10.42 Explaining Agreements Generated by Electronic Transmission

Today, many contractual agreements are created through the use of electronic transmissions (email, Internet, fax, etc.). These agreements include listing agreements, purchase and sale agreements, leases, buyer representation agreements, and other contracts. Due to the fact that in most electronic contractual situations personal contact between the parties is limited, the terms of the contracts are often not explained in the same way as they would be in a face-to-face situation. The point of this policy is simple:

A licensee has an obligation to explain and disclose the specific terms of the contract generated by electronic transmission prior to its execution just as would be done in a face-to-face situation.

REALTOR®Code of Ethics: Standard of Practice 9-2 also covers this in detail.