1. A. A licensee owes a fiduciary duty to the client and shall protect and promote the client’s interests. The licensee shall also deal fairly with all other parties to a transaction.

2. B. A licensee participating in a real estate transaction shall disclose in writing to all other parties any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction, including:

   1. 1. Any information that the seller or lessor is or may be unable to perform;
   2. 2. Any information that the buyer or lessee is, or may be, unable to perform;
   3. 3. Any known adverse material fact concerning the property or material defect existing in the property being transferred; and
   4. 4. The existence of a lien or encumbrance on the property being transferred.
3. C. A licensee shall expeditiously perform all acts required by the holding of a license. A licensee shall not delay performance, either intentionally or through neglect. If a licensee is unable to perform any act as required by rule or statute, they must expeditiously notify their designated broker of their inability to perform.
4. D. A licensee shall not allow a controversy with another licensee to jeopardize, delay, or interfere with the initiation, processing, or finalizing of a transaction on behalf of a client. This prohibition does not obligate a licensee to agree to alter the terms of any employment or compensation agreement or to relinquish the right to maintain an action to resolve a controversy.

5. E. A licensee shall not act directly or indirectly in a transaction without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict in the transaction, including that the:

   1. 1. Licensee has a license and is acting as a principal;
   2. 2. Purchaser or seller is a member of licensee’s or designated broker’s immediate family;
   3. 3. Purchaser or seller has ownership or is the employee of the licensee’s employing broker; or
   4. 4. Licensee, or a member of the licensee’s immediate family, has a financial interest in the transaction other than the licensee’s receipt of compensation for the real estate services.
6. F. A licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.
7. G. A licensee shall not accept any compensation, including rebate or other consideration, directly or indirectly, for any goods or services provided to a person if the goods or services are related to or result from a real estate transaction, without that person’s prior written acknowledgement of the compensation. This prohibition does not apply to compensation paid to a broker by a broker who represents a party in the transaction.
8. H. The services that a licensee provides to a client shall conform to the standards of practice and competence recognized in the professional community for the specific real estate discipline in which the licensee engages. A licensee shall not undertake to provide professional services concerning a type of property or service that is outside the licensee’s field of competence without engaging the assistance of a person who is competent to provide those services, unless the licensee’s lack of expertise is first disclosed to the client in writing and the client subsequently employs the licensee.
9. I. A licensee shall exercise reasonable care in ensuring that the licensee obtains information material to a client’s interests and relevant to the contemplated transaction and accurately communicates the information to the client. A licensee shall take reasonable steps to assist a client in confirming the accuracy of information relevant to the transaction.

10. J. A licensee shall not:

    1. 1. Permit or facilitate access to or occupancy in a person’s real property without prior written authorization from the owner of the real property; or
    2. 2. Deliver possession prior to closing unless expressly instructed to do so by the owner of the property or property interest being transferred.
11. K. A licensee shall recommend to a client that the client seek appropriate counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of a property.

Historical Note

Adopted effective May 1, 1980 (Supp. 80-3). Former Section R4-28-27 renumbered without change as Section R4-28-1101 (Supp. 87-1). Section R4-28-1101 amended by final rulemaking at 5 A.A.R. 650, effective February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 8 A.A.R. 3640, effective August 6, 2002 (Supp. 02-3). Amended by final rulemaking at 11 A.A.R. 506, effective March 5, 2005 (Supp. 05-1). Amended by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4).