Realtor Code Of Ethics Template

In plain language: Sets out the philosophy and foundational values of the code — honesty, integrity, and professionalism — and explains that adherence is a condition of practice within the brokerage or association.

Common mistake: Treating the preamble as a marketing statement rather than a binding commitment. If the code does not explicitly state that violations carry consequences, agents may treat it as aspirational rather than enforceable.

In plain language: Defines the agent's obligations to clients they represent and customers they work with — including honesty, competence, and the duty to put client interests first.

Common mistake: Conflating client and customer duties. A client is owed fiduciary duties; a customer is owed only honesty. Treating both identically either under-serves clients or over-extends obligations to unrepresented parties.

In plain language: Enumerates the six core fiduciary duties owed to represented clients: loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.

Common mistake: Omitting the accounting duty. Agents who co-mingle client earnest money or referral fees with operating funds create serious liability and licensing violations, even when the omission was unintentional.

In plain language: Prohibits agents from steering, discriminating, or making representations based on protected characteristics, and requires affirmative compliance with federal, state, and local fair housing laws.

Common mistake: Listing only the seven federal Fair Housing Act protected classes and omitting state or local additions. Many jurisdictions add source of income, sexual orientation, and marital status — a code that lists only federal classes exposes the brokerage to state-level complaints.

In plain language: Requires agents to proactively disclose all known material facts affecting the property or transaction, including conflicts of interest, agency relationships, and personal financial interests.

Common mistake: Using a blanket 'as-is' framing to avoid disclosure. Known material defects must be disclosed even in as-is transactions in most jurisdictions; failing to do so exposes the agent and brokerage to rescission claims and license suspension.

In plain language: Sets requirements for truthful, accurate advertising — including online listings, social media, and signage — and prohibits misleading claims about price, availability, or property condition.

Common mistake: No specific rule on social media and online portals. Agents posting outdated listings, unverified square footage, or AI-generated property descriptions without review create misrepresentation liability the brokerage inherits.

In plain language: Restricts agents from disclosing client financial information, motivation, negotiating position, or personal data to unauthorized parties during or after the transaction.

Common mistake: Confidentiality clauses that expire at closing. A client's motivation, financial constraints, or health circumstances shared during the transaction remain confidential indefinitely — a time-limited clause invites post-closing disclosures.

In plain language: Governs how agents interact with other real estate professionals — including cooperation on listings, commission-sharing, and prohibitions on disparaging competitors.

Common mistake: Omitting procuring cause language. Disputes over who earned a commission when multiple agents worked with the same buyer are among the most common inter-agent conflicts — a clear procuring cause standard in the code prevents most of them.

In plain language: Establishes the process for filing a complaint, conducting an investigation, and imposing sanctions — including referral to a licensing board, fines, suspension, or termination of affiliation.

Common mistake: No defined timelines for the complaint process. An open-ended process exposes the brokerage to claims that complaints were buried or handled inconsistently, which compounds liability if a licensing board investigates.

In plain language: Confirms the agent has read and understood the code, agrees to be bound by its terms, and acknowledges that violations may result in the stated disciplinary actions.

Common mistake: Obtaining a signature on the initial hire date only and never re-obtaining consent when the code is materially updated. A signed acknowledgment of Version 1.0 does not bind the agent to amendments made in Version 2.0 unless they re-sign or the original agreement includes a provision for incorporated amendments.

A Realtor Code of Ethics is a binding professional conduct document that defines the ethical obligations real estate agents owe to their clients, the public, and fellow practitioners. It covers fiduciary duties, disclosure obligations, fair housing compliance, advertising standards, and dispute resolution. While the National Association of Realtors (NAR) publishes a model code that member agents must follow, brokerages typically supplement it with a firm-specific policy tailored to their state's licensing requirements.

NAR membership requires adherence to the NAR Code of Ethics, and most state licensing boards require agents to complete ethics training as a condition of license renewal. A brokerage's internal code of ethics is not universally mandated by statute, but it is generally considered essential risk management — it documents the conduct standard the brokerage enforces, which is the first line of defense in a licensing board complaint or civil lawsuit.

The NAR Code of Ethics is a national standard that applies to all NAR members and is enforced through the local association's professional standards process. A brokerage code of ethics is an internal document that may adopt, supplement, or exceed NAR standards and is enforced internally by the managing broker or an ethics committee. A brokerage code can be more specific — addressing social media, data privacy, and local fair housing additions — in ways the national code does not.

Yes — every licensed agent affiliated with the brokerage, including part-time agents, referral-only agents, and independent contractors operating under the brokerage license, should sign before their first active transaction. A code that is not universally signed creates an uneven enforcement standard, which is difficult to defend in a disciplinary proceeding or civil claim.

Depending on the severity, consequences range from a written reprimand and mandatory ethics training to fines, suspension, or termination of brokerage affiliation. Serious violations — fraud, misrepresentation, or discrimination — may also be referred to the state real estate licensing board, which can suspend or revoke the agent's license independently of any brokerage action. The code itself should specify each level of sanction to ensure consistent enforcement.

At minimum, review the code annually and update it whenever the NAR Code of Ethics is revised (typically every two years), when your state licensing board changes its rules, or when your jurisdiction adds new fair housing protected classes. Document each review in writing, assign a version number, and re-obtain agent signatures on any material update.

Yes — a brokerage may impose stricter conduct standards than NAR requires, provided those standards do not conflict with state employment law or licensing board rules. Common additions include tighter social media policies, broader confidentiality obligations, shorter listing removal timelines, and expanded protected class lists for fair housing. More restrictive standards are generally defensible; less restrictive standards that fall below NAR or state requirements are not.

Dual agency — representing both buyer and seller in the same transaction — creates inherent conflicts with fiduciary duties. Most states permit disclosed dual agency with written consent from both parties, but require the agent to transition from full advocacy to a neutral facilitation role. The code of ethics should specify when dual agency is permitted, what disclosures are required, and how agents should manage the conflict to avoid claims of misrepresentation or breach of fiduciary duty.

It can and typically should for brokerages that also operate property management divisions. Property managers handle client funds, maintenance decisions, and tenant relationships — all areas with significant ethical exposure. A code that is limited to sales agents leaves property managers operating without a documented conduct standard, which creates liability gaps in rent accounting, security deposit handling, and fair housing compliance.