National Association of REALTORS® Code of Ethics
Articles & Standards of Practice
Association of REALTORS® Code of Ethics
The Code of Ethics was adopted by the National Association of REALTORS® [NAR] in 1913 and has been amended throughout the years to accommodate the ever-changing industry.
The NAR Code of Ethics and Arbitration Manual impose duties above, and in addition to, those imposed by law or regulation, and applies
ONLY to those real estate professionals who choose to become REALTORS®. REALTORS® are licensed real estate sales agents who are members of the National, State, and Local real estate associations.
The Code of Ethics is a set of standards that all REALTORS® are obligated to follow and is every REALTORS®' "Pathways to Professionalism". The Code of Ethics is composed of 17 Articles and associated Standards of Practices [SOP’s].
The Articles are broad in focus, and each Article and apply to more than one of the
following three categories:
- Duties to Clients and Customers - Articles 1-9
- Duties to the Public - Articles 10-14
- Duties to Realtors® - Articles 15-17
NOTE: Real estate professionals that are not REALTORS® are not obligated to uphold these standards, therefore the only recourse may be to file a formal complaint with the Department of Business & Professional Regulation [DBPR] at this link, or file a suit in civil court.
Code of Ethics Articles & Standards of Practice
Case Interpretations for Articles
| Article 1 | Article 7 | Article 13 |
| Article 2 | Article 8 | Article 14 |
| Article 3 | Article 9 | Article 15 |
| Article 4 | Article 10 | Article 16 |
| Article 5 | Article 11 | Article 17 |
| Article 6 | Article 12 |
This year, we’ve been celebrating the 100th anniversary of the National Association of Realtors®’ Code of Ethics and this milestone was recently recognized during the national convention in San Francisco.I’ve always thought of the Code of Ethics as a living, changing document as it spells out our professional responsibilities to our clients, fellow Realtors® and the general public. It’s been amended 37 times in its 100 years as it continues to strive to protect sellers, buyers, landlords, tenants and others who work with Realtors®.
During the convention, NAR’s Board of Directors voted to amend Article 10 of the Code of Ethics to prohibit discrimination against consumers and potential employees based on gender identity. This follows the resolution which added sexual orientation to Article 10 in 2011. These changes are examples of how our Code defines the principles of the real estate transaction. NAR also approved amending the Statement of Policy on Fair Housing, affirming that the right to rent or purchase shelter of choice should not be abridged because of sexual orientation or gender identity.
Article 10 used to mirror the “protected classes” in various federal civil rights laws. But some states and municipalities, including more than 30 municipalities in Pennsylvania, have established protections beyond those in federal law, including protections for gender identity or transgender individuals. NAR’s code goes beyond federal law in declaring that Realtors® may not use business or employment practices to discriminate against individuals who are gay, lesbian, bisexual or transgender.
As you know, not all real estate licensees are Realtors®. Our NAR membership separates us from other real estate agents who don’t subscribe to a code of ethics or have access to the educational, business and market information advantages that we, as Realtors®, have.
One of the most important and largest decisions in a consumer’s life is buying a property. We want to ensure that every consumer is treated fairly, is protected and his or her best interests are considered throughout the process. Our Code of Ethics promises consumers that we will do just that.
Quick Links
Public Trust
Article 10
What counts?
How is all this enforced?
Frequently Asked Questions
Resources
You may have heard by now that at their November meeting, the NAR Directors approved changes to the Code of Ethics. The Code and related policies are reviewed annually. Often, the changes are relatively small. This last round saw some significant changes.
Public Trust
Expansion of the definition of “Public Trust”: The definition of “public trust” was expanded to include all discrimination against the protected classes as specifically listed under Article 10 of the Code of Ethics [not just “willful discrimination”] and all fraud, and to limit the reporting requirement to final ethics decisions involving real estate-related activities and transactions. Previously, the definition included only “fraud resulting in significant economic harm.”
Article 10
New Standard of Practice 10-5:A new Standard of Practice under Article 10 was adopted. This new Standard of Practice became effective on November 13, 2020. 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.
In order to be a violation of the Code, the harassing speech, hate speech, epithet, or slur must be based on one of these protected classes.
What counts? [No, NAR is not the vigilante thought police]
Changes to Policy Statement 29, Code of Ethics and Arbitration Manual: Policy Statement 29, Code of Ethics and Arbitration Manual, was amended to expand the applicability of the Code of Ethics to all of a REALTOR®’s activities. These changes became effective on November 13, 2020.
While the application of the Code is expanded to all of a REALTOR’s activities, a complaint still must allege a violation of the Code. Here’s an example, getting a speeding ticket is not a violation of the Code. Painting a threat against a protected class on the side of your car would be. While your driving may be a violation of local municipal codes [posted speed limits] it has nothing to do with how you conduct your business as a REALTOR. But if you refer to a group of people in a way that is demeaning or hurtful, you cannot provide that group of people fair service as required by Article 10 of the Code of Ethics.
Also, a complaint must be filed. The Association is not monitoring social media or other interactions to “find” offenses.
How is all this enforced?
It’s the same full due process that has always been in effect for Professional Standards and Code enforcement. Anyone may file a complaint, which is then reviewed by the Grievance Committee who may either dismiss it or forward it for a hearing. A hearing still entitles all parties to legal counsel, REALTOR Counsel, witness, testimony, the options to challenge panelists for cause.
If a violation is found, NAR has provided guidance about disciplinary actions. The established options for disciplinary actions have not changed, and range for a letter to be placed in the member’s confidential record at GBRAR, to a fine of between $0 and $15,000, to a suspension or termination of Association or MLS privileges. A $15,000 fine is highly unusual, and reserved for egregious or repeat violations.
NAR still provides guidance for hearing panels to set discipline. Appendix VII to Part Four, Sanctioning Guidelines, of the Code of Ethics and Arbitration Manual, was amended to provide more specific guidance for hearing panels on determining discipline for violations of Article 10, Article 3 as interpreted by Standard of Practice 3-11, and violations of the public trust. In addition, a new Appendix was adopted that provides guidance on revised Policy Statement 29 and Standard of Practice 10-5. These revisions are reflected in the 2021 Code of Ethics and the 2021 Code of Ethics and Arbitration Manual.
Frequently Asked Questions
Does this limit my right to post religious beliefs?
No. You are still free to post religious beliefs. The limitation is on harassing speech, hate speech, epithets or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.
Does this limit my right to post political opinions or support for a candidate?
No. NAR has made considerable effort in this change to protect a member’s political speech. You may even post that you disagree with another political viewpoint or candidate. You may not post harassing speech, hate speech, epithets or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Note that political affiliation is not a protected class.
How can NAR dictate what I post? How is this not a violation of my First Amendment right?
NAR is a trade association, and membership is voluntary. Membership in the REALTOR® organization carries specific duties and obligations that are intentionally more restrictive than those of the public or non-members. The agreement to abide by the REALTOR® Code of Ethics as a condition and duty of membership includes an agreement to adhere to a higher standard of ethical conduct and speech than may otherwise be granted.
Isn’t the expansion to “all REALTOR activities” is an overreach? Why does NAR care what I do outside of my transactions?
Article 10, the “fair housing” article, is updated to add a new Standard of Practice 10-5 that reads “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.” This new Standard of Practice flows directly from the requirement to not deny equal professional services or be parties to a plan to discriminate. Essentially, it is nearly impossible for an individual to make discriminatory comments and then turn around and provide equal services to the individuals discriminated against.
The application of the scope of Article 10 to “all REALTOR® activities” is inclusive of those activities outside of a real estate brokerage firm and real estate transactions including but not limited to social events, social media, and non-real estate related personal interactions.
Is anyone from the Association looking for violations? Are you going through my social media posts?
No. The changes do not require Associations to proactively monitor their members’ social media accounts. An ethics complaint must be filed and proceed through your normal professional standards enforcement process in order for a REALTOR® to potentially be found in violation of the Code of Ethics.
Resources
Read the comprehensive materials available on the NAR website.
Direct any specific questions or feedback to .
Attend an online training: NAR is offering training on these changes to the Code of Ethics and professional standards policies. Information on how to register, and recordings of these trainings, can be found here.
In this video, Virginia Association of REALTORS General Counsel Laura Farley breaks down the changes and what they mean – and don’t mean.
Quick
Links
Public Trust
Article 10
What counts?
How is all this enforced?
Frequently Asked Questions
Resources
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