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Code of Ethics Case Scenario: Absence of Name on Sign

August 9, 2018 in KCRAR

The National Association of REALTORS® provides case
scenarios of Code of Ethics cases as a resource to members to help further
their understanding of the Code of Ethics. This year is a Code of Ethics
education year, meaning REALTORS® have until Dec. 31 to complete a Code of Ethics training.

The following in a case scenario provided from NAR:

Case #12-1:
A​bsence of Name on Sign

(Reaffirmed Case
#19-3 May, 1988. Transferred to Article 12 November, 1994. Revised November,
2001 and
May, 2017.)

Prospect A
observed a sign on a vacant lot reading: “For Sale— Call 330-5215.” Thinking he
would be dealing
with a For Sale by Owner, he called the number on the
sign. He was surprised that the lot was exclusively listed by REALTOR® A, and
the telephone number on the sign was the home number of REALTOR® B in REALTOR® A’s office.

Prospect A filed a complaint against REALTOR® A and REALTOR®
B alleging a violation of Article 12 of the Code of Ethics.

At the hearing, REALTOR® A stated that he permitted REALTOR®
B to put up the sign. REALTOR® B’s defense was that the sign was not a “formal”
advertisement, such as an online advertisement, business card, or billboard, to which he understood
Article 12 to apply.

The Hearing Panel
determined that the sign was an advertisement within the meaning of Article 12;
that its use violated that
Article of the Code; and that both REALTOR® A
and REALTOR® B were in violation of
Article 12.

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