Real Estate Ethics

What We'll Cover

• Source of ethics
• Your ethical obligation
• Real-life scenarios
• Legal Cases
• Fair Housing & Discrimination

What are "Ethics"?

Source of Ethics

• Values
• Oregon law
• Habits
• Realtor Code of Ethics
• Industry practices

Statutory Duties

• Deal honestly & with good faith
• Present all offers
• Disclose material facts
• Loyalty
• Maintain confidential information
• Handle client money properly

Meaning of Fiduciary

Duties to Clients

Misleading Statements

• Market Value
• Benefits & Savings realized through use of services

Dual Representation

• Full Disclosure
• In Writing
• Informed Consent

Offers and Counter-Offers

• Timely
• Objectively
• ALWAYS Convey

Once Offer is Accepted?

Confidential Information

• Price
• Terms
• Motivation to Sell
• ORS 696.800

Confidential Information

• May not reveal
• May not use to the disadvantage of client
• May not use to your advantage
• [Client may consent to use]

Consistent Terms and Conditions

Listing Contracts

• Cooperation Policies
• Dual Agency
• Must be in Writing

Appraisals and Valuations

Use of Listed Properties

Exaggeration

Your Duty to Disclose

• Reasonably apparent adverse factors
• No duty to discover latent defects

Cooperation

Exceptions to Cooperation

• When not in client's best interest
• If it would reveal confidential information
• Cooperation does not include fees and commissions

Acquiring Real Estate

• For yourself
• For your immediate family
• For an entity which you are part of

Accepting Gifts

Referrals and Recommendations

Trust Accounts

Statute of Frauds

Advertising and Marketing

Disclosure of Firm Name

Use of "Sold" Signs

Maintaining Current and Accurate Information

Internet Marketing

• Misuse of Information
• Deceptive Metadata
• Use of Other's Content Without Recognition
• Use of Customer Information

Duty to Other Agents

• May not knowingly or falsely make misleading statements
• May not interfere with other agent's clients
• May not steal clients from previous firm

Preparing Valuations and Opinions

• Identify property
• Include any conditions
• Cite to data or authority
• State any conflicts of interest

Duty to Public

Providing Demographic Information

• Deemed necessary
• Information is from reliable, independent source

Protected Classes

• Race
• National Origin
• Family Status
• Gender
• Sexual Orientation
• Handicap

Fair Housing Act

Unauthorized Practice of Law

Violation of Ethics Rules

• Duty to Cooperate
• No Unauthorized Disclosure of Proceedings

Arbitration