That's a matter of their judgment.I'm not a lawyer, but I am an investor/agent and that's what I think is legal and ethical.

He also said that the real estate code of ethics states that inspection findings that affect the value of the home must be updated on the MLS.

Yes I am honest an ethical AND I am offended by your assumptions.

I am a newbie and am trying to make sure that I deal with sellers ethically.

I sincerely hope to have someone who can show me the business, mentor me and in the future expect loyalty and great business ethics from my side.

To me this is a bit of gray area - pertaining to business practices and moral/ethical standards.

You've gotta use your head and be ethical.

The question was more with regards to the ethics of choosing to ruin one tenant's personal property over another's when a reserve fund should be set aside to fix a problem associated with the landlord's property that is clearly inconveniencing his tenants.

You need to see how you communicate, things in common, are they honest, judge integrity, you may not need the most successful you may want more knowledge and experience with an agent that doesn't have to beat their head in to stay afloat, they may have retired from another profession so they may have time to take more interest in you.You're looking for a personal business relationship, not a girl friend or drinking buddy, but someone who has ethical standards, knows the business is current understands investing aspects and that has time to devote attention to you.

Both of those business models can be very complimentary (if operated ethically).