Code of Ethics Changes Now in Effect

ORLANDO, Fla. — Dear Shannon: I heard there were COE changes made at NAR’s Realtor® Legislative Meetings (RLM) in Washington, D.C. that took effect as of June 5, 2025. Can you tell me more? – What’s New?

Dear What’s New: The Code of Ethics is a living document that evolves with the real estate industry, and changes to the Code of Ethics and Arbitration Manual (Manual) generally go into effect on Jan. 1st of each year. The changes that took effect January 1, 2025, were highlighted in a December 2024 Dear Shannon Article called: Code of Ethics and Arbitration 2025 Changes. Yes, during NAR’s RLM in June, additional changes became effective June 5, 2025, including eleven Standards of Practice (SOP) changes, a major Policy Statement change and administrative changes.  This article focuses on the eleven SOPs that were revised and are effective June 5, 2025.

1. Standard of Practice 1-12, (underscoring indicates additions, strikeouts indicate deletions):

When entering into listing contracts, REALTORS® must advise sellers/landlords of:

1. the REALTOR®’S company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;
2. the fact that broker compensation is not set by law and is fully negotiable;
3. The options and amounts of compensation, if any, that may be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities.
4. the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
5. any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)

2. Standard of Practice 1-13, (underscoring indicates additions, strikeouts indicate deletions):

           When entering into buyer/tenant agreements, Realtors® must advise potential clients of:

1. the REALTOR® ’S company policies regarding cooperation;
2. the fact that broker compensation is not set by law and is fully negotiable;
3. the amount of compensation to be paid by the client, if any;
4. the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
5. any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, subagent, landlord’s agent, etc.; and
6. the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties. (Adopted 1/93, Renumbered 1/98, Amended 1/06)

3. Standard of Practice 1-16, (underscoring indicates additions, strikeouts indicate deletions):

When acting as a listing broker or property manager, REALTORS® shall not access or use, or permit or enable others to access or use, listed or managed property on terms or conditions other than those authorizedestablished by the owner or seller.

4. Standard of Practice 3-1, (underscoring indicates additions, strikeouts indicate deletions):

REALTORS®, When acting as exclusive agents or brokers of sellers/ landlords, REALTORS® will work with sellers/landlords to establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation. (Amended 1/99)

5. Standard of Practice 3-2, (underscoring indicates additions, strikeouts indicate deletions):

If compensation is offered or advertised by the listing broker, any change in offered compensation offered for cooperative services must be communicated prior to the time that REALTOR® submits an offer to purchase/lease the property as soon as practical. After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction.

REALTORS® are prohibited from delaying or withholding delivery of a buyer’s/tenant’s offer while attempting to negotiate compensation. These ethical obligations in no way restrict the REALTORS®' or clients' ability to negotiate compensation in the clients' best interest, including in offers to purchase or lease.

6. Standard of Practice 3-9, (underscoring indicates additions, strikeouts indicate deletions):

When acting as a cooperating broker, or in a capacity other than as a listing broker or property manager,REALTORS® shall not provide access to listed access or use, or permit or enable others to access or use, property on terms or conditions other than those established by the owner or the seller.

7. Standard of Practice 9-2, (underscoring indicates additions, strikeouts indicate deletions):

When assisting or enabling a client or customer in establishing a contractual relationship (e.g., listing and representation agreements, purchase agreements, leases, etc.) in person, electronically or through any other means, REALTORS® shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party.

8. Standard of Practice 10-1, (underlining indicates additions, strikeouts indicate deletions):

When involved in the sale or lease of a residence, REALTORS® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood, however, REALTORS® may provide other demographic information. nor REALTORS® shall they not engage in any activity which may result in panic selling or steering, however, REALTORS® may provide other demographic information.

9. Standard of Practice 10-5, (underscoring indicates additions, strikeouts indicate deletions):

REALTORS®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities, must shall not use harassing speech, hate speech, epithets, or slurs harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

As used in this Code of Ethics, harassment is unwelcome behavior directed at an individual or group based on one or more of the above protected characteristics where the purpose or effect of the behavior is to create a hostile, abusive, or intimidating environment which adversely affects their ability to access equal professional services or employment opportunity.

10. Standard of Practice 16-11, (underscoring indicates additions, strikeouts indicate deletions):

On unlisted property, Realtors® acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement. (Amended 1/04)

Realtors® shall make any request for anticipated compensation from the seller/landlord at first contact. (Amended 1/98)

This ethical obligation in no way impacts REALTORS® or consumers’ ability to negotiate compensation.

11. Delete Standard of Practice 16-16

Realtors®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)

Do not expect NAR to print updated hard copies of the Manual mid-year. Please frequently visit NAR’s 2025 Code of Ethics & Standards of Practice page for ongoing updates.

Shannon Allen is an attorney and Florida Realtors Director of Local Association Services

Note: Advice deemed accurate on date of publication

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