T
he National Association of Realtors (NAR) has introduced new guidelines to emphasize ethical obligations of Realtors. These guidelines are aimed at ensuring that Realtors prioritize their clients' interests over their own commissions. The guidelines are outlined in a consumer guide published by NAR, which states that Realtors cannot make decisions or provide representation in a way that puts their own interests or commissions ahead of their clients' interests.

    The guide highlights three key aspects of the Realtor/client relationship:

    1. What buyers should expect: Realtors have an ethical duty to inform buyers about every home available for sale that meets their criteria, regardless of whether compensation is offered by the seller or if the compensation is less than what the buyer agreed to pay.

    2. What sellers should expect: Listing agents should explain to their sellers the benefits and costs of various types of marketing that can be done for a listing, and how potential buyers might respond. Realtors are ethically prohibited from telling a seller that their home will be hidden from buyers if they decline to offer a certain amount of compensation.

    3. On steering: NAR encourages Realtors to enter into written agreements with their clients to promote clarity and transparency. Such agreements can specifically help protect buyers from steering. Since a broker working with a buyer receives the amount the buyer has agreed to, the amount of any offer of compensation is irrelevant to the buyer-broker's compensation.

    NAR's campaign to educate (and reassure) consumers is aimed at addressing concerns around steering, offering new guidance for agents on its settlement FAQ page. The association is also reaching out directly to consumers through consumer materials such as documents, videos, and slides to prepare buyers and sellers for upcoming changes.