Standard of Practice 10-5 prohibits REALTORS from using harassing speech, hate speech, epithets or slurs based on the protected classes of Article 10. 0000027608 00000 n Your resource for all things Real Estate. Article 10, Standard of Practice 10-5 Case Interpretations Updated - Legal Podcast Cate and Jon discuss the additional Article 10, Standard of Practice 10-5 Case Interpretations that were adopted by NAR's Professional Standards Committee. Monday - Friday 8:30am-4:30pm TEL: 978-462-5415 FAX: 978-462-2839 EMAIL: services@ gnarealtor.com 143 State Street, Suite 5 Newburyport MA 01950 (Amended 1/98), The fact that a prospect has retained a REALTOR as an exclusive representative or exclusive broker in one or more past transactions does not preclude other REALTORS from seeking such prospects future business. Including home buying and selling, commercial, international, NAR member information, and technology. Therapeutic communities (TCs) gained prominence in the 1960s and 1970s as an effective form of residential treatment. (Amended 1/93), Only REALTORS who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have sold the property. Under the amendment, REALTORS must not use harassing speech, hate speech, epithets, or slurs based on race, color, [] Additional Guidance for Standard of Practice 10-5 Context Matters - There is No List of Words or Phrases that Would Result in an Automatic Violation of the Code (Amended 1/04), REALTORS, acting as subagents or as buyer/tenant representatives or brokers, shall not attempt to extend a listing brokers offer of cooperation and/or compensation to other brokers without the consent of the listing broker. Affordability, economic, and buyer & seller profile data for areas in which you live and work. Frequently Asked Questions about the Recommendations from the NAR Professional Standards Committee Being Presented to the Board of Directors - Free download as PDF File (.pdf), Text File (.txt) or read online for free. The NAR Professional Standards Committee met on October 5, 2020, to consider recommendations from its Interpretations and Procedures Advisory Board on the Code of Ethics applicability to discriminatory speech and conduct. 0000012750 00000 n electronically, REALTORS shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party. (Amended 1/93), REALTORS, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. Recommendation 4: That proposed Standard of Practice 10-5 become effective upon final approval. (Amended 1/12), REALTORS, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other REALTORS absent a specific written agreement to the contrary. (Amended 1/98), REALTORS, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service. (Amended 1/14), REALTORS, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. professional standards procedures of member boards must reflect substantively the approved due process policies and procedures of this manual in order to ensure board entitlement to coverage by the professional liability insurance policy of the national association in litigation involving the board in connection with board enforcement of the code 0000026874 00000 n 2022 National Association of REALTORS. 0000032589 00000 n In the interpretation of this obligation, REALTORS can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, Whatsoever ye would that others should do to you, do ye even so to them., Accepting this standard as their own, REALTORS pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below. (Adopted 5/86, Amended 1/04), When seeking information from another REALTOR concerning property under a management or listing agreement, REALTORS shall disclose their REALTOR status and whether their interest is personal or on behalf of a client and, if on behalf of a client, their relationship with the client. May 13, 2021. (Amended 1/93). In selling property they own, or in which they have any interest, REALTORS shall reveal their ownership or interest in writing to the purchaser or the purchasers representative. REALTORS having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of REALTORS. Where disclosure is authorized, REALTORS shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker. (Adopted 1/93, Amended 1/95), When acting as listing brokers, REALTORS shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Explanatory Notes. 2/24/2020 2020 Code of Ethics & Standards of Practice | Harassment includes inappropriate conduct, comment, display, action, or gesture based on another persons sex, color, race, religion, national origin, age, disability, sexual orientation, gender identity, and any other protected characteristic. One of the policies that was approved, Standard of Practice 10-5, reads as follows: "Realtors must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex . 0000016319 00000 n As a member, you are the voice for NAR it is your association and it exists to help you succeed. 0000003955 00000 n Article 17 does not require REALTORS to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board. (Adopted 1/97, Amended 1/07), 3) Where a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. When an opinion of value or price is prepared other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following unless the party requesting the opinion requires a specific type of report or different data set: 1) identification of the subject property, 4)limiting conditions, including statements of purpose(s) and intended user(s), 5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants, 6)basis for the opinion, including applicable market data, 7) if the opinion is not an appraisal, a statement to that effect, 8) disclosure of whether and when a physical inspection of the propertys exterior was conducted, 9) disclosure of whether and when a physical inspection of the propertys interior was conducted, 10) disclosure of whether the REALTOR has any conflicts of interest (Amended 1/14), The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the REALTOR is an agent or subagent, the obligations of a fiduciary. (Amended 1/04), The fact that an exclusive agreement has been entered into with a REALTOR shall not preclude or inhibit any other REALTOR from entering into a similar agreement after the expiration of the prior agreement. NAR's Board of Directors today strengthened REALTORS' commitment to upholding fair housing ideals, approving a series of recommendations from NAR's Professional Standards Committee that extend the application of Article 10 of the Code of Ethics to discriminatory speech and conduct outside of members' real estate practices. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation. 0000001496 00000 n (Adopted 1/05), The obligation to arbitrate established in Article 17 includes disputes between REALTORS (principals) in different states in instances where, absent an established inter-association arbitration agreement, the REALTOR (principal) requesting arbitration agrees to submit to the jurisdiction of, travel to, participate in, and be bound by any resulting award rendered in arbitration conducted by the respondent(s) REALTORs association, in instances where the respondent(s) REALTORs association determines that an arbitrable issue exists. 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. The NAR Code of Ethics is divided into 4 major sections: Preamble, Duties to the clients, Duties to the Public, and Duties to REALTORS. Applicability of the Code of Ethics: A REALTOR shall be subject to disciplinary action under the Code of Ethics with respect to all of their activities. (Amended 1/93). NAR and its affiliated Institutes, Societies, and Councils offer a wide selection of real estate training options. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR. (Revised 5/21). Promote the Interests of Their Client and Treat All. In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between REALTORS (principals) associated with different firms, arising out of their relationship as REALTORS, the REALTORS shall mediate the dispute if the Board requires its members to mediate. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction. unless lack of any of these is disclosed to the party requesting the opinion in advance. (Amended 1/04) Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. In such cases arbitration shall be between the listing broker and the buyer or tenant representative and the amount in dispute is limited to the amount of the reduction of commission to which the listing broker agreed. (Adopted 1/07). (Adopted 1/07). The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail. Under Statement of Professional Standards Policy #29, REALTORS are subject to the Code of Ethics' standards in all of their activities. Local broker marketplaces ensure equity and transparency. Factors defined as non-material by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not pertinent for purposes of Article 2. 0000025067 00000 n They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. The NARR Standard provides guidance for certifying effective recovery residences and incorporates the collaborative values of acute care and social models of recovery. (Adopted 11/87, Amended 1/99), REALTORS shall not intentionally impede the Boards investigative or disciplinary proceedings by filing multiple ethics complaints based on the same event or transaction. In November 2019, the National Association of REALTORS Board of Directors approved a change to the NAR Code of Ethics training requirement, extending it from every two-years to every three-years. The Committee is presenting a package of recommendations concerning, broadly, the Code of Ethics' applicability to discriminatory speech and conduct. Hearing Panels should also be fully aware of, Harassing speech in Standard of Practice 10-5 is similar to the definition of harassment in NARs Code of Conduct and Anti-Harassment Policy, except that Standard of Practice 10-5 is limited to the protected classes under Article 10. NARs operating values, and long-term goals. Member Support is available Mon-Fri, 8am-5pm Central. Information concerning latent material defects is not considered confidential information under this Code of Ethics. When it becomes apparent that information on a REALTORs website is no longer current or accurate, REALTORS shall promptly take corrective action. When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the seller or landlord and any amount credited or paid to a party to the transaction at the direction of the respondent. Readers are cautioned to ensure that the most recent publications are utilized. (Adopted 1/07, Amended 1/12), The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the REALTOR controls once the REALTOR knows the statement is false or misleading. Professional Standards Committee for a hearing. (Amended 1/92), REALTORS shall not obstruct the Boards investigative or professional standards proceedings by instituting or threatening to institute actions for libel, slander, or defamation against any party to a professional standards proceeding or their witnesses based on the filing of an arbitration request, an ethics complaint, or testimony given before any tribunal. Recommendation 3: (Adopted 11/86, Amended 1/16), REALTORS, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as REALTORS or real estate licensees. To add the following new Standard of Practice under Article 10: Recommendation 4: When REALTORS prepare opinions of real property value or price they must: 1) be knowledgeable about the type of property being valued, 2) have access to the information and resources necessary to formulate an accurate opinion, and, 3) be familiar with the area where the subject property is located. BUYER: Date: Time: BROKER: Date: Time: SELLER: Date: Time: SELLER: Date: Time: RESIDENTIAL OTHER available resources to ensure effective communication with clients, families and caregivers. (Amended 1/10). The purpose of this publication is to serve as an official guide to the high standards of honesty, integrity, and responsibility to which all members of the National Association of the Remodeling Industry (NARI) are pledged in the conduct of business. Founded as the National Association of Real Estate Exchanges in 1908. America's largest trade association, representing 1.5 million+ members, including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries. (Adopted 1/03, Amended 1/09), REALTORS shall not access or use, or permit or enable others to access or use, listed or managed property on terms or conditions other than those authorized by the owner or seller. NAR Professional Standards Committee has approved the revision to Article 10 of the Code of Ethics, by adding Standard of Practice 10-5, which will read; REALTORS must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity." Recommendation 5: a REALTOR's activities. Learn and grow with our guides and gain new skills and learn easy "how to's" that you can put into practice right now. That the definition of public trust be expanded to include all discrimination against the protected classes under Article 10 of the Code of Ethics and all fraud. REALTORS. Additionally, the conduct must have occurred after the effective date of November 13, 2020. Member recognition and special funding, including the REALTORS Relief Foundation. 0000015685 00000 n 0000024688 00000 n (Amended 1/11), REALTORS shall not misrepresent the availability of access to show or inspect a listed property. Use the data to improve your business through knowledge of the latest trends and statistics. Standard of Practice 10-5 REALTORS must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. As of today, November 13, 2020, these recommendations are approved by the NAR Board of Directors and are effective immediately. Founded as the National Association of Real Estate Exchanges in 1908. 0000011835 00000 n When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the listing broker and any amount credited or paid to a party to the transaction at the direction of the respondent. The Committee approved the. Recommendation 1: All Rights Reserved. That proposed Standard of Practice 10-5 become effective upon final approval. Hearing Panels should note that while all of the Standards of Practice under Article 10 inform them as to the interpretation and . REALTORS shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. This obligation to the client is primary, but it does not relieve REALTORS of their obligation to treat all parties honestly. 0000021838 00000 n This does not preclude REALTORS (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements. Code of Ethics and Standards of Practice of the National Association of REALTORS Effective January 1, 2022 Preamble Duties to Clients Customers Duties to the Public Duties to REALTORS Explanatory Notes Where the word REALTORS is used in this Code and Preamble, it shall be deemed to include REALTOR-ASSOCIATEs. REALTORS shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. 0000027691 00000 n In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction. In similar fashion, Merriam Websters Dictionary defines hate speech, epithets, and slurs as follows: Hate Speech: speech that is intended to insult, offend, or intimidate a person because of some trait (as race, religion, sexual orientation, national origin, or disability)., Epithet: 1a: a characterizing word or phrase accompanying or occurring in place of the name of a person or thing; b: a disparaging or abusive word or phrase, Slur: 1a: an insulting or disparaging remark or innuendo: ASPERSION; b: a shaming or degrading effect: STAIN, STIGMA, Standard of Practice 10-5 should be interpreted as applying equally to speech, images, and symbols. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. (Amended 1/14), Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation. REALTORS shall use reasonable efforts to ensure that information on their websites is current. (Amended 1/20), REALTORS, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Latest News 0000008289 00000 n Including home buying and selling, commercial, international, NAR member information, and technology. REALTORS, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing brokers offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing brokers agreement to modify the offer of compensation. (Amended 1/14) [listen], When involved in the sale or lease of a residence, REALTORS shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however, REALTORS may provide other demographic information. (Amended 1/00), REALTORS shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. (Adopted 1/20), REALTORS shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owners agent or broker. The Board made these changes effective immediately, though the changes cannot be applied to speech or conduct that occurred before the effective date. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and REALTOR. Fulfill your training requirement with free courses for new and existing members, C2EX. After a REALTOR has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. (Adopted 1/94, Renumbered 1/05 and 1/06, Amended 1/14), As used in Article 10 real estate employment practices relates to employees and independent contractors providing real estate-related services and the administrative and clerical staff directly supporting those individuals. They impose grave social responsibility and a patriotic duty to which REALTORS should dedicate themselves, and for which they should be diligent in preparing themselves. Party Beneficiary Brokers ("Signees") for that Contract covering the Property and becomes effective upon a Signee placing the final and required signatures and/or initials on this Release and Delivers Notice to cause this Release to be binding on . 0000003257 00000 n (Adopted 1/93, Renumbered 1/98, Amended 1/06), Fees for preparing appraisals or other valuations shall not be contingent upon the amount of the appraisal or valuation. Including Legal, Agent & Broker, and Property Rights Issues. Access recent presentations from NAR economists and researchers. Play over 265 million tracks for free on SoundCloud. Upon the written request of the listing broker who submits a counter-offer to the buyers tenants broker, the buyers/tenants broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter-offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. Where the word REALTORS is used in this Code and Preamble, it shall be deemed to include REALTOR-ASSOCIATEs. Hearing Panels should, Standard of Practice 10-5 should be interpreted as applying equally to speech, images, and symbols. (Amended 1/99), REALTORS shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. Standard of Practice 10-5: REALTORS must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/93), REALTORS shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. 0000031319 00000 n (Amended 1/21) NEW Standard of Practice 10-5 REALTORS must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/98). As a member, you are the voice for NAR it is your association and it exists to help you succeed. The changes to Policy Statement 29, Code of Ethics and Arbitration Manual, became effective upon final approval. Upon the written request of the listing broker who submits a counter-offer to the buyers tenants broker, the buyers/tenants broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter-offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. (Amended 1/95), REALTORS shall not offer for sale/lease or advertise property without authority. It consists of seventeen articles with the respective standard of practice. (Amended 1/12), The filing of litigation and refusal to withdraw from it by REALTORS in an arbitrable matter constitutes a refusal to arbitrate. REALTORS Political Action Committee (RPAC), Mission, Vision, and Diversity & Inclusion, Download a PDF of the 2022 NAR Code of Ethics & Standards of Practice, Additional Resources for Members & the Public. Statement of Professional Standards Policy 29 provides that REALTORS are subject to disciplinary action with respect to all of their activities, except in those circumstances in which the Code of Ethics only applies to real estate-related activities by virtue of its Articles or Standards of Practice. Complete listing of state and local associations, MLSs, members, and more. Commentary from NAR experts on technology, staging, placemaking, and real estate trends. Avoid Exaggeration, Misrepresentation, or. If you complete your ethics training outside of GKAR, please forward your proof of completion to COE@gkar.com. Research on a wide range of topics of interest to real estate practitioners. (Amended 1/93), REALTORS shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) REALTORS, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties.
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