Transparency is one of the foundations of a trustworthy real estate transaction. When a REALTOR\u00ae 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.<\/p>\n\n\n\n
Under Article 4 of the REALTOR\u00ae Code of Ethics<\/strong>, REALTORS\u00ae 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<\/strong>.<\/p>\n\n\n\n The requirement can apply in situations that extend beyond a REALTOR\u00ae personally buying or selling a property. It may include transactions involving:<\/p>\n\n\n\n For example, if a REALTOR\u00ae 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\u00ae is selling a property in which they have an ownership interest.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Importantly, the Code does not generally require a REALTOR\u00ae 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\nWhat Counts as an Interest?<\/h3>\n\n\n\n
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Disclosure Should Be Clear and Timely<\/h3>\n\n\n\n
Why This Matters in 2026<\/h3>\n\n\n\n