitration request is a simple notice by a member of a disagreement with another member, usually a commission dispute. Sometimes arbitration concerns a dispute between a member of the public and an Association member. Arbitration does not award damages.

Requests for arbitration must be submitted on Form A-1, "Request and Agreement to Arbitrate," be accompanied by a typed "statement of fact," copies of any documents that pertain to the transaction, and a $500.00 filing deposit.

Procuring Cause

General Instructions

Outline of Procedure for Arbitration Hearing

Arbitration Guidelines

NAR Code of Ethics/Professional Standards

Ombudsman explained

Mediation Explained

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