The National Association of REALTORS® (NAR) released its May 2025 edition of “Hot Topics in Broker Risk Reduction,” addressing current legal concerns and best practices for brokers navigating an evolving real estate environment. This report is an essential tool for brokers aiming to stay compliant and minimize exposure to liability.
Key Topics Covered
1. Multiple Listing Options for Sellers
NAR’s new MLS policy expands listing flexibility, complementing the Clear Cooperation Policy. Brokers should be familiar with two primary listing types:
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Office Exclusive Listings: Listings are submitted to the MLS but not shared or marketed publicly, honoring seller requests.
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Delayed Marketing Listings: These allow sellers to delay marketing while still filing the listing with the MLS, useful for strategic sales planning.
2. Antitrust Compliance
Brokers must avoid illegal coordination with competitors. Risky behaviors include:
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Discussing commission structures with competitors.
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Agreeing not to work with specific clients or brokerages.
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Allocating markets or customers.
To stay compliant, brokers should implement company-wide antitrust education and maintain clear written policies.
3. Cybercrime and Wire Fraud
Wire fraud, phishing, and impersonation scams (including fraudulent cryptocurrency investment schemes) remain major threats. Brokers are encouraged to:
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Use secure communication platforms.
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Regularly train staff and clients on cybersecurity.
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Report any cyber incidents promptly to authorities.
4. Deed Fraud
A rising scam involves criminals impersonating owners of vacant or investment properties to fraudulently sell them. Brokers should:
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Verify seller identity through multiple documentation checks.
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Investigate red flags like below-market sales or urgent timelines.
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Notify local law enforcement or title insurers about suspicious activity.
5. Artificial Intelligence (AI)
While AI tools like chatbots and automated writing assistants offer convenience, they pose risks:
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Misinformation or misrepresentation.
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Fair housing violations from biased or discriminatory outputs.
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Lack of accountability for AI-generated content.
Brokers should establish internal AI-use guidelines and vet content for legal and ethical compliance.
6. Copyright Infringement
Using images, videos, or music in marketing materials without appropriate licensing can lead to costly legal claims. Brokers should:
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Obtain written permission or use materials from licensed services.
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Review contracts with photographers and marketing firms to confirm ownership rights.
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Maintain documentation proving content usage rights.
7. Fair Housing Compliance
The most common fair housing violations stem from disability-based discrimination. To promote compliance:
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Ensure websites and advertising are accessible and inclusive.
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Avoid any language or images that could imply discriminatory intent.
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Require ongoing training and recommend NAR’s Fairhaven 2.0 simulation.
8. Independent Contractor Status
Misclassifying agents as independent contractors when they function as employees can trigger tax and labor issues. Brokers must:
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Use clear written agreements.
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Limit supervision and mandates that suggest an employment relationship.
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Follow IRS and state-specific criteria for classification.
9. TCPA and Do Not Call Compliance
The Telephone Consumer Protection Act (TCPA) and state-specific “mini-TCPA” laws govern real estate telemarketing. Brokers should:
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Obtain express written consent before texting or calling leads using automated systems.
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Maintain internal do-not-call lists.
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Stay current on state-specific consent and documentation rules.
Visit https://www.nar.realtor/legal/hot-topics-for-brokers for more information.
