Dear Friends and Colleagues,
Our commitment to the REALTOR® Code of Ethics is what sets our profession apart. Most ethics violations don’t begin with bad intent. They often start with small decisions — a delayed MLS update, an incomplete disclosure, or a quick text sent in frustration.
This newsletter shares a few real examples and a reminder of the time, cost, and disruption an ethics complaint can create. It also highlights the important work of our Professional Standards volunteers, who ensure every case is handled fairly and confidentially.
My hope is that these reminders help all of us stay focused on the fundamentals that protect our reputation and the reputation of our profession.
Thank you for the professionalism you bring to our industry every day.
Warm Regards,
John
Many Ethics Violations Start Out Small:
Beware: A seemingly minor oversight could lead to a complaint and a fine faster than you think.
Could this happen to you? >
Real Ethics Cases. Real Fines. Preventable Mistakes.
These aren’t horror stories. They’re real cases from REALTORS® who probably thought, “It’s not a big deal.” …But it was.
Quick Ethics Check:
- Is the MLS status accurate?
- Have I disclosed everything material?
- Is the advertising truthful?
- Would this text/email hold up in a hearing?
- Is the agreement signed?
Recent Ethics Violations Cost Members Thousands $$
Recent disciplinary actions published by C.A.R. reveal consistent patterns in ethics violations. Most involve Articles 1, 2, and 12 and stem from:
- Incomplete disclosure
- Careless communication
- Inaccurate MLS information
- Weak supervision of new agents
In many cases, the issue wasn’t malicious intent—it was misunderstanding how the Code of Ethics applies in everyday situations. The most serious fines—up to $7,000—were associated with concealment of property defects and improper handling of client funds.
The Hidden Costs of An Ethics Complaint
(C.A.R. login required to access page.)
The cost of an ethics case is rarely just a fine. It can involve a lot of time, money, and your reputation.
Most REALTORS® know the Code of Ethics exists. What many don’t realize is the real cost of an ethics complaint — even before a decision is made.
From the moment a complaint is filed to the time a hearing concludes and the case is ratified and closed, the process typically takes four to five months.
That’s four to five months spent gathering documentation, reviewing evidence, preparing responses, coordinating with brokers, and attending hearings.
Even when a REALTOR® believes they did nothing wrong, the time, stress, and business disruption can be significant.
And if a violation is ultimately found, the consequences may include fines of up to $15,000, suspension or termination of membership, and publication of a member’s name, photo, and case details on C.A.R.’s website.
In other words, the cost of an ethics case is rarely just a fine. It can involve time, money, and reputation.
The Professional Standards process exists for a reason. The goal is education and professionalism — not punishment. The REALTOR® Code of Ethics helps ensure honest dealings, transparency in advertising and MLS information, and fairness to clients, the public, and other REALTORS®.
Behind the scenes, the system relies on trained Professional Standards and Grievance volunteers who devote hours reviewing cases, serving on hearing panels, and ensuring the process is fair and unbiased.
All Professional Standards matters are strictly confidential, and volunteers sign agreements to uphold confidentiality and impartiality for every case they review.
Simply put, the system would not work without them.
The best way to avoid the time, expense, and stress of an ethics complaint is simple: Follow the fundamentals of the Code of Ethics. When in doubt, ask yourself one simple question:
Would I be comfortable explaining this decision in an ethics hearing?
If the answer is not a confident “Yes,” it’s worth taking another look.
Transparency, Accuracy, Professionalism are Non-Negotiable
Recent ethics violation cases provide valuable reminders for every member. While each situation is unique, the lessons are consistent: transparency, accuracy, and professionalism are non-negotiable.
Partners In Compliance
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