Navigating the Next Wave: Highlights from the 2026 C.A.R. Winter Meetings

Overview of the 2026 C.A.R. Winter Business Meetings

The 2026 C.A.R. Winter Business Meetings in Monterey brought together brokers, association executives, legal professionals, and industry leaders to discuss ongoing challenges in the real estate landscape, new regulatory requirements, and upcoming changes to professional standards practices. Over several days, attendees engaged in wide-ranging discussions spanning broker operations, professional standards, MLS policy, legal updates, risk management, and future shifts in the Code of Ethics.

How Brokerages Are Adapting to a Changing Real Estate Environment

The Broker Idea Exchange opened with a candid look at how different-sized brokerages are adapting to a rapidly shifting environment. Solo brokers emphasized referral-driven business models and the importance of personal connection, while small boutique offices leaned heavily on collaborative learning and daily communication. Mid-sized firms highlighted incentives, structured goal setting, and the use of artificial intelligence for training and risk mitigation. The largest firms—those with more than 500 agents—reported an intensified focus on risk management, digital education libraries, and continuous outreach as the market grows increasingly complex. C.A.R. also spotlighted its expanding “Broker Engagement & Outreach” program, underscoring its commitment to better supporting brokers statewide.

Professional Standards Updates in the Post-Settlement Landscape

In the Professional Standards Committee, members received significant updates linked to the post-settlement environment. NAR clarified several Standards of Practice, including the deletion of SOP 3-4 and updates to SOP 17-4. California remains ahead of national timelines in implementing settlement-related changes. Updated manual provisions addressed Ethics Advocate eligibility, parallel proceedings, SOP 10-5 procedures, and several other areas requiring greater clarity to reduce association risk. Case studies reviewed by the committee reinforced a central theme: REALTORS® must avoid unauthorized actions that may appear “helpful” but violate fiduciary or ethical duties.  (See Legal Affairs Forum section for more information.)

MLS Policy Changes and New Rules for Listing Photos

The MLS Policy Committee addressed heightened scrutiny around digital image accuracy. AB 723 introduced stricter requirements for disclosure of digitally altered photos, distinguishing acceptable editing from alterations that may misrepresent a property. MLSs reiterated the legal necessity of retaining historical photos under Civil Code 1088, despite increasing consumer requests to remove images after closing. CRMLS announced that IDX feeds will begin displaying only the primary photo for closed listings, while full photo sets will remain stored internally in compliance with State law. NAR also continues to restructure MLS policy, eliminating or making optional several long-standing national standards, particularly around access, lockboxes, and citation caps.

Key Legal Updates Affecting California REALTORS® in 2026

Legal discussions dominated the Legal Affairs Forum and Member Legal Services, as attendees examined major court cases—including Sitzer/Burnett—and new legal obligations taking effect in 2026. Buyer representation agreements remain a key area of focus; with new 90-day contract term limits and signature requirements.  The pressure on REALTORS® to secure written agreements before showings has increased substantially. Other updates covered FinCEN’s new reporting mandate for all-cash entity purchases beginning March 1, 2026, new rental housing requirements, disclosure obligations surrounding third-hand smoke, and form updates including BRBC, RFA, RLA, RPA, and the introduction of the new RAD form.

Growing Fraud Risks and Compliance Enforcement Trends

The REALTOR® Risk Management and Consumer Protection Forum underscored the industry’s mounting exposure to fraud and compliance failures. Associations continue to see land scams, unlicensed transaction coordinators performing licensed activities, AI-generated listing descriptions containing inaccuracies, and escalating issues involving solar companies in bankruptcy. Fire insurance availability, rent control pressures, and HOA compliance failures also remain prominent statewide concerns. DRE reinforced common violations—unlicensed activity, misrepresentation, improper advertising, and trust fund handling—reminding attendees that enforcement in these areas remains a priority.

Professional Standards Violations and Disciplinary Trends

Professional Standards trends were reviewed in greater depth during the Legal Affairs session. Case filings have gradually decreased statewide, though the number of members found in violation remains relatively stable. Articles 1 and 12 continue to be the most frequently violated. A sharp rise in Article 15 cases in 2025 was attributed to false or disparaging statements made through digital platforms. Disciplinary outcomes continue to range from warnings and reprimands to suspension, expulsion, and cease-and-desist orders.

Major Changes to the REALTOR® Code of Ethics for 2026

The most extensive updates centered on the 2026 changes to the Code of Ethics, including expanded mandatory advisories to clients on compensation, cooperation, dual agency, and payment structures. Several Standards of Practice were updated to clarify property access rules, outline when and how compensation must be disclosed or renegotiated, and refine definitions related to harassment under SOP 10-5. Eight published case interpretations illustrated how hearing panels are applying the revised Articles in real-world scenarios, emphasizing transparency, honesty, and protection of the public.

Preparing for the New Compliance Landscape in California Real Estate

By the close of the meetings, attendees left with a clear understanding that the 2026 landscape demands heightened diligence, better adherence to written agreements, and careful attention to evolving risk-management practices. From MLS policy to professional standards and legal compliance, the overarching theme remained consistent: transparency, accuracy, and proactive risk mitigation are more essential than ever for REALTORS® and associations across California.

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