Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-19
ETHICS IN REAL ESTATE FIELD
OUTLINED TO SCHOOL CLASS
John A. Petty Tells How to Inspire Public
Confidence and to Insure Integrity
Among Realty Dealers.

The ethics of the real estate pro
| fession necessary to bring about con
| fidence on the part of the public and
unquestionable integrity on the part
OF realtor were outlined to the stu
dents Of real estate at the regular
| weekly lecture before the Y. NJ c. A.
School by John A. Petty, vice presi-
dent Of Shannon & Luchs. Inc, Mon
| day night
| Mr.. Petty said that the National
| Association of Real Estate Boards
was one of the first business groups
| in the country to take definite action
| to improve business practices, and
that before it's formation little or moth
| ing of this character had ever been
| undertaken in general business lines
| About 20 years ago. when small
group of realty leaders from various
cities met and organized a national
| association. he said, they laid the
| groundwork for one of the most pro
eressive movements in the CONNER
cial life Of the country.
| Aim Of Organization.
THE primary and ultimate purpose
Of the organization. Mr.. Petty as
serted was to raise the real estate
| business to the professional place
which it's Importance merits. One of
the first steps taken was the adoption
Of a code of ethics to be adhered to
| by it's members. This code has been a
great moral force In the real estate
| business. and its development through
out the country has been tremendous
factor in improving the practice in the
realty market. More than % 900 real
tors and many times that number of
associates are affiliated with the 500.
of n,-f1Cs h.
national association, and each and
every one is bound by the rules CON
| tanned in the national code Of ethics
Each board is compelled to adopt this
code as part of its bylaws and every
| individual member must subscribe to
| it, Originally the code was drafted
along rather general lines. with the
, golden rule as the basis of it's con
tent. In 1923. however. the national
| association at its convention in Wash.
| ington adopted a revised code that
more clearly and specifically defines
| the standards of practice that mem.
Ders must live up to.
Ethics is merely the practice of
basic principles of honesty and cour.
tesy. 1t is the application in daily
work of the golden rule of honesty
and fair dealing. Therefore a code OF
| ethics serves to clearly distinguish the
right from the wrong in fundamentals
that underlie actions in given trans
actions.
| THE very nature of real estate
practice makes 1t almost impossible tC
avoid occasional MISUNDERSTANDING
Competition between brokers in the
! legitimate pursuit of their business
sometimes results in situations that
are almost unavoidable, and in such
| instances a standard guide is found in
the code of ethics to properly direct
competitors in conducting their bust
ness SO as to avoid friction and dis
agreements Many persons who enter
into realty transactions either as pur
chasers or sellers are unfamiliar with
the ordinary customs and procedure OF
real estate dealings and have little oil
no knowledge of their rights or re
sponsibilties. and the definite rules OF
practice adopted by the realtors are a