Introduction
If you've been in real estate for a few years, you've probably seen or heard about some of these issues firsthand.
They don't always look like obvious ethical violations. Sometimes it's a listing agent making it unusually difficult for another buyer's agent to schedule a showing. Sometimes an offer isn't presented as quickly as it should be. Other situations involve discrimination, conflicts of interest, property disclosures, or an agent's commission becoming more important than the client's interests.
After spending years in real estate, you learn that ethics isn't simply about memorizing a professional code. It's also about recognizing gray areas and understanding when professional judgment, cooperation, honesty, and the client's best interests need to come before an agent's personal interests.
This article examines 10 real estate ethics and professional-conduct issues that agents may encounter in actual transactions. Some situations may involve violations of the REALTOR® Code of Ethics, fair housing laws, state requirements, or other rules depending on the circumstances. Others are better understood as poor professional conduct or potential conflicts of interest.
The goal isn't to accuse every agent who encounters one of these situations of misconduct. It's to examine the decisions that can create ethical problems—and what real estate professionals should do instead.
Real Estate Ethics Is About More Than Following the Rules
The National Association of REALTORS® Code of Ethics establishes professional duties for REALTORS®. The current 2026 Code emphasizes several principles that are directly relevant to the situations discussed here, including protecting and promoting client interests, treating parties honestly, cooperating with other brokers, avoiding misrepresentation and concealment of pertinent facts, providing equal professional services, and maintaining truthful communications.
But there's an important distinction between an actual ethics violation and conduct that is simply questionable or unprofessional.
For example, pricing a home aggressively isn't automatically unethical. A seller and listing agent may intentionally choose a pricing strategy designed to generate multiple offers.
The ethical question is different:
Is the strategy based on the client's interests and an honest assessment of the market, or is the agent manipulating the seller because a faster transaction benefits the agent?
That distinction matters throughout real estate.
1. Restricting Home Showings to Favor Your Own Buyer
One of the most obvious conflicts can occur when a listing agent also has a buyer who wants the property.
Imagine an agent lists a property and then has a buyer on their own team who is interested in purchasing it. The agent controls access to the property and begins making it difficult for other buyer's agents to schedule showings.
Maybe appointments are delayed.
Maybe calls aren't returned.
Maybe available showing times suddenly become extremely limited.
Meanwhile, the agent's own buyer receives convenient access.
That creates a serious professional concern because the listing agent has responsibilities to the seller, not simply an incentive to get their own buyer into the transaction.
NAR's Article 3 requires REALTORS® to cooperate with other brokers except when cooperation isn't in the client's best interest. Standard of Practice 3-10 explains that this includes making listed property available to other brokers for showing when doing so is in the seller's best interest.
The important question is whether the seller's interests are actually driving the access strategy.
What ethical conduct looks like: Follow the seller's instructions, provide reasonable access consistent with those instructions, and avoid manipulating showings for personal financial advantage.
2. Failing to Present or Delaying Offers
Few things create more potential for conflict than competing offers.
A listing agent may receive an offer from a buyer represented by another agent while also having a buyer of their own who wants the property. The temptation to delay, minimize, or otherwise manipulate the competing offer can be significant.
There can also be situations where an agent prefers a particular offer because of compensation, a relationship with another agent, or the desire to control both sides of the transaction.
The seller, however, is the client.
NAR Article 1 states that REALTORS® representing clients must protect and promote their client's interests while treating all parties honestly.
The Code also specifically addresses offer handling. Standard of Practice 3-2 prohibits REALTORS® from delaying or withholding delivery of a buyer's offer while attempting to negotiate compensation.
This is an area where agents should be particularly careful about allowing their own financial interests to influence transaction decisions.
What ethical conduct looks like: Present offers according to applicable law, the client's instructions, brokerage procedures, and professional obligations, and keep the client informed.
3. Discriminating Against Buyers or Sellers
This is one issue that moves well beyond questionable professional conduct.
Real estate professionals are subject to fair housing laws as well as applicable professional standards. NAR Article 10 prohibits REALTORS® from denying equal professional services based on protected characteristics and specifically addresses steering.
The problem can take many forms.
An agent might:
- Refuse to work with certain buyers
- Provide different levels of service
- Make it more difficult for some buyers to see properties
- Steer buyers toward or away from particular neighborhoods
- Provide different information to buyers
- Make assumptions about where someone would feel comfortable living
One of the most significant examples came from Newsday's Long Island Divided investigation.
Newsday conducted 86 paired tests involving prospective buyers with similar financial profiles but different racial or ethnic backgrounds. The investigation reported evidence of disparate treatment in 40% of the tests, while its fair-housing experts identified evidence suggesting fair-housing violations in 34 cases. Newsday emphasized that those expert assessments were not legal conclusions.
The investigation also reported evidence suggesting steering in 21 of the 86 paired tests.
This is an important lesson for real estate agents: even when an agent believes they are helping a buyer, assumptions about race, ethnicity, religion, schools, neighborhoods, or community demographics can create serious fair-housing concerns.
What ethical conduct looks like: Treat clients and customers equally, avoid steering, understand fair-housing obligations, and direct clients to objective property information rather than making decisions based on protected characteristics.
4. Ignoring Calls or Showing Requests From Other Agents
Not every delayed phone call is an ethics violation.
Real estate agents are busy. Showings get missed. Messages get buried. Emergencies happen.
The problem occurs when an agent intentionally stops cooperating with other agents because doing so benefits their own transaction.
For example, an agent might repeatedly ignore calls from buyer's agents because they want their own buyer to have the first opportunity to see the property.
Or an agent might make another brokerage jump through unnecessary hoops simply because they don't want to cooperate.
That behavior can hurt the seller by reducing exposure to potential buyers.
NAR's Article 3 addresses cooperation between REALTORS®, while Standard of Practice 3-8 states that REALTORS® must not misrepresent the availability of access to show or inspect a listed property.
What ethical conduct looks like: Communicate professionally, provide accurate information about access, and cooperate when cooperation serves the client's interests.
5. Manipulating a Listing Price for Personal Gain
This one requires some nuance.
Pricing a home below market value is not automatically unethical.
A seller may deliberately price a property aggressively to generate interest, create competition, attract multiple offers, or pursue a particular marketing strategy.
The problem is when an agent manipulates pricing primarily for personal benefit or misrepresents the market to the client.
Consider an agent who recommends a price significantly below what they believe the property could reasonably sell for because they want a fast transaction and a quick commission.
That is very different from an agent presenting a well-supported pricing strategy and explaining the risks and potential benefits to the seller.
The ethical question is:
Whose interests are driving the pricing decision?
Real estate agents have a professional responsibility to put the client's interests first when acting as an agent.
What ethical conduct looks like: Provide an honest market analysis, explain pricing options and risks, document the client's instructions, and avoid manipulating pricing solely to accelerate the agent's compensation.
6. Failing to Disclose Known Property Defects or Material Facts
Property condition is another area where ethics and legal obligations can overlap.
A real estate professional may learn about a significant problem with a property through a seller disclosure, inspection report, prior transaction, conversation with the seller, or other source.
Simply hoping the problem doesn't come up isn't an ethical solution.
NAR Article 2 states that REALTORS® should avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or transaction. The Code also recognizes that REALTORS® aren't required to discover latent defects or provide expertise outside their professional licensing requirements.
That distinction is important.
An agent isn't a structural engineer, electrician, plumber, or environmental specialist.
But when an agent has knowledge of a pertinent fact that should be addressed, deliberately concealing it can create serious problems.
Examples might include known:
- Water intrusion
- Roof problems
- Structural concerns
- Unpermitted work
- Significant property damage
- Other material conditions
State disclosure laws vary, so agents should understand the requirements where they practice.
What ethical conduct looks like: Don't misrepresent or conceal pertinent information, understand the limits of your expertise, and recommend appropriate professional inspections or advice when necessary.
7. Misrepresenting Information During a Real Estate Transaction
Real estate transactions depend heavily on information.
Buyers need accurate information from their agents.
Sellers need accurate information from their agents.
Agents need accurate information from cooperating professionals.
When someone begins manipulating information to gain an advantage, trust breaks down quickly.
Misrepresentation can involve:
- The existence or status of offers
- Property condition
- Buyer qualifications
- Seller motivation
- Transaction deadlines
- Negotiations
- The agent's authority
- Material facts
- Marketing claims
NAR Article 12 requires REALTORS® to be honest and truthful in real estate communications and to present a true picture in advertising, marketing, and other representations.
Sometimes the temptation is subtle.
An agent may exaggerate interest in a property because they want a buyer to make a stronger offer.
Another agent may imply that a competing offer is stronger than it actually is.
A professional should be very careful about where legitimate negotiation ends and misrepresentation begins.
What ethical conduct looks like: Communicate facts accurately, distinguish facts from opinions, and never create false information simply to influence a transaction.
8. Making It Unnecessarily Difficult to Access a Property
Access is one of the most important practical parts of a real estate transaction.
Buyers need to see properties.
Inspectors need access.
Appraisers may need access.
Contractors may need access.
Other real estate professionals may need access to perform legitimate transaction-related activities.
Sometimes restrictions are completely legitimate. A seller may have specific showing instructions. Tenants may have rights. Security concerns may exist. Certain properties may require special procedures.
The problem occurs when an agent creates unnecessary barriers that aren't actually based on the owner's instructions or legitimate transaction requirements.
NAR's Standard of Practice 3-8 specifically prohibits REALTORS® from misrepresenting the availability of access to show or inspect a listed property.
What ethical conduct looks like: Follow the seller's authorized instructions, communicate access requirements accurately, and avoid creating artificial obstacles for other participants in the transaction.
9. Failing to Disclose a Personal or Financial Interest
Conflicts of interest can become particularly complicated in real estate because agents frequently encounter properties and transactions that they may personally want.
Imagine a listing agent decides they would like to purchase their own listing.
Or an agent has a financial interest in a property.
Or an agent has a relationship with someone involved in the transaction that could affect their objectivity.
The problem isn't necessarily that an agent has a personal interest.
The problem is failing to properly disclose it and allowing the conflict to influence the client's interests.
NAR's current Code includes disclosure requirements involving present ownership interests and contemplated interests in real estate transactions.
This is an area where state law and brokerage policies also matter.
What ethical conduct looks like: Identify potential conflicts early, disclose them as required, follow applicable law and brokerage procedures, and give clients enough information to make informed decisions.
10. Putting Commission Ahead of the Client
This may be the biggest ethical issue behind many of the others.
Real estate agents are paid to represent clients and provide professional services. They also have a personal financial interest in closing transactions.
Those interests don't automatically conflict.
The problem begins when the commission becomes more important than the client's interests.
That can influence decisions about:
- Which properties a buyer sees
- Which offer a seller accepts
- How quickly an agent wants to close
- Whether an agent recommends additional inspections
- How a property is priced
- How offers are communicated
- Whether an agent cooperates with another brokerage
- Whether an agent discloses a conflict
NAR's Article 1 makes the principle straightforward: when representing a client, the REALTOR®'s obligation to protect and promote that client's interests is primary, while still requiring honest treatment of all parties.
The ethical question is worth asking whenever a difficult transaction decision arises:
Would I make the same recommendation if my compensation were exactly the same regardless of the outcome?
That question doesn't answer every ethical dilemma, but it can reveal when personal financial incentives are beginning to influence professional judgment.
What Buyers and Sellers Should Know
Although real estate agents are the primary audience for this discussion, buyers and sellers have an important role too.
Consumers don't need to memorize the NAR Code of Ethics.
But they should understand what professional representation should generally look like.
A buyer or seller should expect their real estate professional to communicate honestly, explain important decisions, disclose applicable conflicts, handle transaction information appropriately, and provide professional service without discrimination.
If something doesn't seem right, ask questions.
For example:
- Why wasn't another offer presented?
- Why is this property difficult to schedule?
- Why are certain homes being recommended and others ignored?
- Does the agent have a financial interest in this transaction?
- Is there information about the property that I should discuss with an inspector or other professional?
- Is the recommendation being made because it's best for me or because it's better for the agent?
Those questions don't automatically mean an agent has done something wrong. But they can help consumers better understand what is happening.
Ethics vs. Professional Conduct: Why the Difference Matters
One of the biggest lessons from real estate experience is that not every bad decision is automatically a formal ethics violation.
An agent can be:
- Unresponsive
- Difficult to work with
- Unprofessional
- Aggressive
- Poor at communication
- Self-interested
- Disorganized
without every instance necessarily constituting a violation of the NAR Code.
At the same time, behavior that appears minor in isolation can become much more serious when it is intentional, repeated, discriminatory, deceptive, or contrary to a client's interests.
That's why experienced agents develop something beyond rule knowledge: professional judgment.
The question isn't only:
"Is this allowed?"
It is also:
"Is this the right thing to do for my client and the transaction?"
How Real Estate Agents Can Strengthen Ethical Decision-Making
Real estate-specific ethics education is important, including any ethics or continuing-education requirements that apply to an agent's license or professional membership.
But broader business ethics education can also help agents develop a more structured approach to difficult decisions.
For example, Coursera's Success with Integrity: Business Ethics Foundation focuses on ethical decision-making, conflicts of interest, transparency and truthfulness, codes of conduct, and real-world ethical scenarios. Coursera currently lists it as a beginner-level course with approximately five hours of content and a shareable certificate.
Learn more about Success with Integrity: Business Ethics Foundation on Coursera
Another option is Practical Ethics for Businesses and Individuals, which teaches a structured approach to recognizing moral dilemmas, identifying competing obligations, distinguishing legal permissibility from ethical permissibility, and making defensible decisions. Coursera currently lists it as a beginner-level course with approximately four hours of content.
Explore Practical Ethics for Businesses and Individuals on Coursera
These courses are not substitutes for required real estate ethics or licensing education. Their value is broader: they can help professionals think through conflicts, competing interests, transparency, and difficult decisions.
Is Ethics Training Worth It for Real Estate Agents?
For an experienced real estate professional, ethics training can sometimes feel repetitive.
You've heard about honesty.
You've heard about conflicts of interest.
You've heard about fair housing.
You've heard about fiduciary responsibilities.
But real-world transactions aren't always presented as obvious ethical questions.
Instead, the difficult situations tend to sound like:
"Can I do this?"
"The client said it's okay."
"Everyone in the market does it."
"I'm not technically breaking a rule."
"If I don't do it, another agent will."
"It's better for my client if I control this part of the transaction."
Those are the moments when professional judgment matters.
Ethics training is most valuable when it helps agents recognize those gray areas before they become complaints, damaged relationships, lawsuits, fair-housing investigations, disciplinary proceedings, or reputational problems.
Building a Stronger Real Estate Ethics Practice
The strongest real estate professionals don't view ethics as something they deal with only when required to complete continuing education.
They build ethical decision-making into how they conduct business.
That means putting client interests ahead of personal financial incentives, cooperating with other professionals, communicating honestly, avoiding discrimination and steering, handling offers appropriately, respecting property access, disclosing relevant conflicts, and recognizing when an issue requires advice from a broker, attorney, inspector, or other qualified professional.
The real estate business is built on trust.
A buyer trusts an agent to help navigate one of the largest financial decisions of their life. A seller trusts an agent to represent their interests while marketing and negotiating their property. Other agents depend on each other to cooperate and communicate throughout transactions.
After you've been in real estate for a few years, you inevitably hear stories about situations where something didn't go quite right.
The best lesson isn't simply learning what someone else did wrong.
It's learning to recognize the decision point before you're the one making it.
Continue Your Professional Development
Real estate professionals need more than market knowledge. Strong communication, ethical decision-making, negotiation, leadership, compliance awareness, and business skills can all contribute to a successful career.
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About the Business Training Media Editorial Team
This article was researched and written by the Business Training Media Editorial Team, with a real-world perspective informed by experience in real estate transactions and professional business environments. We publish practical content covering real estate, business strategy, leadership, workplace skills, artificial intelligence, cybersecurity, compliance, career development, online learning, professional certifications, and organizational excellence.
Our goal is to provide practical, research-backed insights that help professionals, business leaders, and consumers make better-informed decisions.
Note: This article is for educational purposes and is not legal advice. Whether particular conduct violates the NAR Code of Ethics, fair housing laws, state law, licensing requirements, or other rules depends on the facts and jurisdiction. Real estate professionals should consult their broker, applicable professional association, licensing authority, or qualified legal counsel when appropriate.