Code of Ethics

Report
Alabama Real Estate License Law &
The REALTORS Code of Ethics
• In Alabama all licensees must abide by
license law
• Only members of the REALTOR
association subscribe to the Code of
Ethics
Alabama Real Estate License Law &
The REALTORS Code of Ethics
• The Alabama Real Estate Commission is the
enforcing body for license law.
• The local or state REALTOR association
enforces the Code of Ethics as prescribed by
the National Association of REALTOR.
Alabama Real Estate License Law &
The REALTORS Code of Ethics
• Violation of license law can result in fines,
suspension, or revocation of your license.
• Violation of the Code of Ethics can result in
fines, suspension or revocation of your
membership in the National Association of
REALTOR.
History and Background of Alabama
Real Estate License Law
• Alabama license law was
passed in 1951 and has
been amended many
times. The law is Title 34,
Chapter 27 of the Code of
Alabama
History and Background of the
Code of Ethics
NATIONAL
ASSOCIATION OF
REALTORS formed in
1908.
History and Background of the
Code of Ethics
At that time…
• No license laws.
• Real estate industry
had a history of
speculation,
exploitation, and
disorder.
History and Background of the
Code of Ethics
• Code was adopted in 1913 to
establish a professional standard of
conduct.
• Code of Ethics formed the basis for
many license laws.
Major Articles of Alabama
License Law
General Provisions
Licenses
Real Estate Consumer's
Agency and Disclosure
Act
Interference With Real
Estate Brokerage
Relationship
The Three Major Sections
of the Code of Ethics
Duties to Clients and
Customers
Duties to the Public
Duties to REALTORS®
The Structure of License Law
and Administrative Code
• The commission may adopt and enforce
all rules and regulations pursuant to the state
administrative procedure statutes necessary
for the administration of this chapter…
• Code of Alabama 34-27-8(a)
The Structure of the Code of
Ethics
• Three sections
– Broad statements of ethical principles
• Standards of Practice
– Support, interpret, and amplify the Articles under
which they are stated
The Structure of the Code of
Ethics
• Case Interpretations
– Specific fact situations to which the Articles
and/or Standards of Practice are applied
• Only Articles of the Code can be violated,
though Standards of Practice can be cited in
support of an alleged violation
The License Law and/or
Ethics Enforcement Process
• Who can file a
complaint?
The Alabama Real Estate
Commission
• The commission or its staff may on its own, or on the
verified complaint in writing of any person, investigate
the actions and records of a licensee. The commission
may issue subpoenas and compel the testimony of
witnesses and the production of records and documents
during an investigation. If probable cause is found, a
formal complaint shall be filed and the commission
shall hold a hearing on the formal complaint.
The Grievance Committee
• A screening committee comprised of
members of the Association appointed to the
committee.
• Key question for the Grievance Committee:
If the allegations in the complaint were
taken as true on their face, is it possible that
a violation of the Code of Ethics occurred?
Professional Standards
Hearing Panel
• Function is to conduct a full “due
process” hearing with sworn testimony,
witnesses and evidence.
• Hearing Panel is comprised of members
of the Professional Standards
Committee.
Professional Standards
Hearing Panel
• After conducting a hearing, the Hearing Panel
decides whether there was a violation of the Code
of Ethics, proven by clear, strong and convincing
proof.
• If the Hearing Panel finds a violation of the Code
of Ethics, the Panel then determines the discipline
to be imposed on the violator (respondent).
Authorized Discipline
Alabama License Law
• May revoke or suspend a license until such time as the licensee
has completed an approved continuing education course and/or
made restitution to accounts containing funds to be held for
other parties
• May also stay the revocation or suspension of a license and
require completion of an approved education course and/or the
making of restitution to accounts containing funds to be held for
other parties
• Revoke or suspend the license
• Fine not to exceed $2,500
• Reprimand the licensee in each instance in which the licensee is
found guilty
Authorized Discipline
Code of Ethics
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Letter of Warning
Letter of Reprimand
Education
Fine not to exceed $15,000
Probation for one year or less
Suspension for not less than 30 days nor more than one year
Expulsion from membership for period of one to three years
Suspension or termination of MLS privileges
Administrative processing fee (if found in violation) not to
exceed $500 (“Court Costs”)
The Alabama Real Estate
Commission…
• Mission - To serve the public through the
licensing and regulating of real estate
licensees.
• Vision - To ensure excellence in the real
estate profession.
• Values - Excellence in stewardship, service,
innovation, and integrity.
The REALTOR Code of
Ethics …
• protects the buying and selling public.
• promotes a competitive real estate
marketplace.
• enhances the integrity of the industry.
• is your promise of performance.
• is your promise of professionalism.

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