Article 4 of the REALTOR® Code of Ethics, dealing with agent-owned/interest disclosure, has been rewritten. Before it was revised, Article 4 had different requirements that triggered a written disclosure depending on whether the REALTOR® was on the buy-side or sell-side. The old version was also ambiguous about whether a written disclosure was required in a leasing scenario. Now, under the amended Code of Ethics that went into effect January 1, 2025, Article 4 was re-written to codify that REALTORS® representing buyers, sellers, lessors or tenants have the same ethical duty to disclose potential conflicts of interest. Standard of Practice 4-1 was added to provide a list of scenarios, whether in sale or in lease transactions, where written disclosure would be required; and Standard of Practice 4-2, was added to clarify that the identity or nature of the interest is not required to be disclosed.
REALTORS® should review the new Article 4 of the Code of Ethics and ensure compliance when a transaction meets the stated criteria to trigger a written disclosure. The Chicago REALTORS® Forms Library includes an Agent-Owned/Interest Disclosure to assist members in complying with this ethical requirement. A copy of the 2025 REALTOR® Code of Ethics is also available for download.
Article 4 amended Language
Article 4
REALTORS® who have a present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, must disclose in writing the existence of such interest to all parties to the transaction prior to a party signing any agreement. (Amended January 2025)
Standard of Practice 4-1
The present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, includes transactions in which REALTORS®:
- represent themselves
- represent a member of their immediate family
- represent their firm or any broker or agent thereof
- represent an entity in which the REALTOR® or member of their immediate family has a legal interest.
( Adopted February 1986, Amended January 2025)
Standard of Practice 4-2
REALTORS® are not required to disclose the identity of the client or customer, nor the specific nature of the interest referred to in Article 4, but must disclose that an interest exists. (Adopted January 2025)
Please Note: As defined in the Code of Ethics and Arbitration Manual, “Immediate Family” as used in the Code of Ethics includes but is not limited to, the REALTOR® and the REALTOR®’s spouse and their siblings, parents, grandparents, children (by birth or adoption), grandchildren and other descendants. (Adopted November 1989)