Ethics Corner

Ethics Corner

Each quarter, we will spotlight key ethical topics and Articles from the REALTOR® Code of Ethics, offering practical insight into how they apply to real estate practice. Ethics Corner is designed to help members uphold the highest standards of professionalism, fairness, and integrity across Missouri real estate.
Ethics Corner Article 2
Published July 14, 2026

Title: Business Practices vs. Ethical Behavior

The housing market has continued to show signs of recovery throughout most of the country.  However, desperate times lead to desperate measures and can result in unethical behavior. The lack of listed properties, for instance, can lead to a competitive marketplace with aggressive marketing and tactics that often verge on being unethical.

The following are a few real estate issues that may be prevalent in some areas of the country and totally unknown in other areas.  However, all are representative of situations where a question of ethical behavior on the part of the agent may arise.

  • Office Exclusives/Pocket Listings – Acquiring and marketing a listing only within the firm rather than through the MLS. There may be situations where this type of marketing is in the seller’s best interest, and the practice is not necessarily unethical if the seller instructs the broker to market in this fashion. However, if done incorrectly or without seller consent, it could run afoul of the standard for broker cooperation as suggested in Article 3 and possibly Article 1 of the Code. NAR recently released a new resource to help with guidance on this topic.
  • “No Offers Presented Until Next Tuesday” – Once again, so long as done in the client’s best interest and on their instructions, this instruction that seller will review and consider offers at a set time or date may be included in the advertising or on the MLS . However, REALTORS® should be aware that Article 1 Standard of Practice 1-6 states all offers shall be presented “objectively and as quickly as possible” and ensure that any deviation is based on seller’s instructions and their best interests.
  • Escalation Clause – This is when the buyer says they will meet the highest offer and raise it by “x” number of dollars. Generally a buyer’s “top dollar” would be considered confidential information (Article 1, SOP 1-9) and not disclosed to the opposing party in a transaction. This can get complicated when several of the multiple offers have escalation clauses.

The National Association of REALTORS® developed the Code of Ethics that became a mandatory requirement for membership.  In addition, they provide the Pathways to Professionalism, a list of professional courtesies or etiquette REALTORS® should consider in their relationships with clients, customers and peers.

At the June REALTOR® Legislative Meeting, NAR introduced a new resource on their website, “The Code of Ethics is Good Business,” which organizes the Code of Ethics Standards of Practice by where they typically occur in real estate transactions and groups them by phase rather than listed numerically.  This resource make the Standards easier to reference and apply in everyday business and helps REALTORS® connect ethical practice with real-world transactions.

Hopefully, this and the many other resources NAR provides will help you navigate your daily business practices ethically.

Ethics Corner Article 1
Published April 10, 2026

Title: The Importance of Disclosing Pertinent Facts

As REALTORS® navigate the challenging world of real estate, many factors come into play when dealing with real estate transactions.  From the ever changing market to handling clients with all kinds of needs, it is important to keep in mind what issues you could face that could jeopardize your clients.  

 One of the most cited Articles of the Code is Article 2, the Disclosure Article. I have administered many hearings and complaints that have cited Article 2 are steadily increasing. Reasons as to why certain pertinent information about a property or transaction has been withheld range from, “My client told me not to mention it and I do what my client tells me.” to, “If it’s not on the Seller’s Disclosure, it’s not my responsibility to tell them, it’s the Sellers”.

 Article 2 states that REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.

To those that question the importance of disclosure, here are a few reasons why you should:

  • Ensures informed decision-making - buyers rely on accurate information when buying and selling property such as property value, current condition, past incidents and environmental hazards. 
  • Builds trust- full and honest disclosure creates trust with your client and your fellow professionals while assuring their decisions are based on facts, not assumptions.
  • Reduces legal and financial risk – failure to disclose pertinent information can lead to breach of contract, lawsuits and penalties.
  • Financial Protection - protects the seller from disputes and costly litigation
  • Maintains Professional Standards – REALTORS® have a duty to avoid concealing pertinent facts, even if the seller does not mention it and not doing so could result in an ethics complaint being filed.

To quote our Preamble: The term REALTOR® has come to connote competency, fairness and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations.  No inducement of profit and no instruction from clients ever can justify departure from this ideal!


If you have questions regarding the Ethics Corner, please contact Tracey Yost - tracey@morealtor.com or call 573-445-8400 ext. 1280.