REALTOR

Definition

A REALTOR is a licensed real estate professional who is a member of the National Association of Realtors (NAR), the largest trade association in the United States. Being a REALTOR involves adhering to a strict code of ethics and standards of practice. Unlike common real estate agents, REALTORS pledge to uphold the NAR’s ethical guidelines and participate in ongoing educational opportunities.

Examples

Residential REALTOR: A licensed professional who assists clients in buying or selling residential properties such as houses or apartments.
Commercial REALTOR: A specialist in commercial properties including office spaces, retail buildings, or industrial facilities.
REALTOR Property Manager: A REALTOR who manages rental properties for landlords, dealing with tenant issues, maintenance, and rent collection.

Frequently Asked Questions

What distinguishes a REALTOR from a real estate agent?

A REALTOR is a member of the National Association of Realtors and subscribes to its ethical codes and standards. Not all real estate agents are REALTORS.

What is the National Association of Realtors (NAR)?

The NAR is a national organization that represents REALTORS and issues guidelines, ethics, and standards for its members.

What are the educational requirements to become a REALTOR?

While requirements vary by state, becoming a REALTOR generally involves obtaining a real estate license and completing additional coursework and training through the NAR.

What is the Code of Ethics for REALTORS?

The Code of Ethics ensures that REALTORS adhere to stringent ethical standards. It covers obligations to clients, the public, and fellow REALTORS.

Can REALTOR status expire?

Yes, REALTORS must maintain their membership with the NAR and comply with ongoing educational and ethical requirements to retain their status.

Real Estate Agent: A professional who has acquired the necessary real estate licensure to facilitate the buying and selling of properties.
Broker: A real estate professional who has completed additional education and licensing requirements, enabling them to manage a brokerage and oversee agents.
Listing Agreement: A contract between a seller and a real estate agent (or broker) authorizing the agent to represent the seller in selling their property.
Multiple Listing Service (MLS): A service used by a group of real estate brokers that allows each of them to see one another’s listings of properties for sale.

Online References to Online Resources

Suggested Books for Further Studies

“Your First Year in Real Estate: Making the Transition from Total Novice to Successful Professional” by Dirk Zeller
“Real Estate License Exam Prep All-in-One” by Stephen Mettling and David Cusic
“The Millionaire Real Estate Agent” by Gary Keller

Fundamentals of REALTOR: Real Estate Basics Quiz

### What key ethical body must a REALTOR adhere to? - [ ] OSHA - [ ] CFPB - [x] National Association of Realtors Code of Ethics - [ ] FHA > **Explanation:** REALTORS must adhere to the National Association of Realtors (NAR) Code of Ethics, ensuring they maintain high ethical standards in their professional conduct. ### Who is required to adhere to the NAR Code of Ethics? - [x] REALTORS - [ ] Financial Advisors - [ ] Land Surveyors - [ ] All real estate agents > **Explanation:** Only REALTORS, who are members of the National Association of Realtors, are required to adhere to the NAR Code of Ethics. ### What differentiates a REALTOR from an average real estate agent? - [x] Membership in the National Association of Realtors - [ ] A higher educational degree - [ ] More years of experience - [ ] Specializing in commercial properties only > **Explanation:** The key differentiating factor is the membership in the National Association of Realtors, which requires adherence to their code and continuous education. ### How often must REALTORS renew their commitment to the NAR Code of Ethics? - [ ] Every six months - [ ] Annually - [ ] Every three years - [x] Biannually > **Explanation:** REALTORS must renew their commitment to the NAR Code of Ethics biennially through ethics training. ### Are REALTORS subject to the same licensing requirements as real estate agents? - [x] Yes, plus additional education and ethical standards - [ ] No, they have entirely different licensing requirements - [ ] Not necessarily, only if they choose to be - [ ] Yes, but with fewer obligations > **Explanation:** Yes, REALTORS adhere to the same licensing requirements as real estate agents, with added commitments to ongoing education and ethics. ### What is the primary organization that certifies REALTORS? - [ ] Real Estate Board - [x] National Association of Realtors (NAR) - [ ] Federal Real Estate Authority (FREA) - [ ] Department of Housing and Urban Development (HUD) > **Explanation:** The National Association of Realtors (NAR) is the primary organization that certifies REALTORS and enforces their professional standards. ### What is a key responsibility of a REALTOR? - [ ] Conducting land surveys - [x] Representing clients in buying or selling properties - [ ] Issuing mortgages - [ ] Inspecting properties for faults > **Explanation:** A key responsibility of a REALTOR is to represent clients in the buying or selling of properties, ensuring a smooth and compliant process. ### In what manner must a REALTOR disclose information to clients? - [x] Truthfully and accurately - [ ] Based on potential profit - [ ] Minimally required details - [ ] Verbally only > **Explanation:** REALTORS are obligated to disclose information truthfully and accurately to uphold their duty to their clients and adhere to the NAR Code of Ethics. ### REALTOR status typically requires which of the following additional actions? - [x] Continuous professional education - [ ] Membership in finance organizations - [ ] Government allegiance - [ ] Community service only > **Explanation:** REALTORS must engage in continuous professional education and adhere to the NAR’s standards and codes, reinforcing their commitment to ethical practice. ### Why do clients often prefer hiring a REALTOR over a non-member agent? - [x] Due to their adherence to ethical standards and educational requirements - [ ] Because they charge lower fees - [ ] Their expert knowledge in all legal matters - [ ] Due to their government affiliations > **Explanation:** Clients often prefer hiring a REALTOR over a non-member agent due to their adherence to ethical standards and ongoing professional education requirements, ensuring higher levels of accountability and service quality.

Thank you for exploring the realm of REALTORS with our deep dive into their role, responsibilities, and ethical guidelines, and for engaging with our illuminating practice quiz questions. Keep aspiring towards real estate excellence!