In May 2014, the National Association of REALTORS® (NAR) approved a set of core standards, which were amended two years later, replacing the previous Organizational Standards. Now each year, REALTOR® associations must prove compliance or risk losing their charters.
- NAR updated their core standards in 2014 and has begun revoking noncompliant charters
- Charters must meet or exceed core standards in six categories
- Categories with new standards include code of ethics, advocacy, consumer outreach, support of the REALTOR® organization, technology, and financial solvency
Grants were extended through June 30, 2016 for mergers taking place after the adoption of the new standards. Further extensions were offered to the first 25 mergers that occurred after the June compliance cycle, with a third cycle running through December 31 of this year. But what happens if associations still don’t meet the new standards?
Enforcement is up to the local, state, territorial, and National Association. So basically, everyone. According to Sara Wiskerchen, NAR’s Managing Director of Media Communications, there is an appeal hearing process if compliance isn’t reached by the new deadline. If the hearing determines compliance is completely unachievable, the applicable association will lose their charter.
Associations must meet or exceed core standards in six categories:
- Code of Ethics
- Consumer Outreach
- Unification Efforts and Support of the REALTOR® Organization
- Financial Solvency
Each category is further outlined on NAR’s site, with more detailed information about compliance. Every association is responsible for maintaining and enforcing a code of ethics, as well as providing mediation services as required, and issue citations. For advocacy, associations are encouraged to contribute to NAR RPAC funds (unless prohibited by state law), and participate in NAR Calls for Action efforts.
Consumer outreach requires at least four “meaningful consumer engagement activities” per year, with at least two demonstrating the association is a “Voice for Real Estate” in their market, and two specifically related to investment in local communities.
View the original article at The Real Daily