If you’re a real estate agent, you probably enjoy the freedom that comes with being an independent contractor.

You make your own schedule. You build your own business. You decide how you market yourself, where you spend your time, and how you work with your clients.

That independence is a big part of what makes a real estate career so appealing.

But there’s an important question behind all that freedom:

What actually makes a real estate agent an independent contractor?

In 2026, that question is getting plenty of attention.

Being a 1099 Isn’t the Whole Story

One of the easiest assumptions to make is:

“I’m paid on a 1099, so I’m automatically an independent contractor.”

Not quite.

Worker classification can depend on several factors, and different laws can use different tests.

The IRS has specific rules for licensed real estate agents. In general, agents can qualify as statutory nonemployees for federal tax purposes when substantially all of their compensation is based on sales or other output rather than hours worked, and their written contract says they will not be treated as employees for federal tax purposes.

In other words, how you’re paid and how your relationship is structured both matter.

And that’s where things get interesting.

2026 Brings a New Twist

The U.S. Department of Labor proposed a new rule in February 2026 that would change how worker classification is evaluated under the Fair Labor Standards Act.

The proposed approach focuses heavily on two questions:

How much control does the company have over the worker?

And:

Does the worker have a real opportunity to make a profit or suffer a loss?

Other factors can also come into play, including the skills required, how permanent the relationship is and whether the work is part of the company’s overall operation.

As of August 2026, the proposal has not become a final rule. But it is an important development for real estate professionals to watch.

Why?

Because independence isn’t just about what your contract says. It’s also about how the relationship actually works.

So, What Does “Independent” Really Mean?

Think about your typical real estate agent.

You aren’t waiting for someone to hand you a list of tasks every morning.

You’re probably:

• Finding your own clients
• Building your personal brand
• Generating leads
• Setting your own appointments
• Managing your schedule
• Paying for some of your own business expenses
• Choosing how to market your business
• Investing time and money into growing your business
• Earning more when you close more business

That’s the entrepreneurial side of real estate.

And it’s an important part of the independent-contractor model.

Of course, brokers still have responsibilities. They have to supervise licensed activity, follow state regulations, protect consumers and make sure transactions are handled properly.

Supervision is not the same thing as treating every agent like a traditional employee.

That’s an important distinction.

Your Independent Contractor Agreement Matters

Here’s where the paperwork comes in.

A good independent-contractor agreement isn’t just something you sign during onboarding and forget about.

It should accurately describe the relationship between the brokerage and the agent.

That can include things like:

• How the agent is compensated
• Who pays for business expenses
• Marketing responsibilities
• Use of office equipment and technology
• Insurance responsibilities
• Tax responsibilities
• The agent’s ability to operate independently

But here’s the catch:

The contract and reality need to match.

You can’t simply write “independent contractor” at the top of an agreement and call it a day.

If the day-to-day relationship looks completely different, that could create problems.

A Recent Court Case Offers an Important Reminder

A case involving Weichert in New Jersey also brought attention to the issue.

The case involved the classification of real estate sales associates and whether brokerage agreements could establish their status as independent contractors under New Jersey’s real estate licensing laws.

The New Jersey Supreme Court ultimately found that the state’s real estate licensing law allowed brokers to affiliate salespeople as either employees or independent contractors.

The takeaway isn’t that one court case answers every independent-contractor question across the country.

It doesn’t.

The bigger lesson is that state law matters.

What works in one state may not automatically work in another.

That’s one reason brokers and agents should pay attention to both federal developments and the laws in their own states.

What Should Brokers Do in 2026?

This doesn’t mean brokers need to panic and rewrite everything tomorrow.

But it is a good excuse to take a fresh look at how your brokerage operates.

Ask yourself:

Does our contract reflect how we actually work with agents?

Do our compensation practices support the independent-contractor model?

Do agents have meaningful control over their own businesses?

Are our policies necessary for legal and regulatory compliance, or are we creating unnecessary employee-style requirements?

And perhaps most importantly:

Would our paperwork and our everyday practices tell the same story?

If the answer is yes, that’s a good place to be.

If the answer is “well…maybe,” it may be time for a conversation with your attorney.

And What About Agents?

Agents should understand what being an independent contractor actually means, too.

The freedom is great—but so is the responsibility.

You are essentially running a small business.

That means thinking about taxes, marketing, insurance, technology, business expenses and the cost of generating your own income.

The upside?

You have the opportunity to build something that’s truly yours.

Your income isn’t necessarily tied to a clock.

Your business can grow as your skills, relationships and client base grow.

That’s a pretty powerful trade-off.

The Bottom Line for 2026

Independent-contractor status isn’t going away—but the rules surrounding it continue to evolve.

Between federal rulemaking, state laws and court decisions, brokers and agents have plenty to keep an eye on.

The good news is that the basic concept of an independent real estate professional remains familiar:

You run your business. You create opportunities. You take on the risks. And you share in the rewards.

The key is making sure the legal agreement, compensation structure and day-to-day relationship all support that model.

So, if you’re a broker, this is a good year to review your agreements and policies.

If you’re an agent, it’s a good year to understand exactly what your independent-contractor agreement means.

And if you’re not sure?

Don’t guess. Talk to a qualified attorney or tax professional who understands real estate and the laws in your state.

Because in real estate, it’s always better to catch a problem before it becomes a transaction.

This article is for general informational purposes only and is not legal, tax or employment advice. Independent-contractor rules vary by state and may change as federal and state laws and regulations develop. Consult qualified professionals about your specific situation.

Source: REALTOR® Magazine
“A Win in the Fight for IC Status”
National Association of REALTORS®

The real estate profession has always been about helping people find a place to build their lives. In 2026, that responsibility extends beyond buying and selling homes—it includes creating an environment where every client has an equal opportunity to achieve their housing goals.

Fair housing is more than a legal requirement. It is a professional standard that reflects integrity, accountability, and respect for every individual. Today’s consumers expect real estate professionals to provide knowledgeable guidance free from bias, assumptions, or unequal treatment.

Every Client Deserves the Same Exceptional Experience

Each client brings a unique story, financial situation, and vision for the future. The role of a real estate professional is to listen carefully, provide accurate information, and present options based on the client’s stated preferences—not personal opinions or stereotypes.

Consistency matters. Every buyer, seller, landlord, tenant, and investor should receive the same level of communication, access to available properties, market insights, and professional service.

Understanding Today’s Fair Housing Landscape

Communities continue to evolve, and so do the challenges surrounding housing access. Rising home prices, limited inventory, changing demographics, and advances in technology all influence how people search for and secure housing.

Real estate professionals can make a positive impact by staying informed about fair housing laws, understanding local market conditions, and recognizing how historical housing patterns continue to shape opportunities today. Education is not a one-time event—it’s an ongoing commitment to serving clients with excellence.

Technology Requires Responsible Leadership

Artificial intelligence, automated marketing platforms, predictive analytics, and digital advertising have become everyday tools in real estate. While these technologies improve efficiency, they should always be used thoughtfully.

Professionals should regularly review advertising audiences, automated recommendations, CRM workflows, and AI-generated content to help ensure their marketing reaches consumers fairly and reflects inclusive business practices. Human judgment remains essential when technology influences housing decisions.

Building Inclusive Business Practices

Fair housing principles should be visible in every part of a real estate business, including:

• Using welcoming, property-focused language in marketing materials.
• Providing equal access to listings, tours, and available opportunities.
• Offering objective market information without steering clients toward or away from neighborhoods.
• Applying consistent service standards to every transaction.
• Continuing professional education to stay current with laws, regulations, and industry best practices.
• Encouraging open communication and addressing concerns professionally and respectfully.

Small, intentional actions create meaningful results over time.

Strengthening Communities Through Professionalism

Homeownership and housing opportunities influence families, neighborhoods, schools, and local economies. When real estate professionals uphold fair housing principles, they help strengthen public confidence in the industry while expanding opportunities for future generations.

Clients remember professionals who make them feel informed, respected, and supported throughout the process. Those experiences build lasting relationships, referrals, and stronger communities.

Looking Ahead

The future of real estate will continue to be shaped by innovation, changing consumer expectations, and evolving markets. Throughout these changes, one principle remains constant: every individual deserves to be treated with fairness, dignity, and respect.

Fair housing is not simply about compliance—it is about leadership. By embracing inclusive practices, investing in ongoing education, and serving every client with consistency and professionalism, real estate professionals can help create a housing market where opportunity is accessible to all.

The most successful agents of 2026 are not defined only by the transactions they close, but by the trust they build, the communities they strengthen, and the equitable opportunities they help create every day

Source: REALTOR® Magazine
“Be an Advocate for Fair Housing”
National Association of REALTORS®

Most brokers spend plenty of time preparing for the risks they can see coming—a slowing market, changing mortgage rates, deals that fall apart, or difficult clients.

But the biggest threats to your business usually don’t arrive with a warning. They show up as a cyberattack, an overlooked policy, a marketing mistake, or a simple conversation that was never documented.

Welcome to risk management in 2026.

Today’s brokerage landscape moves fast. Technology evolves overnight, client expectations keep rising, and regulations continue to shift. The good news? Most major problems are preventable—if you’re looking in the right places.

Five Risks That Deserve Your Attention

🤝 Buyer Representation Isn’t “Set It and Forget It”

Buyer agreements have become standard practice, but paperwork alone isn’t enough. Make sure your agents are clearly explaining agency relationships, documenting conversations, and setting expectations from day one. A few extra minutes upfront can save months of headaches later.

🔐 Cybersecurity Is Everyone’s Job

Hackers aren’t just targeting large corporations anymore. Real estate transactions are packed with sensitive financial information, making every brokerage a potential target.

Add AI-generated scams, fake invoices, and voice cloning to the mix, and it’s clear that verifying financial instructions should be standard operating procedure—not an afterthought.

📸 That Perfect Marketing Photo Could Cost You

That image, video clip, or catchy background music might look great in a listing—but if you don’t have permission to use it, it could become an expensive lesson.

When in doubt, create original content or use properly licensed media. Great marketing shouldn’t come with legal baggage.

🛠️ Referrals Matter More Than You Think

Clients trust your recommendations. Whether it’s an inspector, contractor, lender, or handyman, take the time to recommend professionals who are licensed, insured, and reputable. Better yet, provide several qualified options and let the client choose.

📝 If It Isn’t Documented…

…it might as well not have happened.

Emails, texts, disclosures, meeting notes, and transaction timelines aren’t just paperwork—they’re your safety net. Good documentation can turn a stressful dispute into a straightforward conversation.

Make Risk Management Part of Your Culture

The best brokerages don’t wait for something to go wrong before talking about risk.

They share real-world examples during team meetings. They update policies as technology changes. They encourage agents to ask questions before small issues become big ones.

Risk management isn’t about expecting the worst—it’s about being ready for whatever comes next.

The Bottom Line

No one can predict every challenge the real estate industry will face. But brokerages that stay curious, embrace new technology responsibly, communicate clearly, and keep good records will always have an advantage.

Because in real estate, the biggest risk usually isn’t the one you planned for.

It’s the one you never saw coming.

Source: REALTOR® Magazine
“The Worst Risk: ‘The One You Never Saw Coming’”
National Association of REALTORS®

The real estate industry continues to evolve, and so does the National Association of REALTORS® (NAR) Code of Ethics. As of 2026, recent updates provide greater clarity on how ethical standards are applied while reinforcing the profession’s longstanding commitment to fair housing, professionalism, and equal treatment for every consumer.

For buyers, sellers, and REALTORS® alike, these revisions are designed to strengthen confidence in the real estate process while ensuring ethical expectations remain practical, consistent, and enforceable.

A Commitment to Fair Housing Remains Unchanged

At the heart of the NAR Code of Ethics is Article 10, which continues to prohibit REALTORS® from denying equal professional services or employment opportunities based on protected characteristics, including race, color, religion, sex, disability, familial status, national origin, sexual orientation, and gender identity. These protections remain fully intact under the 2026 Code of Ethics.

The recent updates do not weaken these protections. Instead, they clarify how ethical standards should be interpreted and enforced.

Clearer Standards for Professional Conduct

One of the most significant changes involves Standard of Practice 10-5, which now includes a clearer definition of harassment. The revised language aligns with NAR’s Member Code of Conduct, providing state and local REALTOR® associations with a more consistent framework for reviewing ethics complaints.

Rather than changing the core principles, the revision helps ensure that enforcement is fair, objective, and focused on conduct that interferes with equal access to professional real estate services.

Ethics Apply in Professional Real Estate Activities

Another important clarification addresses when the Code of Ethics applies.

Current policy explains that ethical enforcement is focused on REALTORS® acting in their professional capacity, while conducting business associated with their real estate practice, or while participating in real estate-related activities. This guidance provides a more defined scope for local and state associations when evaluating complaints.

Additional 2026 Professional Standards Updates

Beyond Article 10, NAR implemented several additional Professional Standards changes effective in 2026 to reflect today’s business practices.

Highlights include:

• Article 7 now limits certain compensation disclosure requirements to a REALTOR®’s client or clients.
• Standard of Practice 3-4 has been removed, reflecting changes in industry compensation practices following recent settlement-related reforms.
• Several case interpretations were updated to reflect the revised language and provide additional guidance for ethics enforcement.
• Professional Standards procedures were revised to improve consistency across local and state REALTOR® associations.

What This Means for Consumers

Whether you’re buying your first home or selling your tenth, these updates reinforce several important expectations:

• Professional service should be provided fairly and without discrimination.
• REALTORS® remain accountable to a nationally recognized Code of Ethics.
• Consumers can expect ethical standards to be applied consistently across the profession.
• Greater clarity helps reduce confusion while improving confidence in the complaint and enforcement process.

Why Ethics Matter

Real estate transactions often involve significant financial and personal decisions. Ethical conduct builds trust between REALTORS® and the clients they serve. While laws establish minimum legal requirements, the REALTOR® Code of Ethics sets a higher professional standard for members of the National Association of REALTORS®.

As the industry changes, the Code continues to evolve to address modern business practices while preserving the principles of honesty, integrity, fairness, and equal professional service that have guided REALTORS® for more than a century.

Looking Ahead

The 2026 updates demonstrate that the REALTOR® Code of Ethics is a living document—one that adapts as the real estate industry evolves while maintaining its commitment to professionalism and consumer protection.

For consumers, these revisions offer additional confidence that REALTORS® are held to clear ethical expectations. For REALTORS®, they provide practical guidance that supports consistent decision-making, strengthens public trust, and reinforces the profession’s commitment to serving every client with integrity.

Source: REALTOR® Magazine
“NAR Approves Clarifying Changes to Code of Ethics Standard”
National Association of REALTORS®

A federal appeals court has reinforced an important constitutional principle for rental housing providers by allowing claims for compensation stemming from the federal COVID-19 eviction moratorium to move forward.

The decision centers on Darby v. United States, one of the most closely watched property rights cases arising from the pandemic. By declining to reconsider its earlier ruling, the U.S. Court of Appeals for the Federal Circuit confirmed that landlords may continue seeking compensation under the Fifth Amendment for losses allegedly caused by the Centers for Disease Control and Prevention’s nationwide eviction ban.

A Continuing Constitutional Debate

The CDC implemented its residential eviction moratorium in 2020 as part of the federal response to COVID-19. While intended to reduce housing displacement during the public health emergency, the order prevented many housing providers from removing tenants who failed to pay rent.

For many independent landlords and small rental property owners, the moratorium created significant financial challenges. Although many tenants continued meeting their lease obligations, others accumulated unpaid rent while owners remained responsible for mortgages, taxes, insurance, maintenance, and other operating expenses.

Several property owners, along with the Georgia and Alabama Associations of REALTORS®, challenged the federal government’s actions in court. Supported through legal advocacy by the National Association of REALTORS® (NAR), the plaintiffs argued that the government effectively required private property owners to provide housing without just compensation, violating the Takings Clause of the Fifth Amendment.

Why the Federal Circuit’s Decision Matters

The Federal Circuit’s ruling does not determine whether compensation must ultimately be paid. Instead, it establishes that the plaintiffs may pursue their constitutional claims rather than having the case dismissed at the outset.

The federal government argued that because the U.S. Supreme Court later determined the CDC lacked statutory authority to issue the eviction moratorium, property owners could not bring a Fifth Amendment takings claim based on those actions.

The appeals court rejected that argument, concluding that the government’s position did not automatically prevent landlords from seeking compensation. As a result, the litigation can continue through the judicial process, where the merits of the claims will be evaluated.

For property owners, the decision represents an important procedural victory and preserves a legal pathway for recovering damages if the courts ultimately conclude that a compensable taking occurred.

NAR’s Role in the Litigation

Throughout the litigation, the National Association of REALTORS® supported the plaintiffs by filing an amicus brief advocating for strong constitutional protections for private property owners.

NAR has consistently maintained that government responses to emergencies must respect established property rights while balancing broader public interests. During the pandemic, the organization also supported billions of dollars in emergency rental assistance to help tenants remain housed while ensuring housing providers received payment for rent owed.

According to NAR leadership, direct rental assistance represented a more balanced solution than requiring individual property owners to absorb the financial burden of a nationwide public policy.

Looking Ahead

Although the Federal Circuit declined to rehear the case, the litigation is not necessarily complete. Additional proceedings remain possible, and further appellate review could still occur before a final resolution is reached.

Regardless of the ultimate outcome, the decision reinforces that constitutional property rights remain subject to judicial review, even during national emergencies. The case also continues to shape the legal conversation surrounding government authority, emergency powers, and the Fifth Amendment’s requirement that private property not be taken for public use without just compensation.

As of 2026, Darby v. United States remains one of the leading cases addressing whether landlords may recover compensation for financial losses associated with the federal eviction moratorium, and its eventual resolution could have lasting implications for future emergency housing policies and property rights jurisprudence.

Source: REALTOR® Magazine
“Court: Landlords Have Constitutional Right to Repayment”
National Association of REALTORS®

The National Association of REALTORS® (NAR) continues to build momentum in defending itself against a series of antitrust lawsuits that have challenged longstanding industry practices. Among the most closely watched cases has been the lawsuit brought by Utah-based real estate company Homie, which alleged that NAR and several national brokerage firms engaged in anticompetitive conduct that harmed its business.

While the litigation remains part of the broader legal conversation surrounding residential real estate, the case has reinforced an important principle in antitrust law: allegations alone are not enough. Courts require plaintiffs to demonstrate concrete harm to competition—not simply harm to an individual competitor.

The Homie Lawsuit

Homie filed suit in 2024 against NAR and several national brokerage companies, claiming that certain real estate practices and industry relationships unfairly limited its ability to compete as a flat-fee brokerage.

The lawsuit centered on allegations that Homie listings received reduced exposure because some agents were reluctant to show properties offering lower buyer-agent compensation. Homie argued that these actions amounted to an unlawful boycott and violated federal antitrust laws.

In July 2025, the U.S. District Court for the District of Utah dismissed the claims with prejudice, finding that the complaint did not sufficiently establish an actionable antitrust injury or plausibly demonstrate that NAR or the named brokerages participated in an unlawful conspiracy. Because the dismissal was issued with prejudice, the same claims cannot be refiled in district court. Homie subsequently appealed the decision to the U.S. Court of Appeals for the Tenth Circuit, where the appeal remains part of the ongoing legal process.

Why the Decision Matters

The ruling represents more than a procedural victory for the defendants. It highlights the high evidentiary standards required in antitrust litigation involving the real estate industry.

Federal courts generally distinguish between:

• Harm to an individual business.
• Harm to consumers.
• Harm to competition within an entire marketplace.

To prevail in an antitrust action, plaintiffs must show that challenged conduct reduced competition itself—not simply that one company lost market share or experienced financial setbacks.

The Utah court concluded that Homie’s allegations did not meet that legal threshold.

A Broader Pattern Emerging

The Homie decision is one of several recent court rulings addressing challenges to REALTOR® policies, MLS participation, and brokerage practices.

Across multiple jurisdictions, judges have increasingly required plaintiffs to present detailed factual allegations demonstrating:

• A clearly defined relevant market.
• Actual injury to competition.
• Consumer harm rather than competitor dissatisfaction.
• Evidence of coordinated conduct among defendants.

Where those elements have been absent, courts have frequently dismissed claims before trial. Several 2025 and 2026 decisions involving REALTOR® organizations and MLS-related policies have reflected this trend.

Industry Practices Continue to Evolve

Although NAR has successfully defended several lawsuits, the residential real estate industry continues to evolve following the implementation of practice changes associated with the national commission settlement.

Brokerages across the country have adopted updated procedures that emphasize:

• Written buyer representation agreements.
• Greater transparency regarding broker compensation.
• Clear communication about negotiable fees.
• Consumer education throughout the transaction process.

These operational changes exist independently from the Homie litigation but reflect the industry’s broader movement toward increased transparency and consumer choice.

What Comes Next

As of mid-2026, Homie’s appeal remains part of the federal appellate process. The appellate court will review whether the district court correctly applied antitrust law when dismissing the complaint. No final appellate decision has yet altered the district court’s ruling.

Regardless of the appeal’s outcome, the litigation serves as another reminder that courts continue to carefully examine antitrust claims involving real estate while requiring plaintiffs to provide specific evidence of competitive harm.

The Bottom Line

The Homie litigation illustrates the changing legal landscape facing the real estate industry. While policy debates surrounding competition, MLS access, and brokerage compensation continue, recent court decisions suggest that broad allegations against industry organizations will receive rigorous judicial scrutiny.

For REALTORS®, brokers, and consumers alike, the focus remains on transparent business practices, informed client representation, and compliance with evolving legal standards. As additional appellate decisions emerge, they are expected to further define how antitrust principles apply to modern residential real estate markets.

Source: REALTOR® Magazine
“NAR Prevails in Homie Litigation”
National Association of REALTORS®