When a new commercial pilot gets their wings, no one expects them to know everything. But everyone expects you to know the rules, airspace restrictions, safety protocols, and other non-negotiables because dehorning at 30,000 feet puts your life at risk.
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Although real estate is not the airline industry, some of the same principles apply. When new agents enter the business, the public trusts that they understand the professional and ethical obligations that come with licensing. problem? Many people don’t.
Not because they’re bad people, but because the ethics education in most prelicensure programs only scratches the surface. And the gap between passing the exam and truly understanding the responsibilities of the profession lies in whether a career is built on a solid foundation or quietly set up to fail.
Often Overlooked NAR Code of Ethics Articles and SOPs
Here are the National Association of Realtors Code of Ethics provisions and standards of practice (SOPs) that are most commonly ignored, misunderstood, or violated by real estate agents. Often, we don’t even realize we’ve crossed the line.
Fiduciary duty is not a buzzword
When new agents hear the word “trustee” in class, they immediately register it in their “test vocabulary.” But fiduciary duty, the legal and ethical obligation to act in the best interests of our customers above our own, is the basis of all our actions.
This means recommending the best inspector instead of the fastest one. This means presenting all offers to the seller, even those that reduce commissions. That means providing honest pricing advice if the client wants a higher number.
Trustee is not a concept. It’s a daily practice. And the moment you base your decisions on what is easiest and most beneficial for you, rather than what is best for your client, you have violated your most basic professional obligations.
Confidentiality has real limits
One of the most common beginner mistakes is sharing customer information that should be kept private. A buyer’s maximum budget, a seller’s urgency to relocate, a client’s financial hardships – these are not conversation starters in the office. This is protected information.
New agents may share these details with other agents on social media or casually at networking events without understanding that they have breached confidentiality. This can jeopardize the client’s bargaining power and possibly result in loss of license.
Fair Housing is More than a Checklist
Most new agents can recite protected classes under the Fair Housing Act. Far fewer people can recognize steering inputs.
Saying, “You’ll really like this area, with great schools and lots of young families,” or “This area may not be the best fit for you,” may feel like helpful guidance. But if those suggestions are influenced, consciously or not, by the client’s race, religion, family status, or other protected characteristic, that crosses the line.
Fair housing compliance means testing your assumptions every time you open your mouth. Best practices are simple. Tell your clients your criteria, let them show you properties that match, and don’t let them decide which neighborhood they belong to.
Disclosure is not voluntary
New agents may operate under the mistaken belief that if the seller doesn’t mention a defect, the agent doesn’t have to mention it either. Wrong. Material facts (known conditions that may affect the buyer’s decision or the value of the property) must be disclosed whether or not the client brings them up.
Leaky basements, HOA lawsuits, neighbor-invading fences, etc. If you know about it, buyers should know about it too. Silence is not discretion. It’s a responsibility.
Competence is an ethical obligation
This is what no one talks about, and it’s probably the most important thing. The Code of Ethics requires agents to only undertake work that they are capable of performing. For new agents, that means recognizing what they don’t know.
If you’ve never dealt with short sales, commercial leases, 1031 exchanges, or real estate with complex title issues, saying “I’ll figure it out” can be disrespectful to your client. The ethical thing to do is to seek guidance, partner with an experienced agent, or refer your client to someone with expertise.
Admitting your limitations is not weakness. That’s professionalism.
Advertising must be honest and attributable
Social media has turned every new agent into a pseudo-marketer overnight, and with it comes a slew of ethical violations that agents are unaware of. Using sales data without context, implying that the brokerage firm is the listing agent for deals handled, or failing to include the brokerage firm’s name in the advertisement are not minor oversights. those are violations.
All posts, all flyers, and all online advertisements must be truthful and must clearly identify the intermediary. This rule exists because consumers have the right to know exactly who they are dealing with.
Cooperation with other agents is not optional
New agents may view other agents as adversaries rather than as professionals working toward a common goal of completing the transaction in the best interest of all parties. Refusing to return calls, withholding information, playing games with access privileges, or making other agents’ jobs harder to gain an upper hand all don’t help the client.
Cooperation among agents is both an ethical obligation and a practical necessity. The smoothest transactions occur when both parties are professional, responsive, and transparent.
What you don’t know can end your career
Here’s the uncomfortable truth. Ignorance is not a defense. A violation of the NAR Code of Ethics does not become less serious just because you were unaware of its existence. Licensing boards, associations, and courts don’t grade newcomers along a curve.
That’s why it’s essential to invest in ethics education beyond the bare minimum requirements. Seek continuing education that goes deeper than the basics. Find a mentor who will tell you the hard truth about where to cross the line. Study real-life disciplinary cases to understand what violations look like in practice, not just on the test.
Agents who build lasting, referral-driven careers treat their professional responsibilities as a competitive advantage rather than a burden.
It’s more than just ethics when your clients know that you will always tell the truth, protect information, reveal what you need to know, and never put your interests above theirs. That is the basis of a long-lasting business.
