What is a REALTOR®?
A REALTOR® is a licensed real estate professional who is a member of the National Association of REALTORS® (NAR), an organization that advocates and oversees practicing standards through a stringent code of ethics. Not all licensed real estate agents are REALTORS®, as applications and adherence to the NAR’s ethics are required to earn and maintain this designation.
Key Features of a REALTOR®
- Membership: To become a REALTOR®, one must be admitted as a member of local and state real estate boards and ultimately to the National Association of REALTORS®.
- Code of Ethics: REALTORS® adhere to a defined code of ethics and standards of practice that ensure commitment to trustworthiness, confidentiality, and dedication to customer satisfaction.
- Training and Education: They participate in periodic training and continuing education as mandated by NAR to stay updated on industry trends, laws, and ethical practices.
Examples
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John—the Ethical Agent: John is a licensed real estate agent who joined his local real estate board and the NAR to become a REALTOR®. Despite being a tech-savvy agent able to promote properties aggressively, he prioritizes ethical behaviors, such as full disclosure and fair dealings, enhancing his reputation and client trust.
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Sandra—the Educated Agent: Sandra actively pursues educational opportunities provided by NAR, such as seminars on the latest regulations in the industry. Her designation as a REALTOR® demonstrates her commitment to maintaining the highest professional standards.
Frequently Asked Questions (FAQs)
How does one become a REALTOR®?
To become a recognized REALTOR®, an individual must:
- Obtain a real estate license.
- Become a member of a local real estate board.
- Apply to the National Association of REALTORS® and agree to adhere to its code of ethics.
Is there a difference between a real estate agent and a REALTOR®?
Yes, while both real estate agents and REALTORS® are licensed to sell property, only those who join the NAR and commit to its ethical guidelines can call themselves REALTORS®.
What advantage does hiring a REALTOR® provide?
Hiring a REALTOR® gives advantage of assured ethical commitment, specialized training, and expertise in the industry that abide by the fair dealing policies and client confidentiality practices.
What is the Code of Ethics?
The Code of Ethics is a comprehensive list of minimally acceptable professional behaviors aimed at providing a framework to advocate for public trustworthiness and integrity in real estate practices.
Related Terms
- Real Estate Agent: A professional authorized to act as a sales agent for the sale or purchase of real estate properties. They may or may not be REALTOR®-affiliated.
- Broker: A real estate professional who has a higher level of certification and may oversee one or more agents.
- MLS (Multiple Listing Service): A database service used by REALTORS® to list properties and find buyer offerings.
- Dual Agency: When a real estate agent represents both the buyer and seller in a transaction.
Online Resources
References
- National Association of REALTORS®. (2023). About NAR. Retrieved from NAR.
- Harry, L. (2023). What it Means to be a REALTOR®. Real Estate Journal, Vol. 19, Issue 3.
Suggested Books for Further Studies
- “Real Estate License Exam Prep” by John Reilly: Comprehensive guide to preparing for real estate licensure exams with exclusive focus on obligations of REALTORS®.
- “Your First Year in Real Estate” by Dirk Zeller: Practical insights aiming to acclimate new agents to foundational concepts, including adherence to NAR standards.
- “The Millionaire Real Estate Agent” by Gary Keller: Defines practical steps and ethical frameworks necessary to build a successful real estate career leveraging the REALTOR® designation.
