Definition of "Code"

Linda L.  Ledoux, LLC real estate agent

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Linda L. Ledoux, LLCelite badge icon

RE/MAX Marketing Specialists

Codes are all around us, determining the logical flow of various events and processes. In the cycle of actions and consequences, codes are used as guidelines. The most commonly known codes in real-life are ZIP codes and QR codes.

Zoning and building codes in land development

By definition, a code means an organized set of rules or regulations on a specific subject. Often codes are an accumulation of laws for one particular area of interest. You can define codes as a convention, custom, discipline, or system. For example, think of zoning laws or building codes

A zoning code defines a piece of land’s use and building layout for the land’s future development. More precisely, it determines what sort of buildings (for instance, commercial or residential) are permitted to be built. Secondly, building codes regulate the concrete structural aspects of commercial buildings and residential properties. Thus, they determine the characteristics of ventilation, natural gas, plumbing, air-conditioning, and heating systems. 

Computer codes follow a standard set by a programmer.

A code can imply a secret language system in its purest and most flawlessly functioning form. In computer terminology, writing a code means inventing a set of instructions that the personal computer or an electronic device, such as a smart home gadget, can interpret or understand. Therefore, they can follow its protocol at any given moment. Whatever happens, it works because a human programmer wrote it. 

What are the various real estate codes?

Here, at @realestateagent, our primary concern is real estate codes. However, the term can describe several different concepts. Let’s reveal some insider secrets of codes!

Real estate code of ethics

Professional local real estate agents had to develop a unified realtors’ code of ethics to address the industry’s most common issues. Thus, they formed the National Association of Realtors and created the ethics regulation. Obviously, every board of realtors can outline a separate handout containing the various ethical standards their agents must respect. Still, which are the most recurrent code principles?


  1. You must not bad-mouth or tarnish other agents; or brokers’ reputations, especially in front of clients. 


  1. Agents want new listings and practical marketing tools to get new business. Their offline approach is contacting property sellers by phone or sending them postcards. However, what happens when the homeowner is already listed with another brokerage or agent? In that case, the realtors’ code of ethics determines that agents should not go after clients represented by another broker. 


  1. When advertising a property online for sale, the code of ethics determines that listing agents are not to promote or display other agents’ listings without their written content. Suppose a particular agent has the exclusive right to sell real estate. In that case, it’s unethical for another agent to represent the same sale online. 


This scenario applies primarily to new agents who are zealous to break into the market. As a result, rookies are willing to go to extreme and dishonest lengths. The solution is to advertise listings within your own real estate company or brokerage. In addition, your broker gave their consent to promote those listings. Or, you can obtain the written permission of all other agents representing the said client.

What do real estate ‘codes’ in MLS descriptions genuinely mean?

Did you know that a “hidden gem” can define an unattractive property in a less-developed neighborhood? The Multiple Listing Service (MLS) property descriptions often conceal hidden meanings. Thus, the “hidden gem” owner tries to showcase values their home doesn’t actually display.

Experienced realtors will know that a cozy house equals a tiny residence and, perhaps, an overpriced one too. Similarly, “stunning” disguises an entirely normal real estate. The original meaning of “good bones” is to underline a home’s solid foundation. However, it might only mean that the property won’t fall to pieces under your feet in reality.

Have you ever heard of a “motivated seller?” In free translation, the listing agent listed the asset at too high a price. And now they are under constraints to sell it before the listing agreement expires. Besides, a motivated seller can also imply a desperate one ready to settle with a lower price. 

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