AT ITS CORE, the Realtor® Code of Ethics asks Realtors® to observe the Golden Rule: “Do unto others as you would have others do unto you.”

Article 1 essentially requires Realtors® to treat all parties honestly and act in the best interests of their clients. In reality, the 17 Articles of the Code of Ethics do not require anything of Realtors® beyond business practices that make them the most successful and ensure that they provide the best service to their clients.

“A few bad apples spoil the bunch,” says 2020 vice chair of the NVAR Grievance Committee, Rob Wittman. “When Realtors® behave unethically, it affects the reputation of the industry as a whole.”

While continuing to provide the education and resources NVAR members need to be successful in their businesses, we must also acknowledge the reality that mistakes do happen.

NVAR has the duty to enforce the Code of Ethics, the Regional Rules and Regulations for the SentriLock Lockbox System and the NVAR Bylaws through the association’s complaint process.

However, there are many ways to ensure professionalism in the industry, including the Citation System.

The most frequently cited complaints involve unauthorized access to properties and advertising disclosures. Realtors® frequently receive citations for providing access to properties without an appointment, or for sharing a Mobile Access Code or their SentriCard to allow their clients to access a property without the Realtor® present. The most commonly cited advertising disclosure rules include failing to include the brokerage name in advertising, using another agent’s photos without securing permission, and generally failing to present a true picture in their advertising.

In the past three years (2017- 2019), NVAR has received 330 ethics complaints. Of those complaints, approximately one-third were dismissed by the Grievance Committee. This left NVAR with over 200 complaints to process in accordance with established due process procedures.

While it is possible for NVAR to rely solely on ethics hearings to resolve complaints, those hearings involve considerable amounts of time from parties, volunteers, and staff. When the association has a high number of complaints, it may take months before an ethics hearing is scheduled. Parties may submit documentation and evidence, secure counsel and call witnesses. The hearing decision, made by members of NVAR’s Professional Standards Committee, is based upon whether there is clear, strong and convincing evidence of a violation. If a Realtor® is found in violation, they may be issued a letter of warning, required to attend educational sessions, and/or issued a sanction up to $15,000 (depending on the nature of the complaint and the number of violations previously committed by the Respondent). This process, while burdensome, is a necessary one that protects members of the public and the reputations of all Realtors®.

However, there are more efficient means for Realtors® to acknowledge a mistake without going through the entire ethics complaint process. Enter the NVAR Citation System.

This system ensures that certain complaints can be adjudicated in one month or less without requiring parties to attend a hearing.

Such a system also provides the Realtor® found in violation with relevant education and a fine that is appropriate for the bad action without causing serious harm to their livelihood.

The original Citation System was adopted by the NVAR Board of Directions in 2010 and has been updated several times since. This system provided that Realtors® who had committed certain violations pay a citation and a smaller administrative fee ($150) than was required by Realtors® found in violation via a hearing ($500).

ARTICLE/STANDARD OF PRACTICE		1ST VIOLATION	2ND VIOLATION	3RD VIOLATION
3, SOP 9	A cooperating broker providing access to listed property on terms other than those established by the owner or the listing broker	$1,000*	$1,500**	$2,500**
12	Failure to present a true picture in real estate communications and advertising	$500*	$1,000**	$3,000**
12	Failure to disclose status as a real estate professional in advertising or other real estate communications(A)	$500*	$1,000**	$3,000**
SentriLock Policy IV.L	Shall not allow anyone who has been admitted to the property by Holder to remain in the property after Holder has left the property without consent of the property owner(s)	$1,000*	$1,500**	$2,500**

Short section of citation system (Article 3-9, SentriLock Policy IV.K, Article 12) To review the upgraded Citation System in its entirety, please visit nvar.com/citation

In the past three years, the NVAR Grievance Committee issued citations in approximately one-third of the complaints received. The vast majority of Realtors® have opted to participate in the Citation System and pay the citation without requesting a hearing. The Citation System has been valuable to members who want to address their mistake, learn from it, and move on. It has also been instrumental to NVAR’s ability to provide an efficient ethics complaint process by reducing the number of complaints that require a hearing by more than 100 cases.

Both in his position as vice chair, and as an experienced broker, Wittman finds the Citation System to be an effective tool to support NVAR’s professionalism efforts.

“It is effective. The problem is the lack of use – there is an impression that filing complaints is a complicated and onerous process,” Wittman says.

SYSTEM UPDATES

Following valuable feedback from NVAR members, volunteer leaders on the Grievance Committee, and parties to prior ethics proceedings, NVAR was determined to address two common concerns with the Citation System.

First, it was important to acknowledge that mistakes do happen and that most violations of the Code of Ethics are based in ignorance. Under the previous Citation System, a Realtor® could be issued over $2,000 in fines and fees for sharing a Mobile Access Code with another party. This is an expensive lesson. Second, many members report that it is still important for NVAR to hold bad actors accountable and that a violation and fine could be seen as a cost of doing business if the citation amounts are too low for repeat offenders.

The NVAR Board of Directors addressed both issues in 2020 by approving extensive updates to the system. Effective July 1, 2020, the Citation System has been expanded to make more potential violations eligible. First-time violators are issued a reasonable citation, and in most cases, they will have the ability to reduce their citation by half if they attend an NVAR-approved course on ethics and professionalism. Repeat violators will face increased citations and mandatory education. The Grievance Committee generally still has the discretion to forward complaints to ethics hearings where the Realtor® is a repeat offender.

It is a team effort between Realtors®, their brokers, and NVAR to provide relevant education and uphold the highest standards of professionalism.

The Citation System provides more predictable and efficient outcomes for parties involved in a complaint. It also provides potential complainants with the opportunity to report bad behavior without (in many cases) being required to participate in the ethics complaint process. NVAR continues to encourage parties to work through these issues outside of the complaint process – an apology can go a long way – but that is not always possible.

Your reputation is vital to your business. The NVAR Professional Services team strives to work with our members to protect the reputations of all Realtors® and instill the trust in clients and customers that is so important to your success.

“Realtors® are a unique workforce and supervision is the foundation for this business. A laser focus on professionalism right now is as critical for this business as is exceeding financial goals. If we cannot commit to increasing standards when we see violations, someone else will,” says Wittman. With your support, the upgraded NVAR Citation System will help us do just that.



Stevie Fisher is the NVAR associate director of professional services.