What is a REALTOR®? Anyone licensed by the Texas Real Estate Commission can conduct real estate transactions in Texas. However, holding a real estate agent's or real estate broker's license does not make someone a REALTOR®. To earn that distinction, a professional must abide by the strict REALTOR® Code of Ethics.
Adopted in an era before widespread real estate licensing requirements, the REALTOR® Code of Ethics establishes a standard of ethics above and beyond legal requirements to ensure REALTORS® put the interests of clients first in every interaction. In addition, the vast majority of REALTORS® participate in a local or regional multiple listing service (MLS), which can give homebuyers a distinct advantage when buying or selling a home.
Only membership in the National Association of REALTORS® entitles real estate licensees to use the term REALTOR® on business cards and in marketing materials. Many consumers look for this designation as a signal they are working with someone committed to continuing education, professionalism and integrity.
Why do REALTORS® need a Code of Ethics? The REALTOR® Code of Ethics was first adopted in 1913, with the Golden Rule its theme, as a voluntary document outlining the professional duties of membership. The code became mandatory in 1924, four years after the Texas Association of Real Estate Boards, later renamed Texas Association of REALTORS®, was formed. This was an era before licensing was required in many states, and the REALTOR® code helped to establish professionalism and integrity for the real estate industry. Code of ethics training is now mandatory for all members.
