Code of Ethics Task Force

Protocols

Education Protocol
Communications Protocol
Compliance Protocol

THE EDUCATION PROTOCOL

Knowledge of the Code, its application and its rationale are essential for the membership to appreciate its function and role in organized real estate. We have defined a REALTOR® as a professional who must meet educational and ethical standards. Professionalism for a REALTOR® means service, ethics and competence. At present, there is no national requirement for initial or continuing education on the REALTOR® Code of Ethics. If we expect REALTORS ® to abide by the REALTOR® Code, we have an obligation to ensure they are educated on that Code.

This will be achieved by:

Training members on the REALTOR® Code of Ethics;
Training Professional Standards Committee members on investigation and hearing procedures;
Training the trainers who will facilitate classroom instruction on the REALTOR® Code of Ethics.

REQUIREMENTS FOR MEMBERS NOT SUBJECT TO A REGULATOR'S CODE

Every new member must take a course dealing with the REALTOR® Code of Ethics. The Boards/Associations have the option of offering these courses as part of their orientation or introductory courses, or online through REALTOR Link®. All new members must complete the REALTOR® Code of Ethics course within one year of joining the Board.
Every current member must take a course on the REALTOR® Code of Ethics every 4 years.
Efforts should be made to encourage provincial regulators to approve these courses for continuing education credits, where applicable.
By utilizing REALTOR Link®, CREA can assist Boards to monitor membership to ensure the courses are taken as required. Boards should amend bylaws/rules and policies as necessary to mandate the course requirement.

REQUIREMENTS FOR MEMBERS SUBJECT TO A REGULATOR'S CODE
In jurisdictions that have a regulator's code of ethics as part of their Curriculum, the Provincial/Territorial Associations will commit to communicate at least electronically with each member, at least every two years on those areas of the REALTOR® Code that are not covered by the regulator's mandatory course.

CREA's Role in Education
CREA will act as a resource in preparing and providing course materials and train the trainer programs at CREA's cost. Delivery will be at the Board or Provincial Association level, at the option of those bodies.

CREA will also develop and deliver a training module on REALTOR Link®. REALTORS® who wish to use this facility will be able to access the module and meet the education requirement online.

Education Protocol Costs
The goal is for education programs delivered by Boards and Associations to be self-funding.

THE COMMUNICATIONS PROTOCOL

An effective Code is one well known not only within the industry, but also with consumers. Two of the reasons for fortifying the Code are to enhance both the REALTOR® trademark and the public image of REALTORS®. Without an aggressive communications program targeting REALTORS®, the public, and Boards/Associations, those objects cannot be met. Code awareness has therefore been identified as a major challenge.

REQUIREMENTS FOR MEMBERS NOT SUBJECT TO A REGULATOR'S CODE
Communications initiatives to be developed for 3 target audiences - REALTORS®, Boards/Associations and the public as follows:

Communication initiatives directed to Boards/Associations - e.g. ethics awards, posting the Code on board websites, include Code in membership orientation and documentation etc.
Communication initiatives directed to REALTORS® - e.g. Ethics Awareness Week programs, promotional items such as frameable prints, bookmarks, pocket code of ethics etc.
Communication initiatives directed to the public: e.g.
I. Ethics Awareness Week advertising directed to public readership.
II. National Advertising Campaign - Upon the expiration of the current advertising campaign a new Advertising Campaign be launched to include ethics, REALTOR® image and the REALTOR® trademark. The focus of the National Advertising Campaign would not be on the REALTOR® Code specifically but rather the benefits to the public of REALTORS® adhering to a high standard of business practice and how the Code defines the standard of service established by the REALTOR® trademark. The message must be carefully presented to ensure a positive and powerful image of REALTORS®.

CREA's Role in Communications
CREA will develop content and coordinate initiatives directed to all 3 target audiences. Promotional pieces, dispatches, information items, articles, and print advertising copy will be distributed by CREA and will all be available to Boards/Associations, who will be encouraged to partner with CREA in local advertising.

Communication Protocol Costs
The costs of communications initiatives which fall under CREA's areas of responsibility will be subject to the usual budget approval process by the CREA Board of Directors.

As an ongoing strategy, Boards would be encouraged to partner with CREA in the promotion of ethics.

Communication initiatives directed to Boards/Associations - most are expected to be internally driven and cost-neutral - e.g. dispatches, posting on web sites etc. Some initiatives, such as Ethics Awards, are low cost items.
Communication initiatives directed to membership - sufficient allowance should be made to allow the creation of various ethics items for distribution at no cost to membership in first year of implementation of ethics model.
Communication initiatives directed to the public - Ethics Awareness Week might involve print or other advertising. Boards would be encouraged to advertise in their area at their expense.

REQUIREMENTS FOR MEMBERS SUBJECT TO A REGULATORS CODE
In jurisdictions that have a regulator's code of ethics, the Provincial/Territorial Associations will commit to communicate with members to enhance the industry trademarks and the public image of REALTORS® on those areas of the REALTOR® Code that are not covered by the regulator's mandatory code.

THE COMPLIANCE PROTOCOL

PREAMBLE
A Code of Ethics is meaningless without an ability to impose sanctions in the event of non-compliance. At the same time, boards must have the resources necessary to efficiently administer a Code.

The goal of this Compliance Protocol is to develop a seamless compliance program which recognizes the importance of effective enforcement of the REALTOR ® Code while at the same time respecting the differing ethics enforcement models in place in various jurisdictions across the country.

As part of the "Three Way Agreement", all Boards and provincial and territorial Associations and CREA have agreed to abide by the REALTOR® Code of Ethics and Standards of Business Practice. By virtue of the policy entitled "Minimum Standards to Establish and Maintain Membership of a Board in The Canadian Real Estate Association" all boards must adopt as a minimum standard, the REALTOR® Code and must either maintain a mechanism to effectively deal with and adjudicate complaints under the REALTOR® Code or appropriately delegate such enforcement to another Board or Provincial/Territorial Association.

THE ELEMENTS OF THE COMPLIANCE PROTOCOL

Bilateral Agreements
CREA shall enter into bilateral agreements with each Provincial Association which incorporate the following principles:

Responsibility for compliance and enforcement
Process for handling complaints
Equivalency and overlap of Provincial Regulatory Requirements and the REALTOR® Code
The creation of Tables of Concordance; and
CREA's role in compliance

A. Responsibility for Compliance and Enforcement
The compliance structure has various options. The Compliance Body may be constituted in any of the following ways unless prohibited by law:

The Board is responsible for compliance;
Alternatively, Boards and Provincial Associations may, by mutual agreement, put in place regional or provincial mechanisms to act as Compliance Bodies.

B. Process For Handling Complaints

Complaints must be in writing and cannot be filed anonymously;
Complaints can come from any source including the public and REALTORS® and can be initiated by the Compliance Body itself. No rule, bylaw or contractual commitment may prevent a Compliance Body from proceeding with a complaint simply because of its source;
Professional standard processes should include efficient methods of dealing with complaints that may not warrant a full hearing, such as a consent to discipline or Fast-Track process.

C. Equivalency and Overlap of Provincial Regulatory Requirements and the REALTOR® Code
For the purposes of this Protocol "Provincial Regulatory Requirements" means all regulatory bylaws, legislation, regulations, policies, and codes of ethics which are enforced by the real estate regulators in each province.

In processing a complaint, the Compliance Body will use the following criteria:

If the subject matter of the complaint falls under the REALTOR® Code and is not found in the Provincial Regulatory Requirements, then the Compliance Body shall process the complaint under the REALTOR® Code. This paragraph does not apply if compliance by the REALTOR® to the particular Article of the REALTOR® Code would put the REALTOR® in violation of provincial statute or regulation.
If the subject matter of the complaint falls under the Provincial Regulatory Requirements and is not found in the REALTOR® Code, then the complaint or complainant may be referred to the regulatory body responsible for enforcement of the Provincial Regulatory Requirements.
If the subject matter of the complaint falls under both the REALTOR® Code and the Provincial Regulatory Requirements, the matter will be dealt with in accordance with the tables of concordance and equivalencies attached to the Bilateral Agreement.
If one aspect of the complaint falls under the Provincial Regulatory Requirements and another aspect falls under the REALTOR® Code, the Compliance Body may refer the complaint or the complainant to the regulatory body responsible for enforcement of the Provincial Regulatory Requirements and shall deal with the other aspect of the complaint under the REALTOR® Code.
If the complaint has been sent to the Regulator, the Compliance Body is encouraged to consider the final decision of the Regulator and, if the offence is of a serious nature, the Compliance Body is encouraged to consider whether the complaint should be brought back before the Compliance Body.
Boards/Associations are encouraged to retain the discretion to either proceed or not proceed with any given complaint.

D. Creation of Tables of Concordance
The Tables of Concordance in the Bilateral Agreements shall be developed on the basis of the following principles:

Simplicity and clarity for ease of interpretation by members;
Equivalency of principles and values, not technical variations; and
Recognition of provincial/territorial differences.

E. CREA's Role in Compliance
CREA's role is to:

Negotiate the bilateral agreements, and maintain and monitor the Tables of Concordance;
Facilitate enhancement of the REALTOR® and MLS® trademarks by taking appropriate legal action to protect the marks when necessary; by assisting boards in trademark monitoring and by providing legal advice to boards on trademark infringements for discipline purposes;
Develop training courses for Professional Standards Committee (PSC) members for those jurisdictions requesting assistance; and
Provide legal advice on the REALTOR® Code.