Bakersfield Association of REALTORS Citation Policy

As REALTORS®, in 2013 we had the privilege of celebrating the Centennial Celebration of the adoption of the NAR Code of Ethics. There has never been or may never be a greater opportunity to bring awareness and strive to improve the professionalism of our REALTORS® .

— Linda Jay, CEO

Code of Ethics Citation Policy Established January 1, 2014. When a Bakersfield Association REALTOR® is charged with violating certain articles of the Code of Ethics, he/she will have the option of accepting a citation rather than go through the traditional professional standards hearing process. Here are answers to some of the most common questions about the citation policy.

Why was the citation policy adopted? In April of 2013 the Association’s leadership team adopted a new Strategic Plan for 2013 – 2017 to guide our Association’s successive volunteer leaders, committees and professional staff. Key elements of the plan include a statement of purpose for the Association and a newly adopted vision statement establishing the long term outcome of how the Association should be perceived, which states: “Improving the real estate industry through professionalism and service.” Five goals were established as our core competencies. The first and most important of the five goals is to Educate our members with regard to professionalism and standards. In keeping with that goal and commitment, a combined leadership task force of the Association’s Professional Standards Committee, Grievance Committee, Ombudsman Joe Newton, then President David Knoeb, CEO Linda Jay and Professional Standards Administrators Claudia Bugarin and Karen Huffman, reviewed this model policy and recommended its adoption. This special task force identified several benefits: 1) Faster resolution for complaints of lesser severity that can be substantiated with documented evidence, completing a process that often takes six months in less than 30 days; 2) Savings of money, Association resources and volunteer time by Bakersfield REALTORS®; 3) Improved compliance with the Code of Ethics.

Are all ethics charges eligible for the citation program? No, only those charges relating to specific articles of the Code that can be substantiated with written or otherdocumented evidence, such as a print advertisement that violates Article 12 of the Code.

Which articles of the Code are covered by the citation policy? Articles 3, 4, 5, 6, 12, 14, and 16.

Can a Bakersfield REALTOR® fight a citation? The respondent has the option of accepting the citation or requesting the full due process

of a professional standards hearing.

What if a Bakersfield REALTOR® ignores a citation? If the respondent does not reply to the citation within 10 days, respondent will be sent a letter of warning that the matter will be forwarded for full Ethics hearing if no response is received within 10 more days. Failure to respond to citation within 20 days from date of citation automatically results in full ethics hearing , which opens up the possibility of any allowable sanction(s) determined by the hearing panel.

Who can file a complaint? Anyone. Anonymous complaints can be filed if the potential violation involves an article identified in the citation program.

Why are anonymous complaints allowed? A complaint must be substantiated with documentation; otherwise, it is not eligible for a citation. Anonymous complaints allow Bakersfield REALTORS® to file complaints that pertain to the citation policy without the fear of retribution by a competitor.

What happens to an anonymous complaint if the respondent does not accept the citation? The matter proceeds through the traditional professional standards process. If the grievance committee decides the complaint has merit, a grievance tribunal becomes the complainant. If there is no convincing evidence of a violation, the grievance committee will dismiss the complaint.

What happens if the respondent accepts the citation? A first offense carries a fine of $300. The respondent also must complete a live ethics training within 60 days. (optional: for first offence, fine may be refunded once ethics training has been completed.) The fine for a second offense is $600 and for a third offense is $900. After three citations within a 36-month period, all further complaints automatically go to a hearing.

What is the fine if multiple articles have been cited in the complaint? The fine is the same regardless of the number of articles cited in the complaint. For example, if it’s a first citation and it includes violations of two articles of the Code covered by the citation policy, the fine is still $300.

What if the complaint contains one charge related to an article covered by the citation policy and one charge that isn’t? To be eligible for a citation, all charges on a complaint must apply to the citation policy. If not, the complaint goes through the regular professional standards process.

Can a REALTOR® receive a Code of Ethics citation if he has received an MLS citation for the same event and conduct? No. It is the responsibility of the person receiving the Code of Ethics citation to demonstrate to the association that he has already paid a fine to the MLS for the same event and conduct.

WHAT PARTS OF THE CODE ARE ELIGIBLE FOR A CITATION? Article 3 Failure to disclose existence of dual or variable rate commission. Failure to disclose existence of accepted offers to cooperating brokers.

Article 4 Failure to disclose REALTOR® interest in property being bought or sold.

Article 5 Providing professional service without disclosing interest in property.

Article 6 Accepting any commission, rebate, or profit on expenditures without client’s knowledge or consent.

Article 12 Failure to present a true picture in real estate communications and advertising. Failure to disclose professional status in advertising and other representations. Failure to disclose compensation from a third party for services provided free to a client. Advertisement offering to sell/lease property without authority of owner or listing broker. Failure to disclose name of firm in advertisement for listed property. Failure to disclose status as both owner/landlord and REALTOR® or licensee when advertising property in which REALTOR® has ownership interest. Falsely claiming to have “sold” property. Registration or use of deceptive URL or domain name.

Article 14 Failure to cooperate in any professional standards proceeding or investigation.

Article 16 Use of terms of an offer to modify listing broker’s offer of compensation. Placement of for sale/lease sign on property without permission of seller/landlord