Many people have heard the term REALTOR® and often think it is synonymous with a real estate agent. Most REALTORS® are licensed to sell real estate but not all people licensed to sell real estate are REALTORS®.
You may be thinking, so what is the difference? In general A REALTOR® is person who is licensed to sell real estate and has agreed to follow a code of ethics and a standard of practice as determined by the National Association of REALTORS®.
Areas that are addressed in the code of ethics are: Promotion of Client’s Interest, Misrepresentation, Cooperation, Property Disclosure, Disclosure of REALTOR’S® interest (ownership in the property), Rebates, Compensation, Commingling of Funds, Written Real Estate Agreements, Discrimination, Specialization or lack of, Advertising, Practicing of Law, State Board and Association Tribunals, False or Misleading Statements Regarding Competitors, Representation, Disputes and Arbitration.
(The specifics regarding these areas can be found here: REALTOR® Code of Ethics.)
So the question is when you are putting your team of professionals together to assist you in carrying out your asset accumulation plan, do you want someone who has agreed to follow a strict code of ethics, or someone who has not agreed to any formal ethical code or standard at all? The choice is always yours to make. Ask, inquire and find out the details of the professional that you are considering.
Being creative in real estate can easily be done by following ethical guidelines. Investing and operating with ethical guidelines creates an even better scenario. When everyone involved in the transaction understands the details it truly becomes a win-win transaction.
