The 2025 REALTOR® Code of Ethics: What You Should Know
The REALTOR® code of ethics is not just a rule book. It’s a guide that helps to ensure fairness, professionalism, and trust in every transaction. Knowing these guidelines is crucial for success, whether you’re a seasoned REALTOR® or just starting your real estate career. At Bob Brooks School, we’ve seen how understanding this code transforms careers and builds client trust. Let’s explore everything a real estate professional should know to stay ethical and excel in this competitive industry.
What Is the REALTOR® Code of Ethics & Standards of Practice?
The REALTOR® Code of Ethics & Standards of Practice from the National Association of REALTORS® (NAR) outlines the professional standards REALTORS® must follow. First adopted in 1913, it is a guide to ensure ethical interactions in real estate transactions. This code includes guidelines to protect clients, prevent conflicts of interest, and promote fairness in real estate practices.
Why Is This Important?
- It Fosters Trust: It ensures clients feel confident in their REALTORS® integrity.
- It Sets Industry Standards: The code establishes a consistent level of professionalism.
- It Protects Everyone Involved: It ensures the rights and interests of buyers, sellers, and any involved third parties are prioritized throughout the transaction process.
Duties to Clients and Customers
Articles 1-9 of the Code of Ethics cover a REALTORS® responsibility to clients and customers. When representing clients, REALTORS® pledge to prioritize their interests above all. The 2025 REALTOR® Code of Ethics & Standards of Practice lays a clear framework for realtor-client relationships. Here are some key points:
Key Responsibilities:
- Honesty and Integrity: Always provide truthful and accurate information.
- Confidentiality: This prohibits you from disclosing any information that may harm your client’s negotiating position.
- Full Disclosure: Disclose all offers and counteroffers unless instructed otherwise by the client.
REALTORS® should avoid misleading clients about property values or potential savings. Additionally, they are expected to manage client property responsibly, with due regard for safety and legal compliance. REALTORS® must also disclose dual agency arrangements to clients, ensuring they are aware of any potential conflicts of interest and providing complete transparency.
A Note on Dual Agency:
Dual agency permits REALTORS® to represent both buyers and sellers in the same transaction, but only with written consent from all parties involved. According to Standards of Practice 1-12 and 1-13, REALTORS® or listing brokers must disclose this information to their clients.
While dual agency is legal in Louisiana, this is not true for all states. Acting illegally as a dual REALTORS® or not disclosing this information to your client in a legal state is considered unethical behavior. This action can lead to legal action from clients, a loss of licensure, and even be considered a criminal offense.
Duties to the General Public
Articles 10 through 14 outline a REALTORS® obligations to the public. These principles help protect fairness, inclusion, and transparency in this competitive industry.
Key Highlights:
- No Discrimination: REALTORS® must provide services to everyone without bias. Discrimination based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, gender identity, or other protected statuses is strictly forbidden.
- Professional Honesty: Avoid misrepresentation in advertising or property details. Always present an accurate picture of available listings.
- Avoid Panic Selling: REALTORS® must refrain from activities that create fear or panic in neighborhoods — for example, promoting sales based on changes in community demographics.
These guidelines ensure trust and fairness while promoting a positive public image for the real estate profession.
Duties to Fellow REALTORS®
Articles 15-17 in the 2025 REALTOR® Code of Ethics & Standards of Practice emphasize collaboration and respect among REALTORS®. A cooperative industry benefits everyone, fostering positive relationships and smoother transactions.
Follow These Standards:
- Avoid Defamation: Refrain from making false or misleading statements about other professionals.
- Respect Exclusive Relationships: Do not solicit clients with agreements with other REALTORS®.
- Ethical Cooperation: Share information openly when cooperating with other brokers to close transactions.
Understanding these responsibilities minimizes conflicts and enables REALTORS® to work together toward successful outcomes.
Violations and Consequences
What happens if a REALTOR® violates the REALTOR® code of ethics? Any unethical behavior can lead to an ethics complaint filed with the local board of REALTORS®. Once a complaint is filed, the board follows an established process to investigate and resolve it. Penalties may include reprimands, mandatory education, or even loss of membership for extreme offenses. Depending on the severity, you may also be fined up to $15,000.
Ready to Become a REALTOR®? Bob Brooks School Has You Covered
Ethics training is an essential part of becoming a REALTOR®. At Bob Brooks School, we make mastering ethical practices simple and accessible.
Our convenient, LREC– and MREC-approved online pre-licensing courses cover everything you need to know to navigate real-world scenarios with integrity, ensuring you’re fully prepared to excel in your career. Learn anytime, anywhere, while gaining the skills to build trust and succeed in the competitive real estate market.
Call us now at 225-292-7277, or message us online for more information. Don’t wait — your path to a career in real estate starts here.
