Core Standards for State and Commercial Associations Work Group - Final Report

Association Executives Committee
Core Standards for State and Commercial Associations Work Group
Thursday, November 1, 2018
Boston
Final Report

Work Group Purpose

Consider revisions to the current Core Standards criteria for state associations and commercial overlay boards.

Standards for Commercial Associations

The work group reviewed the Core Standards certification form for commercial overlay boards, as proposed by the work group’s commercial team, and recommended that the following motion be submitted to the AEC, and then to the Executive Committee and Board of Directors:

“Adopt customized Core Standards for commercial overlay boards that incorporate the Commercial Services Accreditation Benchmarks, along with examples in the certification form that are pertinent to commercial associations, effective with the fifth Core Standards compliance cycle, which begins January 1, 2019 (Appendix A)” (Note: Recommendation was approved by the Board of Directors.)

Rationale: The Core Standards were designed for local associations, and the examples and terminology in the Core Standards certification form are residential in nature. Separate standards for commercial overlay boards are more relevant to commercial operations and will minimize confusion in the certification process.

NOTE: The recommendation was approved by the Board of Directors and will be effective with the compliance cycle beginning January 1, 2019.

Standards for State Associations

A goal of the work group was to identify Core Standards for state associations that are meaningful and valuable, without creating an undue burden on states, as they are already charged with administering the Core Standards for their local associations. A survey was sent to state AEs in August 2018 to gather input on this issue – 46 state AEs completed the survey for an 88% response rate. Lisa Herceg, NAR’s Director of Marketing Research, presented the results of the survey. Some key finding are as follows:

State associations are for the most part in agreement on these possible changes:

  • States should not be required to conduct a consumer outreach survey -- 75% agree.
  • States should not be required to conduct a REALTOR® safety activity – 71% agree.
  • States should be required to promote some kind of orientation for new AEs (most do this already) – 63% agree.
  • States should be required to develop state Calls for Action, if applicable issues arise, and encourage local participation in such calls – 53% agree.

Some gray areas of the survey, where there was not a resounding yes or no:

  • Should states be required to provide state-specific guidance on governance and bylaws issues for their locals? 47% agree, 37% disagree, 16% not sure.
    A common sentiment expressed here is that states should provide resources and best practices, but should not be required to provide “legal counsel.”
  • Should states be required to develop information and communications regarding the value of and benefits received for investing and participating in RPAC? 41% agree, 41% disagree, 17% not sure. A common sentiment expressed here is that states already do this; and NAR should generate the materials and require states to disseminate.

The work group agreed that additional input from and further dialogue with state associations is necessary before recommending separate standards for state associations. An AEC Core Standards Work Group will continue next year to consider separate Core Standards for state associations.

Other Business -- Recommendations

The work group confirmed its support, as determined at its last meeting, to revise the Core Standards certification form to include a requirement for third party documentation for audits, reviews, and compilations.

The work group also confirmed it’s support, as determined at its last meeting, to include sponsorship of a Good Neighbor Award Program as an option for the Consumer Outreach Core Standard.

The following recommendation was submitted to the AEC and approved.

“Require that third party source documentation (cover letter) for audits, reviews, and compilations be submitted during the Core Standards certification process; and that sponsorship of a Good Neighbor Award Program be included on the Core Standards certification form as an option for the Consumer Outreach Core Standard.”

Next Steps

  • AEC leadership will appoint another Core Standards Work Group in 2019 to continue consideration of separate standards for state associations. The work group will also be asked to consider modifying the Core Standards to require both state associations to review the advocacy section of Core Standards when a local association has territory in two states.
  • Members of the 2018 AEC Core Standards for State and Commercial Associations Work Group, who are interested in serving on the 2019 work group, should be sure to reapply when the work group volunteer appointment request form appears in the December and January INS.

Work Group Members

Maranda DeSanto, RCE, MN – Co-chair
Angela Shields, RCE, CAE, TN – Co-chair
Michael Barr, RCE, CAE, NC
Mary Cano, RCE, NJ
Christy Conway, RCE, GA
Jessica Dietrich, OK
John Fridlington, RCE, CAE, MN
David Garrison, RCE, CAE, FL
Ruth Hackney, RCE, MT
Beth Hansen, RCE, CAE, MS
Brian Jetty, TX
Tracy Johnson, WI
Raymond Joseph, WV
Debra Junkin, RCE, GA
Shay Lawson, AL
Shauna Love, CA
Dennis MacDonald, RCE, FL
Ali Mann, RCE, NY
David McClintock, IL
Tom O'Rourke, GA
Monica Schulik, RCE, AZ
Mark Simonich, MT
Brent Swander, OH
Lynne Wherry, VA
Kendra Yevoli, NM
Rebecca Grossman, RCE, AZ (AEC Chair)
Duncan MacKenzie, RCE, NY (AEC Vice Chair)

Liaison

Larry Keating

Staff Executives

Cindy Sampalis
Katie Goldberg

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