Real Estate Code of Ethics: Driving Social & Community Impact

If you’re a REALTOR^®, you’ve probably heard about the real estate Code of Ethics more times than you can count. But beyond the classroom, what does it actually look like in your day-to-day? 

Here’s a breakdown of what the code of ethics covers, why it matters, and how to make it work in real life.

The REALTOR^® Code of Ethics at a glance

First adopted in 1913 and refreshed regularly, most recently effective June 5, 2025, the REALTOR^® Code of Ethics is the rulebook every member of the National Association of REALTORS® (NAR) agrees to play by. Its purpose hasn’t changed: to set a higher standard for professionalism in real estate.

Who must follow the Code? Every REALTOR^® — that’s anyone who joins NAR, including REALTOR‑ASSOCIATE^®s, plus any licensees who want to market themselves with the REALTOR^® “R.”

What’s actually in the Code? The Code has 17 articles, grouped into three main categories:

• Duties to Clients & Customers (Articles 1-9)
• Duties to the Public (Articles 10-14)
• Duties to REALTORS^® (Articles 15-17)

Together, they cover just about everything: honesty in listings, cooperation with other agents, fairness in advertising, respecting exclusive agreements, and staying far, far away from discrimination or shady commission deals.

The Code is often stricter than local or federal law. So even if something isn’t technically illegal, it could still be unethical under the Code. If that sounds intense, it’s because it is! And that’s a good thing.

The 3 core sections of the code

The REALTOR^® Code of Ethics has 17 articles, but it’s not as overwhelming as it sounds. Everything is grouped into three buckets, which makes it easier to understand how it all fits together.

Duties to Clients & Customers

This section (Articles 1-9) is about taking care of the people you work with directly: buyers, sellers, landlords, and tenants. It covers things like putting your clients’ interests first, disclosing what you know, handling offers promptly, and being upfront about how you get paid. 

Put simply, don’t cut corners, and don’t ghost anyone.

Duties to the Public

Articles 10-14 are about protecting the public at large. That means no discrimination (ever!), always staying truthful when advertising (no puffed-up stats or doctored photos), and cooperating with investigations or professional standards hearings when needed.

Duties to REALTORS^®

Articles 15-17 govern how agents treat each other. No trashing competitors, respect exclusive relationships, and arbitrate commission disputes instead of dragging everyone to court. Basically, compete hard, but stay professional.

Why ethics matter in real estate

Here’s the truth: real estate doesn’t work without trust. Clients might not know every article in the real estate code of ethics, but they can tell when they’re working with someone who walks the walk.

Agents are invited into people’s lives at some of their most stressful (and expensive!) moments. If clients don’t believe that agents are acting in their best interest, everything falls apart fast. And that’s why ethics are the guardrails that keep you (and your deals) out of the ditch. They:

• Build credibility: Referrals and repeat business only happen when people feel safe with you.
• Reduce risk: Clear disclosures and honest marketing mean fewer complaints, fines, and lawsuits.
• Keep deals moving: When everyone plays fair, cooperation is easier and closings are smoother.
• Protect communities: Fair housing isn’t just a checkbox — it’s how we make sure opportunity isn’t gated by bias.
• Elevate your business: Plenty of agents have a license, but not everyone operates at a higher standard.

Real-world scenarios: Ethical vs unethical

Ethical issues in real estate aren’t always obvious. Sometimes, they happen in everyday decisions: how you market a property, how you handle offers, or what you say when a client asks something tricky. Here’s how some real-world situations can go the right or wrong way:

Scenario 1: You’re juggling multiple offers on a hot listing.

• Ethical: You present all offers quickly, exactly as they came in, without trying to manipulate the outcome. No holding anything back, so your buyer client can sneak in.

• Unethical: You sit on an offer so you can try to double-end the deal or pressure a buyer to use your preferred lender.

Scenario 2: You’re using AI to enhance property listing photos.

• Ethical: You label virtual staging/edits clearly in the caption and marketing remarks.

• Unethical: You swap out a power line or cracks in the driveway with AI and never bother mentioning it in the listing description.

Scenario 3: You’re trying to explain your commission setup to a buyer.

• Ethical: You disclose who’s paying which fee before anyone signs. You put it in writing.

• Unethical: You bury compensation details in the fine print or spring them on a buyer at the closing table.

Scenario 4: A buyer asks about “good neighborhoods.”

• Ethical: You share objective data, like crime stats and school ratings, and direct buyers to reliable sources.

• Unethical: You steer clients away from an area with coded language like “That neighborhood isn’t really your vibe” or “Families don’t usually buy here.”

Scenario 5: Your client closed three months ago, and you’re chatting with a fellow agent.

• Ethical: You keep the conversation light and professional — no mention of the client’s finances, relationship status, or anything else personal.

• Unethical: You casually mention a past client’s divorce or debt situation at a networking event.

Staying compliant & continuously educated

Real estate agent code of ethics training is an ongoing part of staying sharp, informed, and compliant in your career. Whether you’re a new agent or you’ve been doing this for years, keeping up with the REALTOR^® requirements helps you protect your business. 

Here’s how to stay on top of it:

• Mark your calendar now: NAR requires Code of Ethics training every three years, but that deadline can sneak up fast, especially if your state has its own timeline. Set a recurring reminder and knock it out early, not during renewal crunch time.
• Check your business materials regularly: Set aside time each quarter to review your listing descriptions, marketing messages, disclosures, and client materials. Look for unclear claims or anything that might raise red flags under the Code.
• Document everything: Maintain simple logs or folders that track when offers were presented and client funds were handled. Having a paper trail always protects everyone involved.
• Stay in the loop and talk about it: Ethics standards evolve. Keep an eye on updates from NAR or your local real estate board, specifically around compensation, fair housing, and marketing practices. When something changes, talk about it with your team so everyone’s on the same page.