The Washington times., 1929-12-14
Of ETHICS
FIRST USED
IN D. c.

At the closing session OF the
real estate forum at the Y. M.
c. A. this week John A. Petty,
executive secretary Of the Wash
ington Real Estate Board, and
chairman Of the forum, told the
members that the local realtors
organization was the first in the
country to adopt a specific code
Of ethics. prior to 1921" he
said, member boards Of the Ma
tior1al Association Of Real Estate
Boards, subscribed to a code Of
ethics which was an enunciation
Of general principles of practice
based on the Golden Rule"
At the time Of reorganization
Of the former Real Estate Brokers
Association Of Washington in
1921, there was adopted a so
called local code Of ethics. This
code set up a group Of rules to
cover actual and specific trans
actions in real estate practice and
1t has embraced real estate prac:
tice in such a comprehensive
manner that there have been no
amendments made to it since its
original adoption.
Big Board Adopts Code
about three years later the
national association revised its
code of ethics and adopted a ma
tional code for use of member
boards throughout the country
and this code follows very closely
the details Of the code drafted
and in use by the Washington
board"
Petty pointed out that the basis
Of ethics is honesty and courtesy.
People buy, sell and mortgage
homes, purchase mortgage notes,
lots and improved real estate for
much the same reasons. They
are actuated by the same motives.
This being true it was quite posi-
BILE to conceive a fundamental
manner in which specific trans
actions and activities of brokers
could be universally covered by
ethical standards.
While there is a difference In
real estate law in various States,
the method, conduct and ideals
of real estate men have been re-
duced to specific terms in man.
ner that can be used universally.
Basically the code Of ethics Of the
realtors is the application in
actual business transactions Of the
Golden Rule. The local code Of
ethics has the following pre-
amble:
I'm order to maintain the
dignity and professional character
of the real estate business, and
to promote fair and honorable
competition between brokers, the
washington Real Estate Board
has adopted this code Of ethics
as the basis of fair and ethical
practice"
Il embraces the obligations and
RESPONSIBILITIES Of a broker in his
contact with his client and the
public. Realizing the sacredneSs
of the relation Of principal and
agent the specific items Of the
code of ethics deal with character
of service, and the method it
should be rendered by q member
of the board.
Protection for Brokers
Some sections are set up to
clearly indicate the rights, obliga-
tions and responsibilities OF brok-
ers acting in relation to each
other. Listings of real estate,
standards Of commissions, meth
ods Of division Of commissions be
tween cooperating brokers and
the use Of real estate signs from
basis for mutual cooperation
between members.
Guided by the rules of ethics
of the board, realtors have a defi-
mite basis for use in their daily
transactions with each other and
with the public. Matters Of mis-
understandings that arise from
time to time are settled through
an arbitration committee Of the
board which committee has the
code Of ethics as q basis for its
decisions and its Interpretation OF
the code Of ethics applied in q
specific case is final as between
members of the board.
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