DBrief Episode 04: Navigating Risk Reducation with the Code of Ethics
Welcome to the latest episode of Debrief, a video series aimed at designated brokers, managing brokers, and broker owners. In this episode, we delve into the topic of risk reduction in the real estate industry, featuring two distinguished guests, Bobby Petrone Chipman, Principle Managing Broker with John L. Scott and certified Code of Ethics Instructor and Michael Orbino, a Managing Broker at Compass and the Chair of NAR’s Professional Standards Forum. They discuss the importance of the Code of Ethics in mitigating risks, share insights into current market trends, and explore ethical challenges posed by emerging technologies.
The Founding Document: The Code of Ethics
The discussion begins with Michael Orbino providing a brief history of the Code of Ethics, highlighting its significance as the founding document of the National Association of REALTORS. Codified in 1913, the Code has evolved over time, serving as a guiding framework for real estate professionals. It emphasizes principles rather than strict rules, offering a manual for ethical conduct.
Using the Code of Ethics to mitigate risk, Bobby Petro Chipman underscores the importance of creating awareness and understanding of the Code of Ethics among real estate professionals. By regularly teaching and discussing the Code, brokers can help their teams make informed decisions and reduce the risk of ethical violations. Michael adds that the Code is not just a legal document but a valuable tool for ethical behavior.
Trends in Risk and Ethical Challenges
The conversation shifts to current market trends and the ethical challenges they present. Michael notes that economic shifts and changes in market conditions can increase the potential for conflicts and ethical dilemmas. In particular, the competitive nature of the real estate market can lead to misunderstandings and disputes among professionals. They discuss the growing concern of honesty in advertising and the impact of artificial intelligence (AI) in the real estate industry. As AI becomes more prevalent, questions arise about the ethics of using AI-generated content in listings and advertisements. They acknowledge that professional standards need to adapt to address these emerging challenges.
The Code of Ethics as a Living Document
The conversation concludes by emphasizing the nature of the Code of Ethics. It serves as a living document that evolves to address the ever-changing landscape of the real estate industry. Both guests stress the importance of understanding and applying the Code to maintain ethical standards and reputation in the profession.
Final Thoughts: The Code of Ethics is not merely a set of rules but a fundamental guide for ethical behavior in the real estate industry. It plays a crucial role in mitigating risks, resolving conflicts, and maintaining the integrity of the profession. Real estate professionals are encouraged to familiarize themselves with the Code and embrace it as a valuable resource in their daily practice.