The concept of “clear cooperation” in real estate is often misunderstood, particularly when it comes to commissions, or as we like to call it, the professional fee.

Let’s start by clarifying one thing from the outset: clear cooperation doesn’t necessarily mean sharing the details of your professional fee, nor does it mean you must submit your buyer agency agreement with your buyer’s offer.

The forefathers of the National Association of REALTORS® (NAR) spent a lot of time in NAR’s early days trying to craft a Code of Ethics that would stand the test of time and act as a guide – a beacon in times of struggle and confusion – to give real estate agents answers and direction when it is needed most. We turn to their guidance now to determine how they intended the Clear Cooperation rules to be used.

According to the National Association of REALTORS® (NAR) Code of Ethics, clear cooperation is about ensuring that all parties involved in a transaction work together ethically and transparently, but it doesn’t mandate commission sharing between agents. Let’s look more closely at the Code of Ethics and what it means for the clear cooperation rule.

Related reading: NAR – Interpretations of the Code of Ethics

Article 3: The Foundation of Cooperation

NAR’s Code of Ethics, Article 3, is pivotal in promoting cooperation between REALTORS® to benefit the consumer. This article emphasizes that while REALTORS® are expected to cooperate with other brokers, the obligation to cooperate does not automatically include sharing the details of their Buyer Agency Agreement or their fees. The key principle here is collaboration in the transaction process, which fosters a professional and ethical environment for the benefit of clients.

As Article 3 outlines, REALTORS® only have the obligation to cooperate with other professionals to ensure the smooth execution of transactions. Professional fees for the buyer’s agent are a separate negotiation to be conducted during the negotiation of price and terms, only once the buyer has made an offer.

Article 9: Clarity and Transparency Are Not Terms for Policing Agents

Article 9 mandates that REALTORS® ensure that all agreements related to the real estate transaction are in clear, understandable terms. This applies to everything from offers to professional fee agreements, and clear communication between agents ensures that both parties know where they stand, reducing misunderstandings and fostering a spirit of cooperation.

It’s becoming a common misunderstanding, especially in light of recent changes in the industry, is that clear cooperation means agents MUST share what their fees are, but the truth is, it’s not the listing agent’s job to police the professional fees of the buyer’s agent.

Related reading: Why Listing Agents Cannot Require the Buyer Agency Agreement Be Included in the Buyer’s Offer

Article 16: The Power Shift, New Rules, and Misuse of Authority

The introduction of these new rules has shifted the power dynamics, particularly benefiting listing agents. Many are leveraging these changes, making unreasonable demands that overstep ethical boundaries. One example that has surfaced is listing agents demanding copies of the Buyer Agency Agreement between the buyer and their agent. They claim they need the document to verify what the buyer’s agent’s commission is, and this is not only unnecessary, but unethical according to NAR guidelines.

Article 16 of the NAR Code of Ethics explicitly states that REALTORS® shall not engage in activities that interfere with the agency relationship other REALTORS® have with their clients. Demanding the Buyer Agency Agreement breaches the fiduciary duties between the buyer and their agent, effectively policing another agent’s actions—something that Article 16 is designed to prevent.

Instead of engaging in this type of overreach, listing agents should recognize the professional boundaries outlined in the Code of Ethics. If an agent or their broker believes unethical behavior has taken place, that is a matter for the buyer’s agent, their broker, and potentially their client—not for the listing agent to police.

Article 1: The Spirit of True Cooperation

According to Article 1 of the NAR Code of Ethics, REALTORS® pledge to protect and promote the interests of their client, while treating all parties honestly. Listing agents need to keep this in mind when they interact with buyer’s agents. Rather than creating conflict by imposing unnecessary demands, the listing agent should understand the burdens that buyer’s agents carry. Especially in today’s competitive market, where buyer’s agents often find themselves fighting for their professional fees, listing agents should support their efforts rather than complicate the negotiation.

What many agents fail to realize is that they could easily find themselves on the other side of the table in the future. Today’s listing agent may be tomorrow’s buyer’s agent, and the demands they make now could backfire later. In this context, cooperation should be about creating a level playing field where all parties work toward the best outcome for the client, not about using newfound power to make unreasonable demands.

Related reading: Why “Secret Codes” to Communicate Seller Incentive Fees Should Be Avoided

Supporting Fellow Agents: A Collaborative Approach

No one works in isolation in the real estate business. The relationships you foster today can have a significant impact on future transactions. Imagine a scenario where the listing agent who made unreasonable demands during a previous deal finds themselves working with the same buyer’s agent on another transaction down the road. The bad blood generated could hinder smooth negotiations, impacting their client’s experience.

Cooperation, as outlined in the NAR Code of Ethics, should be rooted in professionalism, respect, and mutual benefit. The Code of Ethics reminds REALTORS® that cooperation is essential to facilitating the best outcome for all parties involved, but it should be done ethically and without overstepping into another agent’s fiduciary duties.

Upholding Ethical Standards for Better Transactions

By adhering to the guidelines set forth in the NAR Code of Ethics, agents can avoid unnecessary conflicts and protect the integrity of the transaction process. Clear cooperation, when properly understood, is not about gaining leverage over other agents; it’s about ensuring that both parties act in the best interests of their clients.

Clear cooperation should foster collaboration, not confrontation. By respecting the ethical boundaries outlined in the NAR Code of Ethics and working in the best interests of clients, agents can ensure smoother transactions, fairer outcomes, and better relationships in a competitive market. Mutual cooperation is not just a professional responsibility — it’s a strategic advantage for all parties involved.

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