What distinguishes the Standards of Business Practice from the REALTOR Code of Ethics?

The distinction between the Standards of Business Practice and the REALTOR Code of Ethics lies in their nature and application within real estate practice. The REALTOR Code of Ethics is a mandated set of principles that members of the National Association of Realtors (NAR) must adhere to, encompassing obligations to clients, the public, and fellow REALTORS. Compliance with the Code is not optional; it is a condition of membership.

On the other hand, the Standards of Business Practice are guidelines that real estate practitioners can follow; while they promote ethical conduct and professionalism, adherence to these standards is not a requirement for all real estate professionals. This voluntary aspect of the Standards allows for a degree of flexibility in practice compared to the strict rules outlined in the Code of Ethics.

This clarification helps to underscore the hierarchical relationship between the two: the REALTOR Code of Ethics is a foundational requirement, establishing the ethical framework that members must abide by, while the Standards of Business Practice serve as additional guidance that can enhance a REALTOR's business conduct.