Dear Association Executives,
I wanted to bring to your attention a specific item that will be up for discussion at the upcoming REALTORS® Legislative Meetings, which run from May 31 to June 5.
As you know, the Code of Ethics is what distinguishes REALTORS® from mere real estate professionals. It is the foundation of our ability to earn and maintain consumers’ trust as we fulfill our mission to preserve, protect, and advance the right to real property for all. To ensure these guidelines are up to date, the Professional Standards Committee is tasked with continually assessing and, when appropriate, amending the Code of Ethics.
The Professional Standards Interpretations and Procedures Advisory Board—composed of 18 members of the Professional Standards Committee—recently met and recommended potential amendments related to Article 10 from the Code of Ethics—specifically Standard of Practice 10-5 (“SOP 10-5”) and Professional Standards Policy Statement 29. Article 10 prohibits REALTORS® from denying equal professional services and employment opportunities based on protected characteristics. SOP 10-5 was adopted in 2020 to further clarify the application of Article 10 by prohibiting REALTORS® from using harassing speech, hate speech, epithets, or slurs.
Like any other article of the Code of Ethics, state and local associations are empowered to enforce Article 10.
In the years since 2020, it has become clear that there is ongoing confusion and uncertainty regarding the interpretation and implementation of these standards of practice. With 1.5 million members across the country, we need to ensure the specific articles of the Code of Ethics are clear in their language and intent and can be enforced fairly and consistently. Without this, the defensibility—and sustainability—of the Code itself is in doubt.
The changes under consideration would 1) create a more specific definition of “harassment,” aligning with the definition in the NAR Member Code of Conduct, and 2) focus Article 10’s – along with the entire Code of Ethics’ – application on instances in which REALTORS® are operating in their professional capacity, consistent with similar ethical requirements applied by other large trade associations across the country.
Further, the changes would reduce risk to state and local associations and their volunteer leadership who administer and enforce Article 10.
We take any changes to the Code of Ethics very seriously, and the amendment process is thoughtful and rigorous. In terms of next steps, if the Professional Standards Committee accepts the Advisory Board’s recommendation at RLM, then the committee can move the changes for the Executive Committee’s review. Any change to the Code of Ethics must be ratified by the NAR Board of Directors.
I want to emphasize that NAR is deeply committed to upholding principles of fair housing and equal treatment for all consumers, and these proposed changes do not change that.
Please keep in mind that the proposed changes will not be evaluated until the upcoming REALTOR® Legislative Meetings, as governed by the NAR Constitution. In the meantime, if you have any questions about the proposed changes or NAR’s formal process for amending the Code of Ethics, please contact the NAR Member Policy team at [email protected].
Thank you,
Kevin Sears
President, National Association of REALTORS®
