Realtors have a duty under most state laws to exercise reasonable skill and care and to deal honestly and in good faith, similar to Washington state statute RCW 18.86.030.  Likewise there is the REALTOR® Code of Ethics, specifically Article 11, which provides that "REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service or unless the facts are fully disclosed to the client." 

Realtors have an ethical if not legal duty to “know their territory,” both geographically and in terms of competence.  Many do not embrace the risk of listing and selling “Short Sales” without engaging any outside expertise.  There is a general desire to avoid liability based on Article 13 that states, “REALTORS® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires”. There are legal and accounting ramifications to all short sales.

Most Realtors do not work routinely with clients in financial distress. When they do, they find that such transactions require an entirely different skill set. They find themselves spending so much time mired in the problems of one client that they neglect other transactions. Meanwhile, the stakes are high, and there is little or no control over the players or the experience. This makes many Realtors uncomfortable, wondering if they would be better off referring these clients to a specialist.