NAR Code of Ethics 2026: Key Changes Every Real Estate Agent Must Know

The National Association of REALTORS® (NAR) has implemented significant changes to its Code of Ethics and Standards of Practice, effective January 1, 2026. These amendments reflect the evolving real estate landscape, particularly following NAR's landmark 2024 settlement agreement that transformed how buyer broker compensation works across the industry.

Whether you're preparing for your real estate licensing exam or a practicing REALTOR® staying current with professional obligations, understanding these changes is essential. The 2026 updates touch on everything from compensation disclosures to harassment definitions—topics that appear frequently on state and national real estate exams.

The 17 Articles: Foundation of REALTOR® Ethics

The Code of Ethics consists of 17 Articles organized into three categories of duties. Understanding this structure is critical for exam success, as questions frequently test your knowledge of which duties apply in specific scenarios.

Duties to Clients and Customers (Articles 1-9)

• Article 1: Protect client interests while treating all parties honestly
• Article 2: Avoid exaggeration, misrepresentation, or concealment of pertinent facts
• Article 3: Cooperate with other brokers when it serves client interests
• Article 4: Disclose any ownership interest in property being purchased
• Article 5: Disclose any ownership interest in property being sold
• Article 6: Do not collect commissions without employer knowledge
• Article 7: Accept compensation from only one party without disclosure and consent
• Article 8: Keep client funds in separate trust accounts
• Article 9: Ensure all agreements are in writing

Duties to the Public (Articles 10-14)

• Article 10: No discrimination based on protected classes
• Article 11: Provide competent service in areas of expertise
• Article 12: Present a true picture in advertising and marketing
• Article 13: Do not practice law without authorization
• Article 14: Cooperate with ethics investigations

Duties to REALTORS® (Articles 15-17)

• Article 15: Do not make false statements about other practitioners
• Article 16: Respect exclusive representation agreements
• Article 17: Use mediation and arbitration over litigation for disputes

Major 2026 Amendment: Article 7 Compensation Changes

The most significant change for 2026 involves Article 7, which governs dual compensation arrangements. Previously, REALTORS® accepting compensation from multiple parties were required to disclose this to "all parties" in the transaction. The amended language now requires disclosure only to "the REALTOR®'s client or clients."

"In a transaction, REALTORS® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the REALTOR®'s client or clients."

This change has practical implications following the 2024 settlement agreement. Buyer brokers who are compensated by multiple sources—such as receiving a portion from the listing side while the buyer pays the remainder—no longer must disclose the specific terms of their buyer-broker agreement to sellers or listing agents. This protects buyer negotiating positions while maintaining transparency with the buyer client.

Standard of Practice 3-4: Deleted

Standard of Practice 3-4, which previously required listing brokers to disclose variable commission arrangements to cooperating brokers, has been eliminated entirely. This deletion recognizes that the modern real estate transaction no longer operates on a unilateral MLS compensation offer model.

Under the new framework, buyer broker compensation is negotiated directly between buyers and their representatives, then potentially supplemented or covered by sellers through separate negotiation. The old disclosure requirement no longer fits this transactional reality.

Standard of Practice 17-4: Arbitration Award Limits

The amended Standard of Practice 17-4 places new caps on arbitration awards in procuring cause disputes. Under three specific scenarios, arbitration awards are now limited to the lesser of:

• The amount offered as compensation by the listing broker, OR
• The amount specified in the valid buyer representation agreement between the buyer and the complainant

This prevents buyers from being caught in disputes where an arbitration award might exceed what was agreed in their buyer-broker agreement, providing consumer protection while clarifying broker compensation expectations.

Article 10 Updates: Harassment and Discrimination

Article 10 prohibits discrimination based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. The 2026 updates bring important clarifications through Standard of Practice 10-5 and four new case interpretations.

Standard of Practice 10-5 Clarification

The amended Standard of Practice 10-5 now includes a specific definition of "harassment" aligned with NAR's Member Code of Conduct. This provides local and state associations clearer guidance on how to fairly and consistently enforce Article 10 provisions.

Four New Case Interpretations

NAR has added four case interpretations to guide Article 10 enforcement:

• Case #10-6: Hate speech posted on social media violates Article 10 when the account is used for professional purposes, even if labeled "personal"
• Case #10-7: Political affiliation harassment claims are not actionable—political status is not a protected class under the Code
• Case #10-10: Religious doctrine discussions in study groups do not violate Article 10 absent professional representation context
• Case #10-11: Prominent display of Confederate flags in listing photos constitutes discriminatory harassment

These case interpretations are particularly important for exam preparation, as they illustrate how abstract ethical principles apply to real-world scenarios involving social media conduct, free speech boundaries, and marketing practices.

Why These Changes Matter for Your Exam

Real estate licensing exams test both federal fair housing law and REALTOR® Code of Ethics principles. While not all licensees are required to be NAR members, the Code of Ethics represents industry best practices that inform exam content. Key testable concepts from the 2026 changes include:

• Compensation disclosure obligations and when they apply
• Protected classes under Article 10 (expanded beyond Fair Housing Act)
• The distinction between ethical violations and protected speech
• Arbitration procedures and award limitations
• Social media conduct standards for real estate professionals

Timeline and Implementation

All changes took effect January 1, 2026. NAR has committed to posting revised case interpretations to nar.realtor no later than January 31, 2026. State and local associations are updating their enforcement procedures to align with the new definitions and standards.

For practicing REALTORS®, the biennial ethics training requirement includes these updated provisions. For exam candidates, expect questions reflecting these changes on exams administered after January 2026.

Key Takeaways

• Article 7 now requires dual compensation disclosure only to clients, not all parties
• Standard of Practice 3-4 (variable commission disclosure) has been deleted
• Arbitration awards are capped at buyer-broker agreement amounts
• Harassment has a specific definition aligned with the Member Code of Conduct
• Social media conduct can trigger Article 10 violations even on "personal" accounts
• Political affiliation is not a protected class under the Code of Ethics