The successful agent in 2026 won’t be the one who closes the most deals, writes coach Darryl Davis. They will be the ones to shut down without legal exposure.
Most real estate agents don’t think about legal exposure until it’s too late. They’re busy showing homes, negotiating deals, and chasing deals, but somewhere in the blur of ongoing activity, a compliance gap emerges.
Maybe it’s an outdated buyer agent agreement. Perhaps it was a verbal agreement that was not documented. Maybe it’s a misunderstood rule about compensation disclosure that another agent swore was correct.
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Then the phone rings. That’s a complaint. Worse, it’s a lawsuit.
Here’s the uncomfortable truth. Real estate rules are changing faster than most agents can keep up. The ripple effects of large litigation settlements, evolving state laws, and changes in MLS policies can mean that what was perfectly fine last year could put your license at risk today.
Think of compliance like a pilot would think of a pre-flight checklist. Checklists are not optional, and skipping even one item can lead to disaster.
This is not a story of paranoia. It’s about being professional. Below is a practical and important checklist that every working agent should review on a regular basis. It should be reviewed as part of your ongoing business, not once a year during continuing education.
audit the contract
Review all active listing agreements and buyer agency agreements for compliance with current laws, board and MLS rules. Start here, as most violations are located here. The rules regarding buyer agency agreements have changed dramatically in many markets. If you’re still using forms from 18 months ago, you may be out of compliance without realizing it. Obtain all valid contracts and check them against the latest requirements from MLS and state licensing authorities. Read again your state and county laws regarding buyer compensation and fee disclosures. Don’t assume you know what the law says just because you attended a class once or someone “told you” that it was the rule. Laws change. Interpretation changes. What applies in one county may not apply in the next county. Make it a habit to go directly to the source at least once a quarter.
document everything with the intention of going to court
Always expect to be sued. It sounds dramatic, but that mindset will protect you. After every important call, meeting, or negotiation, send the other party a summary email confirming what was discussed and agreed upon. This creates a paper trail that could potentially save your career. If it’s not in writing, it’s not happening. Over-communicate with everyone: clients, cooperating agents, and brokers. Silence is not golden in real estate. Agents who get into trouble are often the ones who assume everyone is on the same page. Please spell it out. please confirm. Follow up. every time.
Stay informed — ignorance is not a defense
Subscribe to real estate news sources like Inman News. The industry is rapidly evolving. If you’re not reading industry news regularly, you’re flying blind. Significant legal decisions, policy changes, and regulatory changes are reported in these outlets long before they make it to local association meetings. Hold a weekly 10-minute compliance meeting with your team or broker. This doesn’t have to be a formal meeting. A quick weekly check-in to discuss new rules, upcoming changes, and recent issues keeps everyone on the same page. Cheapest insurance ever. Stay up to date with your continuing education. Don’t wait until the last moment. Cramming CE time at the end of a refresh cycle is a recipe for surface-level understanding. Please spread it out. Take courses that actually address current legal issues, not just the courses that are easiest to complete.
Find out where you can get real answers
Please note that MLS and association rules are not the same as licensing laws. This is one of the areas where confusion can occur the most. MLSs may require certain disclosures, but these are membership rules and failure to do so may result in fines from the Board of Directors. Licensing laws are a completely different beast, and violating them can result in your ability to practice being impaired. Please know the difference. Always follow your broker’s guidance and company policies. Brokers are the first line of defense. If you have any questions about how to handle the situation, please go to your broker before going elsewhere. And when another agent tries to tell you what the law is, remember to respond, “Show me the law.” Do not accept legal advice from unqualified persons. Do not use the association for legal advice, instead contact your broker or state licensing hotline. Local associations can be a great source of information about many things, but legal advice is not one of them. Keep the Licensing Department’s hotline number handy and use it whenever you need reliable answers.
Protect yourself in every transaction
Don’t call the listing agent and ask if the seller pays a buying agent fee. This still confuses agents. Your fee is your fee and it is a settlement violation to call the listing agent to inquire, or worse, to say you won’t show them the property if they don’t have an offer. Know your value, communicate your value, and negotiate your commission into the terms of the buyer’s offer. Please know that we can draft listing agreements, buyer representation agreements, and other documents, but not real estate contracts. Understanding what you can and cannot draft is fundamental. And remember, rules vary by state. For example, dual agency laws vary widely from country to country. What may be legal in your state may be prohibited in the next state. “Buyer beware” does not apply to licensed real estate professionals. This is important. You can be held liable for misrepresentations, even if they are accidental or unintentional. Always double-check facts and listing data. If you present information to your client and it turns out to be incorrect, “I didn’t know” is not a defense.
Take advantage of the latest tools
Invest in AI tools like Claude, Gemini, and ChatGPT for quick research and brainstorming. For about $20 a month, you can hire an assistant to help you research regulations, draft initial communication templates, and brainstorm solutions to complex situations. This is not a substitute for legal advice, but it is a very helpful first step if you need quick information.
The agents who succeed in this environment are not the ones who close the most deals. They will shut them down without legal prosecution. Compliance can actually be a competitive advantage. Agents who treat these actions as non-negotiable will develop a reputation for integrity and professionalism that no lawsuit can extend.
Please print this checklist. Pin it to the side of your desk. Please review it monthly. Because the greatest danger for agents in today’s market is being uninformed.
Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook and YouTube.
