At the mid-year meetings of the National Association of Realtors®, directors approved a budget augmentation for the purpose of developing twenty 4-6 minute videostreamed training modules discussing ethical principles. These will be distributed to local associations and large brokerage firms at no cost, and will enhance the ability of brokers to provide ethics training on site. This noncontroversial action has not received much attention. Nonetheless, it is very good news. Let me try to explain.

The Realtor® community faces an anomaly. (And here we need to distinguish between those real estate licensees who have voluntarily associated with the local, state, and national Realtor® associations, and those who have not.) On the one hand, it is a distinctive part of being a Realtor that one subscribes to the Code of Ethics of the National Association of Realtors. This is a well-developed code that has been in existence since 1913 and is constantly subject to review and revision in order to keep it current and relevant to ever-changing business practices and technologies. All Realtors affirm that they will abide by this Code and its underlying principles.

On the other hand, time and time again, at Realtor meetings and through membership surveys, it is expressed that one of the most pressing issues facing the Realtor community is the fact that the Code of Ethics is widely disregarded. In short, while Realtors may have this code, a lot of them aren't paying attention to it. Why?

There is probably not just one single reason, but it is a safe bet to say that a main one consists in the fact that many agents do not perceive that their firms really care about following the Code. Note: I'm not saying that the firms don't care; I am just saying that agents don't perceive that their firms care.

In fact, you'd be hard-pressed to find a real estate firm that doesn't profess to being committed to a high standard of ethics. Unfortunately, though, you would also be hard-pressed to find a firm that has procedures and programs in place to implement this professed priority.

New licensees look for a firm that will provide training; for there is plenty to be learned after passing the license exam. And, these days, most firms see to it that their new agents get that training. There are classes on prospecting, listing, selling, contracts, disclosures, real estate computer applications, marketing luxury homes, selling foreclosures, buying foreclosures, Feng Shui, and more. But few, if any, firms pay much attention to providing education on professional ethics.

The provision of ethics education has traditionally been a function of the Realtor associations. And this, quite frankly, is fairly minimal. A three-hour course (2.5 hours instruction time) is required at new member orientation; and a similar course is required every four years. While such requirements are admirable, in and of themselves they are unlikely to have much influence on behavior.

It has been argued on these pages before that agents aren't likely to take ethical matters seriously unless they see that it is a priority for their company, their trainers, and their managers. If they don't see their company providing training, or taking time to discuss professional ethics, they are going to infer that such matters are not important to the firm.

Certainly, one of the reasons that firms don't provide ethics training is that few within a brokerage may feel qualified to provide such training. This is not because they are unethical; rather it would be because they themselves have no background for putting on classes, setting a topic, guiding a discussion, etc. Nor should brokers and managers be expected to be so equipped. This is why the creation of the training modules is so important.

With this program, NAR will, in effect, be creating lesson plans for use by individual brokerages. It is providing real estate companies with a great opportunity to provide on-going ethics training to their agents. It is giving them the means whereby to demonstrate their professed commitments. It will be up to individual companies to take advantage of this opportunity.

Published: July 11, 2006

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

Bob Hunt is a former director of the National Association of Realtors and is author of the recently published book, "Real Estate the Ethical Way." A graduate of Princeton with a master's degree from UCLA in philosophy, Hunt has served as a U.S. Marine, Realtor association president in South Orange County, and director of the California Association of Realtors, and is an award-winning Realtor. Contact Bob at .