Aug 19

When REALTORS® Have a Personal Stake in a Transaction

Transparency is one of the foundations of a trustworthy real estate transaction. When a REALTOR® has a personal or financial connection to a property, buyers, sellers, landlords, and other parties deserve to know about that interest before they commit to an agreement.

Under Article 4 of the REALTOR® Code of Ethics, REALTORS® must disclose in writing when they have an ownership interest in property being offered for sale or lease, or when they have a contemplated interest in purchasing or leasing property. The disclosure must be made before a party signs an agreement.

What Counts as an Interest?

The requirement can apply in situations that extend beyond a REALTOR® personally buying or selling a property. It may include transactions involving:

  • The REALTOR® personally
  • An immediate family member
  • The REALTOR®’s firm, broker, or agent
  • An entity in which the REALTOR® or an immediate family member has a legal ownership interest

For example, if a REALTOR® is representing a buyer while also having an ownership stake in the property being purchased, that relationship should not remain hidden. The same principle applies when a REALTOR® is selling a property in which they have an ownership interest.

Disclosure Should Be Clear and Timely

The goal is not to overwhelm consumers with unnecessary information. The ethical obligation is to make the existence of the interest known clearly and in writing.

Importantly, the Code does not generally require a REALTOR® to disclose the identity of a client or customer or explain the precise nature of the interest. What matters is that the affected parties understand that an interest exists.

Written disclosure also creates a clear record that the information was provided before the transaction moved forward. That can help reduce misunderstandings and reinforce confidence among everyone involved.

Why This Matters in 2026

Real estate transactions increasingly involve investors, LLCs, family partnerships, investment groups, and other ownership structures. That makes transparency especially important when a real estate professional may have a personal stake in the outcome.

The updated Article 4 language and related Standards of Practice emphasize disclosure of both current ownership interests and contemplated interests in property for sale or lease.

The takeaway is straightforward: If you have a personal or ownership interest in a real estate transaction, disclose it before the parties sign an agreement.

Doing so is more than an ethical requirement. It promotes informed decision-making, protects the integrity of the transaction, and helps maintain the trust that clients and consumers place in real estate professionals.

Source: REALTOR® Magazine
“Disclose Your Ownership Interest”
National Association of REALTORS®

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