Realtor Standards of Practice Explained
Ethical vs. Unethical Conduct Under Article 16
Article 16 of the REALTOR® Code of Ethics is one of the most misunderstood—and most violated—sections in real estate. Its purpose is simple: protect existing client relationships while allowing fair competition.
Understanding what is ethical versus unethical is essential for protecting your license, your reputation, and your clients.
Ethical Conduct Under Article 16
Ethical behavior allows Realtors to compete openly while respecting exclusive agreements.
Realtors may:
Use aggressive or innovative business practices
Disagree with other Realtors over compensation
Market broadly through calls, mailers, and advertising
Contact represented consumers for a different type of service
Discuss future representation after an agreement expires
Speak with consumers who contact them unsolicited
Work with clients whose exclusive agreements have ended
Maintain broker-associate agreements when changing firms
Ethics support competition—but never interference.
Unethical Conduct Under Article 16
Unethical behavior typically involves bypassing consent, misusing MLS data, or failing to disclose relationships and compensation.
Realtors may not:
Target consumers known to be under exclusive agreements
Use MLS data to solicit represented clients
Provide services without confirming representation
Fail to disclose relationships or compensation at first contact
Manipulate compensation through offers
Cause clients to owe multiple commissions without consent
Pay associates without broker approval
Place signage without owner permission
Induce clients to cancel agreements when changing brokerages
These actions erode trust and violate professional standards.
Why This Matters
Most violations are not intentional—they come from misunderstanding. But intent does not excuse violations. Education is the strongest form of protection.
Final Thoughts
Being ethical does not make you less competitive, it makes you more credible. Realtors who understand and follow the Standards of Practice build stronger businesses, better relationships, and longer careers. Ethics aren’t a limitation. They’re a foundation.
If you want next, I can:
Turn this into a continuing education-style series
Create a downloadable SOP cheat sheet
Adapt this for new agent onboarding
Write captions that point people from social → blog
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