Real Estate Ethics & Compliance Review

Pull all active and recently sold listings from the MLS export. Flag descriptions using protected-class triggers — "family-friendly," "perfect for couples," "walking distance to church," "exclusive neighborhood." Cross-reference against the federal Fair Housing Act protected classes plus any state additions (sexual orientation, gender identity, source of income).

Confirm the neighborhood-discussion script is current: school district information provided on request, no unsolicited "good area / bad area" framing, demographic questions redirected to publicly available data sources. Document any script changes since last review.

Pull each agent's CE transcript from the state commission portal. Confirm fair housing and ethics hours are current for the renewal cycle. NAR's Code of Ethics training is required triennially for REALTORS.

Sample 10% of listings closed this quarter. Look for blank fields on known-issue items — foundation, roof, prior flooding, pest. A blank field where the seller plausibly had knowledge is a post-closing lawsuit waiting to happen and an Article 2 violation under the NAR Code.

Filter MLS export by year built < 1978. For each listing, confirm the EPA-required disclosure form, the EPA pamphlet acknowledgment, and the 10-day inspection-opportunity language are in the transaction file. Missing LBP disclosure exposes the brokerage to EPA fines and gives the buyer rescission rights.

Most state license laws require the agency disclosure form before the first substantive contact about buying or selling preferences. Pull buyer-rep agreements and listing intake files; confirm the disclosure is signed before any property-specific discussion shows in the CRM activity log.

For each pre-1978 listing flagged in the prior step, contact the listing agent and seller to execute the missing disclosure. Document remediation in the transaction file. Notify legal counsel if the listing has already closed — buyer rescission window may still be open.

Sample five recent listing CMAs (Cloud CMA or RPR exports). Confirm comp set is fewer than 90 days old, geographically consistent, and adjusted for square footage and condition. Stale or cherry-picked comps that justify an inflated list price are an Article 1 fiduciary problem.

Cross-check stated square footage against the source noted in MLS (tax records, appraisal, builder plans). Verify school district claims against the state's official assignment tool. Inflated bedroom counts and unverified school zoning are common Article 12 violations.

Identify any in-house transactions where the same agent or brokerage represented both sides. Verify written informed consent from both parties is in the file — oral consent is not sufficient in any state that permits dual agency, and dual agency itself is illegal in FL, CO, KS, OK, VT, and AK.

Pull transactions where a licensee, immediate family member, or controlled LLC was buyer or seller. Article 4 requires written disclosure of the licensee's status as principal to the other party before signatures.

For each agent-as-principal transaction identified, pull the written disclosure from the file and confirm it predates the offer. Disclosure made at closing is too late and constitutes an Article 4 violation.

Pull all incoming and outgoing referral fees from Brokermint or the back-office ledger. Confirm each fee is licensee-to-licensee or falls within a documented MSA. Fees from lenders, title, inspectors, or home warranty companies for client referrals are RESPA Section 8 violations and trigger CFPB exposure.

Export the prior 90 days of lockbox open events and ShowingTime appointments. Cross-reference unscheduled lockbox opens against the appointment calendar — unauthorized entries are Article 3 violations and can void the listing agreement.

Vacant listings still require written seller authorization for contractor, photographer, or stager entry. Confirm each non-showing access event has an authorization email or signed addendum in the transaction file.

Combination lockboxes on long-DOM listings are a security risk; rotate codes quarterly and after every contractor visit. Confirm with the listing coordinator that all combo boxes have current codes documented in the listing file.

Match the trust-account bank statement against the Brokermint or back-office EMD ledger by transaction. Confirm each deposit hit trust within the state-required window (typically 3 business days of receipt). Any commingling, even brief, is a license-law violation in every state.

Identify the deal, the responsible licensee, and the cause — late deposit, mis-posted disbursement, or commingling. Document corrective action and timeline. Self-report to the state commission if the discrepancy meets the reporting threshold; voluntary disclosure mitigates discipline.

Sample 10% of closed files in Dotloop or SkySlope. Required: signed listing or buyer agreement, agency disclosure, seller's property disclosure, LBP if applicable, ratified contract with all addenda, ALTA Settlement Statement, and commission disbursement authorization. Most state commissions require retention of 3-7 years.

Spot-check DocuSign or Dotloop completion certificates to confirm every signing party received a fully-executed copy. NAR Article 9 requires copies to all signatories, and missing delivery is a frequent local board citation.

The broker-in-charge reviews findings, documents corrective actions, and signs off. File the completed review with the brokerage compliance binder; a state commission audit will request the prior four quarters.