What the Code of Ethics says about contacting other REALTORS®’ clients

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03/17/2015 | Author: Editorial Staff

I’m the property manager for a home in an up-and-coming neighborhood. The property owner said a REALTOR® in his neighborhood convinced him it’s a good time to put the house on the market, with her as the listing agent, after our property-management agreement ends in April. I also list homes, and I have an existing relationship with the homeowner. Is the other REALTOR® violating the Code of Ethics by contacting my client? 

No. Although Article 16 of the NAR Code of Ethics prohibits REALTORS® from engaging in any practice or taking any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that REALTORS® have with clients, Standard of Practice 16-3 allows REALTORS® to contact the client of another broker to provide a service different than what is currently being provided, or to offer the same type of service for property not subject to a broker’s current exclusive agreements. If you are offering property-management services, another broker can provide brokerage services to sell the same property without risking violating Article 16. And if your owner had two properties and you only managed one, another broker could provide property-management services for the home you don’t have an exclusive agreement for.

However, information received through an MLS or any other offer of cooperation may not be used to target clients of other REALTORS®. In your situation, the other REALTOR® did not use these methods, and is therefore not in violation of the Code.

Find more legal FAQs on texasrealestate.com.

Categories: Legal
Tags: legal faq, code of ethics, property management


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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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