With Code of Ethics Article 1 being the most common Code of Ethics violated, this Article will explain how the panel renders a decision after the conclusion of a hearing.
During a Code of Ethics Disciplinary Hearing, the Hearing Panel will ask the Complainant why they are charging the Respondent with a violation of a particular article. The Respondent will then have an opportunity to respond as to why they feel they are not in violation of the Code of Ethics Article(s).
Article 1 States:
When representing a buyer, seller, landlord, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.
Summary of the Article
Article 1 requires REALTORS® to protect and promote their client’s interests, but to be honest with all parties in any transaction in which they are involved. The protection and promotion of the client interests imposes a due diligence standard measured against the reasonable conduct of other REALTORS® in the same circumstance. Failure to treat parties to a transaction honestly requires evidence of intent to deceive, in other words, willful conduct. REALTORS® remain obligated to the Code of Ethics even when acting as a principal in a transaction.
Once the Complainant and Respondent present their respective cases and the Hearing has concluded, the Hearing Panel will deliberate and ask themselves the following questions to determine guilt or innocence.
Was the conduct complained of directed at a client or another party to a transaction with the client or REALTOR®?
If the conduct was directed at someone other than a client, the panel will determine:
- What was the nature of the transaction during which the conduct occurred?
- What conduct during the transaction was fraudulent or deceptive?
- What evidence is there that the conduct was intentional?
If the conduct was directed to a client, the Hearing Panel will ask themselves the following questions:
- What is the interest claimed not to be protected or promoted?
- In what way was the claimed interest important and in need of protection or promotion?
- How did the respondent fail to protect or promote the interest?
- Would the average REALTOR® in the same circumstances have protected or promoted the client’s interest?
The Hearing Panel then deliberates the questions above. If they determine the Respondent was in violation of Article 1, the Hearing Panel will ask staff if there are any other outstanding violations in the members file before imposing the appropriate disciplinary action against the Respondent. Disciplinary action can range from
- A Letter of Warning in the member’s file for 3 Years
- A Letter of Reprimand in the member’s file for 3 Years
- Fine of up to $15,000
- Administration Fee of $500
- Suspension of REALTOR® Membership/MLS Services
- Expulsion of REALTOR® Membership/MLS Services
- Required Education
- Cease and Desist Letter
- Refer the matter to the California Department of Real Estate or other government agency.
Please contact the PWR Professional Standards Department if you have any questions about when and how to file a Disciplinary Complaint.
