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December 4, 2009






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REALTORS® Want Wrongdoers Named

REALTOR® magazine, the house organ for the 720,000 members of the National Association of REALTORS®, will report in its May issue that 90 percent of members responding to a poll would like to see the names of Code of Ethics violators published so that consumers and fellow professionals can readily identify wrongdoers.

The overwhelming response is additional evidence that the once-cloistered industry is opening its doors to the public, and comes at a time when more members of the public are questioning the value of a real estate professional.

In its April issue, REALTOR Magazine asked subscribers "Do you want the names of ethics violators in your community published?"

NAR officials say more than 400 readers responded to the poll and at least 90 percent believe the names should be released. Final tabulations will appear in the May issue.

In the past, names of Realtors found guilty of Ethics violations were not released. Consumers had little chance of finding out the background of the agents they engaged, and even professionals only learned of disciplinary actions via word of mouth.

Trade association leaders said they were fearful of naming names because of the possibility of legal retribution. Other insiders, however, suggest the real fear was that two grievance panels looking at the same kind of evidence against two different members, one a top producer and the other a marginal player -- could very well come up with the two different decisions.

Publishing the names and the grievances, officials now say, could ultimately lead to more consistent findings and more uniform punishments.

Support for publishing names, primarily in local board publications but inevitably in the popular press as well, appears to be another step toward giving Realtor members professional credibility.

Many feel that naming wrongdoers will have the effect of both rooting out "bad apples" and polishing the Realtor images as self-policing, not unlike bar associations and medical societies.

The special Realtor committee already has made a similar recommendation that names of wrongdoers be disclosed under special circumstances, such as having two guilty decisions lodged against a member over a three year period.

Steve Hoover of Roanoke, Va., who was a member of that committee, conceded that publishing names could prove to be more embarrassing than punishing.

"It may well be an embarrassment," he said. "But the moral is: Don't do it. You may violate the Code once because of a slip up. That happens. But if it happens twice in a one year period, or in a two year period, then we think that's a problem."

Depending on the violation, Realtors could receive anything from a reprimand to a fine to expulsion from the organization.

Violations of the Code of Ethics do not carry the weight of law.

However, for years state real estate departments nationwide have published the names of licenses have been suspended.

Those lists traditionally have appeared in department bulletins distributed to licensees. Now, however, many state real estate departments have begun posting the names of license law violators on their Web sites, for the first time giving the public easy access to a licensee's record.

Published: April 21, 1999

Use of this article without permission is a violation of federal copyright laws.










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