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You passed the licensing exam. But the Code of Ethics that governs this profession doesn’t end with a test score — it’s where your career begins, coach Darryl Davis writes.

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When a brand-new commercial pilot earns their wings, nobody expects them to know everything. But everyone expects them to know the rules, airspace restrictions and safety protocols, the non-negotiables that exist because cutting corners at 30,000 feet risks lives.

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Real estate isn’t aviation, but some of the same principles apply. When new agents enter this business, the public trusts that they understand the professional and ethical obligations that come with the license. The problem? Many don’t.

That’s not because they’re bad people, but because ethics education in most pre-licensing programs barely scratches the surface. And the gap between passing the exam and truly understanding professional responsibility is where careers are either built on solid ground or quietly set up to fail.

NAR Code of Ethics Articles and SOPs that are commonly overlooked

Here are the Articles and Standards of Practice (SOPs) from the National Association of Realtors Code of Ethics that agents most commonly ignore, misunderstand or violate — often without realizing they’ve crossed a line.

Fiduciary duty is not a buzzword

New agents hear the word “fiduciary” in class and promptly file it under “test vocabulary.” But fiduciary duty — the legal and ethical obligation to act in your client’s best interest above your own — is the foundation of everything you do.

It means recommending the best inspector, not the fastest one. It means presenting every offer to your seller, even the one that reduces your commission. It means giving honest pricing advice when the client is hoping for a higher number.

Fiduciary isn’t a concept. It’s a daily practice. And the moment you make a decision based on what’s easiest or most profitable for you, rather than what’s best for your client, you’ve violated the most fundamental obligation of your profession.

Confidentiality has real boundaries

One of the most common rookie mistakes is sharing client information that should remain private. A buyer’s maximum budget, a seller’s urgency to relocate, a client’s financial difficulties — these aren’t conversation starters at the office. It’s protected information.

New agents sometimes share these details with other agents, on social media or even casually at networking events, without understanding that they’ve just breached their duty of confidentiality, and that has the ability to cost your client negotiating leverage and potentially you your license.

Fair housing is more than a checklist

Most new agents can recite the protected classes under fair housing law. Far fewer can recognize steering when they’re doing it.

Saying, “You’d really love this neighborhood; it’s got great schools and young families,” or “This area might not be the best fit for you,” may feel like helpful guidance. But when those suggestions are influenced, consciously or not, by a client’s race, religion, familial status or other protected characteristic, that’s crossing the line.

Fair housing compliance is about examining your own assumptions every time you open your mouth. The best practice is simple: Let clients tell you their criteria, present properties that match, and never decide for them which neighborhoods they belong in.

Disclosure isn’t optional

New agents sometimes operate under the mistaken belief that if the seller doesn’t mention a defect, the agent doesn’t need to either. Wrong. Material facts — known conditions that could affect a buyer’s decision or the property’s value — must be disclosed regardless of whether your client brings them up.

The leaky basement, the HOA lawsuit, the neighbor’s encroaching fence — if you know about it, the buyer needs to know about it. Silence isn’t discretion. It’s liability.

Competence is an ethical obligation

This is the one nobody talks about, and it may be the most important. The Code of Ethics requires agents to only undertake work they are competent to perform. For new agents, that means acknowledging what you don’t know.

If you’ve never handled a short sale, a commercial lease, a 1031 exchange or a property with complex title issues, saying “I’ll figure it out” can be a disservice to your client. The ethical move is to seek mentorship, partner with an experienced agent or refer the client to someone who has the expertise.

Admitting a limitation isn’t weakness. It’s professionalism.

Advertising must be honest and attributable

Social media has turned every new agent into a pseudo-marketer overnight, and with that comes a flood of ethics violations agents often don’t recognize. Using sold data without context, implying you were the listing agent on a transaction your brokerage handled or failing to include your brokerage name in advertising — these aren’t minor oversights. They’re violations.

Every post, every flyer, every online ad must be truthful and must clearly identify your brokerage. The rules exist because consumers deserve to know exactly who they’re dealing with.

Cooperation with other agents isn’t optional

New agents sometimes view other agents as adversaries rather than as professionals working toward a shared goal: getting a transaction closed in the best interest of all parties. Refusing to return calls, withholding information, playing games with showing access or making the other agent’s job harder to give yourself an edge — none of this serves your client.

Cooperation between agents is both an ethical obligation and a practical necessity. The smoothest transactions happen when both sides are professional, responsive and transparent.

What you don’t know can end your career

Here’s the uncomfortable truth: Ignorance is not a defense. An NAR Code of Ethics violation doesn’t become less serious because you didn’t know the rule existed. Licensing boards, associations and courts don’t grade on a curve for rookies.

That’s why investing in ethics education beyond the minimum requirement is essential. Seek out continuing education that goes deeper than the basics. Find a mentor who will tell you the hard truths about where lines get crossed. Study real disciplinary cases so you understand what violations actually look like in practice, not just on a test.

The agents who build lasting, referral-driven careers are the ones who treat professional responsibility as a competitive advantage, not a burden.

When your clients know that you will always tell them the truth, protect their information, disclose what they need to know and never put your interests ahead of theirs — that’s not just ethics. That’s the foundation of a business that lasts.

Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.

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