Real estate’s ghosts: A compliance carol for past, present and future

By Summer Goralik

This article was originally published by Inman News on December 23, 2025 and can be read here.

This is the only way I know how to wrap real estate compliance in a bow this year. After all, ’tis the season for reflection, and it arrives as a letter from compliance to the real estate industry, written in the wee hours of the night.

Dear real estate industry,

I know it’s late, but I just had the strangest dream. Truthfully, I’m not entirely certain whether I was asleep or half-awake.

It was a reenactment of A Christmas Carol by Charles Dickens. You know the tale. It’s a reckoning of sorts, where a stubborn man is forced to confront the repercussions of what he’s long chosen not to see.

In my dream, though, the main character, Mr. Ebenezer Scrooge, was Real Estate.

Real Estate is convinced it has done enough, pointing to lawsuits weathered across the country and newly implemented practice changes as proof. All the while, it touts transparency like a badge of honor, folding it neatly into mission statements and strategic plans.

And then, on Christmas Eve, Real Estate is awakened by a visitor: the Ghost of Non-Compliance. Its mission is to deliver a dire message about change, consequence and what happens when warning signs are ignored.

As in Dickens’ novel, the Ghost of Non-Compliance explains that three spirits will follow: one each from Real Estate’s past, present and future.

What follows is A Compliance Carol — a story for those willing to listen while the house is still quiet and the path forward remains something to be chosen, not something imposed.

The Ghost of Real Estate Past

The first spirit arrives quietly, offering no indictment, only reflection. It shows Real Estate what it has already lived through: Sitzer | Burnett and the lawsuits that followed, along with the headlines and unrest that rippled through the profession.

It was a time when buyer-broker compensation lived in the background, consumer understanding was often taken for granted, and transparency was only prioritized by some practitioners.

The Ghost of Real Estate Past does not accuse Real Estate of bad intent. Instead, it reveals how comfort can dull judgment — and how meaningful, wholehearted change becomes critical when old practices no longer serve the industry as it stands.

With that, the spirit fades, leaving Real Estate with the uneasy recognition that this chapter isn’t ancient history, but a not-so-distant memory.

The Ghost of Real Estate Present

The second spirit appears quickly, but lingers longer. Its goal is to halt the industry mid-stride and demand an honest review of the current moment.

On one hand, more rules exist, and guidance is plentiful. Buyer-broker agreements are now required — written acknowledgments of representation, compensation disclosure and accountability. Notably, many brokerages are working hard to enforce this new norm and the consumer-centric philosophy advanced by the National Association of Realtors’ settlement.

On the other hand, the spirit observes that these agreements are sometimes treated as a formality. Some are secured in haste; explained briefly and, at times, inaccurately; and amended when convenient, occasionally against legal advice.

A troubling report published by the Consumer Policy Center suggests some agents continue to cling to old talking points about “free” services or assurances that sellers will cover their compensation.

Before Real Estate can digest these claims, the spirit turns to private listings.

Framed publicly as seller choice or brokerage innovation, the practice takes on a different face when examined up close. Limiting listing visibility may benefit some sellers based on specific needs, but it also reshapes access for buyers and quietly tests the fiduciary duty entrusted to licensees.

More problematic are the unsolicited private-listing pitches hailed by some firms and their agents, coupled with a lack of informed consent. This strategy will likely invite public harm in the form of consumer complaints, regulatory examination and legal challenge.

Next, the spirit turns its attention to NAR, acknowledging that it is no longer the singular authority it once was. Its mission and guidance, historically supported by its members, are now the subject of growing debate and criticism.

Recent decisions raise a harder question for Real Estate to confront: whether the standards being defended truly align with the transparency being promised.

With that, the spirit suddenly asks, in a noticeably sharper tone: Did NAR’s Delegate Body really vote against amending the Code of Ethics to require disclosure of referral fees to clients?

Before Real Estate can assemble a response, the spirit presses on. Referral fees— an enduring feature of the industry — are compensation tied to licensed activity. For years, they have gone inconsistently disclosed, justified by the familiar refrain of “how business is done.”

Here, the spirit pauses for a minute, then warns: “What once flew under the radar now sits squarely in the path of scrutiny. Hiding referral fees, like hiding listings, is selective transparency, and selective transparency is not transparency at all.”

And just like that, the Ghost of Real Estate Present vanishes.

The Ghost of Real Estate Yet to Come

The third spirit emerges like a judge delivering a verdict to a room full of stakeholders.

It reveals a future where litigation does not disappear; it multiplies. Consumers become better informed, while breaches of duty claims rise. Meanwhile, journalists and consumer advocates intensify their focus, and regulators look more closely at licensees’ behavior.

In this foreshadowing, Real Estate’s fate is a predictable result of non-compliance: increased litigation, erosion of public trust and heightened government enforcement.

And then, just before the weight of it all completely settles, the vision shifts.

The spirit makes clear that this future is not fixed and that there is still time to turn it around. This remains possible because many within the industry are, at their core, wired to do right by the consumer — just as they always have.

Real Estate must prioritize compliance as part of its long-term success and re-examine daily practices with honesty and faithful regard for duty.

The spirit offers a final observation: “The distance between what is practiced and what is required — legally and ethically — is clearly visible, but still possible to close.”

So, heed the lessons of the past, resolve the blind spots of the present, and choose a different path forward. Transparency is not merely a badge to be worn, but something that runs firm-deep, through policies, contracts and conduct.

With those final words, the spirit disappears, and Real Estate wakes up.

Aiming high, all the year

Reciting this dream has made me sleepy. Before I turn in, I leave you with a line from Dickens’ classic holiday tale. After his nightly visitors, Ebenezer Scrooge declares:

“I will honor Christmas in my heart, and try to keep it all the year.”

So, dear Real Estate, kindly wake up. 2026 is just around the corner. Serve your clients and protect their best interests all the year.

Apply transparency and compliance not seasonally, but consistently.

Yours truly,

Compliance

P.S. When we talk next, remind me to tell you about a disturbing article on artificial intelligence I read the other day.

Author’s note: The opinions and recommendations expressed in this article are based on Summer Goralik’s experience as a real estate compliance consultant and former investigator for the California Department of Real Estate. They are provided for informational purposes only and should not be construed as legal advice. Readers should consult with their brokerage and/or qualified legal counsel in their jurisdiction for guidance on specific situations.

About Summer

Summer Goralik is a Real Estate Compliance Consultant and licensed Real Estate Broker (#02022805). Summer offers real estate brokers a variety of consulting services including assistance with California Department of Real Estate investigations and audit preparation, mock audits, brokerage compliance guidance, advertising review, and training. She helps licensees evaluate their regulatory compliance and correct any non-compliant activities. Summer has an extensive background in real estate which includes private sector, regulatory and law enforcement experience. Prior to opening her consulting business in 2016, she worked for the Orange County District Attorney's Office as a Civilian Economic Crimes Investigator in their Real Estate Fraud Unit. Before that, Summer was employed as a Special Investigator for the DRE for six years. Among many achievements, she wrote several articles for the DRE, which still live on the Department's website today. Prior to her career in government and law enforcement, Summer also worked in the escrow industry for nearly five years. For more information about Summer's background and services, please visit her website.