Cooperating Brokers and Code of Ethics Article 1

Welcome! In the day-to-day of real estate, you’ve likely heard terms like cooperating broker and references to the NAR Code of Ethics. But what do these really mean for you and your business?

Here, we’ll explain what a cooperating broker is, why the National Association of REALTORS® (NAR) Code of Ethics (especially Article 1) is so important, how often the Code is updated, and how you can stay current through continuing education (think code of ethics class real estate courses and more).

We’ll also highlight education options – for example, Empire Learning as an online CE provider – to help you meet your ethics requirements and keep thriving in your career. Let’s dive in!

What Is a Cooperating Broker?

In simple terms, a cooperating broker is any broker or agent who isn’t the listing broker but brings in the buyer (or tenant) for a real estate deal. In other words, if you find a buyer for another agent’s listing, you’re acting as the cooperating broker on that transaction ​century21.com.

This is often just the buyer’s agent in a transaction – the one “cooperating” with the listing agent to close the sale. Cooperating brokers play a crucial role: they expand the pool of potential buyers and help properties sell more quickly by working together with the listing side.

Because the cooperating broker is helping make the sale happen, they typically share in the commission with the listing broker ​century21.com.

For example, if you, as a buyer’s agent, bring a qualified buyer to purchase another agent’s listing, you are usually entitled to an agreed-upon portion of the total commission when the deal closes.

The exact split can vary (often it’s a 50/50 split, but not always – it could be adjusted based on circumstances or prior agreements). The key is that there’s cooperation between brokers to get the deal done in the client’s best interest.

This cooperation isn’t just a handshake deal; it’s often facilitated by Multiple Listing Service (MLS) practices and guided by professional standards. In fact, the NAR Code of Ethics explicitly encourages Realtors® to cooperate with other brokers whenever it’s in the client’s best interest (that’s Article 3 of the Code)​ nar.realtor.

So, being a cooperating broker isn’t just good practice – it’s an ethical duty when it serves your client well. By working collegially with listing agents and other brokers, you help maintain a healthier market and a reputation of trust within the industry.

REALTOR® Code of Ethics

Real estate isn’t called a profession for nothing – professionals follow standards. The NAR Code of Ethics is the gold standard for ethical behavior in real estate. First adopted in 1913, it was one of the very first codes of ethics for any business group in the U.S.

The Code was established to foster honesty, integrity, and cooperation among agents and brokers, all to protect clients and the public. Why does this matter? Because real estate transactions involve huge decisions and large sums of money – clients need to know they can trust their agents to do the right thing.

One of the fundamental purposes of the Code is to ensure that consumers are served by requiring REALTORS® to cooperate with each other in furthering clients’ best interests. In practice, this means that even if you and another agent are from different brokerages, the Code expects you to work together ethically to help your respective clients reach a deal.

This cooperation (as we saw with the cooperating broker role) ultimately benefits sellers by bringing them ready buyers, and benefits buyers by giving them access to all MLS-listed properties, not just those listed by their own agent’s brokerage.

The NAR Code of Ethics is divided into three sections: Duties to Clients and Customers, Duties to the Public, and Duties to Realtors®.

It contains 17 Articles covering various ethical obligations, from protecting and promoting a client’s interests, to truth in advertising, to respecting exclusive relationships that other agents have with their clients. Each Article has supporting Standards of Practice that give more detailed guidance or examples.

Together, these rules set a clear expectation: as a real estate agent (and especially as a REALTOR®, i.e., a NAR member), you must conduct business with the highest integrity – putting clients first, being honest with everyone, and striving to cooperate rather than compete unfairly.

Following the Code isn’t just about avoiding trouble; it’s about building a reputation as a trustworthy, professional agent. Clients often choose agents who are REALTORS® because they know there’s an enforced ethical code behind that REALTOR® title.

In many ways, the Code of Ethics is a big reason the term “REALTOR®” means “someone you can trust” to so many consumers. It’s a promise that you’ll do right by the client and treat all parties fairly. Let’s zero in on the most fundamental piece of that promise: Article 1.

Code of Ethics Article 1: Putting Clients First (While Staying Fair)

Article 1 of the NAR Code of Ethics is the bedrock of everything we do. It sets the tone by stating that when representing a buyer, seller, landlord, tenant, or other client, a Realtor® pledges to protect and promote the interests of their client above all else.

Simply put, your client’s interests come first. This is often referred to as your fiduciary duty – the obligation to act in the best interest of the person you represent, as loyally and diligently as possible.

However, Article 1 doesn’t stop there. It also makes an essential point: you must treat all parties honestly. So, while you’re fiercely loyal to your client’s needs, you cannot lie or mislead the other side either.

In practice, this means you should disclose material facts, present offers truthfully, and never engage in deceit – even with the folks across the table. Article 1 strikes a balance between loyalty to your client and fundamental fairness in the transaction.

To give you a sense of how Article 1 plays out, here are a few key expectations it sets for agents.

Honest Dealings

If you know something important about a property or a situation, you can’t hide or misrepresent it to trick the other side. Honesty is mandatory with everyone, not just with your own client. For example, if you’re the listing agent and you receive multiple offers, you must be truthful in how you handle and communicate about those offers to buyers’ agents (the cooperating brokers).

Loyalty and Confidentiality

You owe absolute loyalty to your client’s interests. That means advocating for the best price and terms for them, keeping their confidential information truly confidential, and generally going to bat for them at every step. Article 1 is essentially telling us: “Put your client first – always – but don’t trample on anyone else’s rights in the process.”

Disclosure and Informed Consent

If there’s any situation where you might represent both sides (dual agency) or have any personal interest in a deal, you must fully disclose that and get informed consent. Article 1, along with some later Articles, guides agents to avoid conflicts of interest or at least handle them very transparently. The client should never be in the dark about anything that could affect their decision.

Presenting Offers Promptly

Under Article 1’s Standards of Practice, there are specific rules like Standard of Practice 1-6 and 1-7, which say you must submit all offers and counter-offers objectively and as quickly as possible. And if you’re a listing agent, you have to keep presenting offers to your seller client until a deal is closed (unless the seller instructs you otherwise in writing).

In fact, if a cooperating broker (buyer’s agent) submits an offer, the listing broker must provide prompt written affirmation to that cooperating broker that the offer was presented to the seller. This kind of rule shows Article 1 in action – it’s about being diligent for your client (making sure they see every offer) and being fair to fellow agents (confirming their buyer’s offer got a fair shot).

Article 1 is often considered the “Golden Rule” article. It basically embodies the Golden Rule of “do unto others as you would have them do unto you,” within the context of real estate transactions.

As a friendly tip: if you’re ever unsure whether something is ethical, ask yourself if you’d consider it fair and honest if you were in the other party’s shoes. If not, Article 1 probably says don’t do it!

How Often Is the NAR Code of Ethics Updated?

You might be wondering, how often is the NAR Code of Ethics updated, and do I need to keep track of changes? The Code of Ethics isn’t a static document – it gets updated as needed to keep up with new issues and challenges in the industry.

There’s not an exact calendar like “every X years,” but in practice NAR reviews and amends the Code quite regularly (often annually) through its committees and Board of Directors.

For instance, NAR’s Board approved significant changes in November 2020 to address emerging issues like discriminatory speech. This led to a new Standard of Practice 10-5 (under Article 10) prohibiting hate speech, showing how the Code adapts to social and industry changes. Similarly, a 2024 update added or clarified several points – NAR even provides a summary of key changes for each year.

In fact, NAR releases a new edition of the Code of Ethics annually (the current one as of this writing is the 2025 Code of Ethics & Standards of Practice), which incorporates all the latest tweaks and additions.

The frequency of updates can be summarized like this: minor tweaks or new interpretations happen almost every year, usually approved during NAR’s annual conferences or mid-year meetings, when the Professional Standards Committee recommends changes.

Major overhauls are rarer, but the Code has evolved considerably over time – from its original 1913 version to now, reflecting changes in law, technology, and societal values. For example, fair housing expansions, duties regarding the internet and advertising, and clarifications on cooperation between brokers have been added over the years.

As a practicing agent, you don’t necessarily need to memorize each change, but you should be generally aware that the Code is a living document. It’s wise to stay informed through NAR’s communications or your local REALTOR® association’s updates. NAR often publishes articles or FAQs about the latest changes so Realtors® know what’s new.

One convenient way to make sure you’re up-to-date on the Code’s contents is by fulfilling your regular ethics training (more on that next) – the training courses usually highlight any recent changes to the Code of Ethics so you’re not left guessing.

Ethics Classes and Continuing Education for Agents

Ethical knowledge isn’t a one-and-done thing – it’s an ongoing education. To make sure all members stay current, NAR requires Realtors® to complete a Code of Ethics training every three years.

This is often referred to as the “ethics cycle” requirement. The training can be done locally through your association, or through approved courses (in-person or online).

It’s not just a NAR rule either – many state real estate commissions also either require or highly encourage ongoing ethics training as part of your license renewal continuing education (CE) hours.

There are plenty of options to fulfill this requirement and deepen your understanding of the Code. NAR itself offers an official online ethics course for members (free of charge), which covers the Code and real-world case studies. Local Realtor® boards frequently host ethics classes too – sometimes as a lunch-and-learn or part of annual education fairs.

Many agents, however, opt for online continuing education courses that kill two birds with one stone: meeting the NAR requirement and earning state CE credit hours.

For instance, you could take a real estate code of ethics course approved in your state that not only refreshes your knowledge on the Code but also counts toward your license renewal. These courses are often labeled as “CE Code of Ethics” or “Ethics and Professional Standards” in CE catalogs.

Whether you call it a real estate ethics class, a code of ethics class real estate agents need to take, or an ethics class for real estate agents, the goal is the same: to keep you informed on ethical best practices and any updates to the rules.

Education Options & Empire Learning

So, what are your go-to options for an ethics class? Here’s a quick rundown.

Local Association Classes

Your local Realtor® association likely offers a code of ethics class (real estate focused) once or twice a year. These can be great for interaction – you hear questions from fellow agents and scenarios that might resemble things you’ve seen in the field.

Brokerage Training

Some brokerage companies include an ethics refresher in their training programs or meetings. While these might not count for CE credit, they help reinforce the culture of ethics in your firm.

Online Real Estate Schools and CE Providers

Online platforms are extremely popular for busy agents. For example, Empire Learning is an online continuing education provider that offers a dedicated Real Estate Code of Ethics course (a 3-hour interactive online class) to satisfy both NAR’s requirement and state CE credits.

Empire Learning’s course covers the entire NAR Code of Ethics, including case studies, recent updates to the Code, and even the history of the Code and how the ethics complaint process works.

Being online, you can take it at your own pace, anytime 24/7, which is a huge plus if you’re fitting this into a busy schedule. (As a side note, Empire Learning is just one example – other reputable online CE providers like CE Shop, Kaplan, etc., have similar ethics classes. The key is that they’re approved for credit and updated to the latest Code standards.)

Brokerage or Franchise Courses

If you’re with a big franchise like RE/MAX, Keller Williams, etc., they sometimes have their own preferred online portals or partnerships with CE course providers for discounted classes, including ethics. It’s worth checking if your company has something in place.

No matter which option you choose, make sure the class you take is approved to satisfy the NAR ethics training requirement and/or your state’s CE requirement (if you want the dual benefit).

Most providers will clearly state if their ethics class for real estate agents counts for NAR’s 3-year cycle and state CE. For example, Empire Learning’s ethics course is approved by state real estate commissions (like TREC in Texas) for elective CE credit, and completing it can be used to satisfy the NAR mandate as well (you usually just need to send your completion certificate to your local board so they log it).

Why Continuing Ethics Education Matters

Staying current with the Code of Ethics isn’t just about avoiding a reprimand; it’s about professional growth. Each time you take an ethics class real estate professionals rely on, you’re likely to learn something new or gain a fresh perspective on handling situations.

The real estate landscape changes – think about new technology (e.g., social media advertising, Zillow reviews) or new societal concerns (e.g., heightened awareness of discrimination or privacy issues). The ethical guidelines for agents evolve accordingly, and your classes will cover these.

For example, a few years ago you might not have thought about whether Facebook posts or Tweets could violate the Code, but now there are specific guidelines (Article 10’s new provisions on avoiding discriminatory speech apply to social media too!).

Or you might learn about common pitfalls like misleading MLS listings, or the dos and don’ts of handling multiple offers ethically. Regular ethics training keeps you sharp and lets you serve your clients better. It’s part of being a true professional.

Plus, completing your ethics training is often required to maintain your REALTOR® membership. NAR enforces the 3-year cycle strictly – for instance, members who don’t complete it by the deadline can be suspended until they do.

And no one wants to be that agent scrambling last minute or facing suspension just for forgetting an ethics class. By planning to take a real estate ethics class well before the deadline, you stay compliant and stress-free.

Final Thoughts

Being a real estate agent in the U.S. isn’t just about selling houses – it’s about selling yourself as a trustworthy, ethical professional. Understanding what it means to be a cooperating broker and embracing the principles of the NAR Code of Ethics (Article 1 and all the others) will elevate your practice.

These aren’t just rules to follow grudgingly; they’re guidelines that, when followed with sincerity, lead to happier clients, smoother transactions, and a better reputation in the industry.

Remember, Article 1’s call to “protect and promote your client’s interests, while treating all parties honestly” is more than just a line in a rulebook – it’s a principle you can build your business on. Every time you cooperate with a fellow broker to help both your clients win, every time you level with a customer about a tough truth, every time you put your client’s needs ahead of your convenience, you’re living out Article 1. And clients do notice and appreciate it.

Finally, don’t let the Code of Ethics become “background noise” in your career. Stay engaged with it. Check out NAR’s updates when you hear about changes, discuss interesting ethical scenarios in your office meetings, and definitely take your ethics continuing education seriously. Whether it’s through an online platform like Empire Learning’s CE code of ethics course or a workshop at your local board, these classes keep you in the know. They’re an investment in yourself.

By staying current on ethics, you’ll not only avoid pitfalls but also gain confidence. You’ll know exactly where the lines are, so you can push the limits in marketing or negotiation for your client without crossing into unethical territory. In short, you’ll be the kind of agent other agents love to do deals with – and the kind of agent clients come back to again and again.

Here’s to your success as a principled, informed, and cooperative real estate professional! By understanding cooperating brokers, committing to the Code (shout out to Article 1!), and staying educated through your ethics class real estate updates, you’re building a business that’s both prosperous and built on a rock-solid ethical foundation. Happy selling (and learning)!

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