Organizational Alignment Core Standards Noncompliance Appeal Hearing Procedure as amended by the NAR Board of Directors effective for the Third Compliance Cycle (July 1, 2016 - December 31, 2017) and subsequent cycles. 

Background

As stated in the Organizational Alignment Core Standards, if a state association does not confirm that a local association is compliant with the Mandatory Core Standards, that local association’s charter as a member board of the NATIONAL ASSOCIATION OF REALTORS® will be revoked.  However, no association will lose its charter without first being given an opportunity to appear before a hearing panel of the NAR Association Executives Committee to show cause why the association’s charter status as a member board should not be terminated. In such cases the panel’s recommendation will be reported to the NAR Board of Directors for final action.  If a local association does not challenge the state’s conclusion that the local association did not meet the Core Standards, the fact that the association’s charter is being revoked will be included in the NAR Board of Directors consent agenda.

Process

State associations, using the online compliance certification system, will provide NAR with the names of the local associations that met the Core Standards requirements.  (Note: Effective upon commencement of the third compliance cycle on July 1, 2016, the deadline for local associations to submit compliance information to state associations is December 31 each year. State associations have until January 30 to certify their local associations’ compliance status to NAR.)  Any association shown as not being compliant will be subject to charter revocation.  NAR will notify those associations and inform them that the charter revocation process has begun.  If the local association has reason to believe its charter should not be revoked and chooses to appeal the state association’s conclusion, it has until February 28 to file a written challenge to the state association’s determination with NAR.

The NAR Association Executives Committee chair and vice chair shall recommend at least five AEC members or other REALTOR® association executives to serve on the hearing panel for the NAR president’s approval.  Two back-up panelists will also be recommended to ensure that panelists are not from the same state or region as the local association submitting the challenge.

Local associations challenging the state association’s determination must show proof of compliance that clearly refutes the state association’s conclusion.  The challenge must be signed by the local association president, president-elect, and chief staff executive.  NAR will send a copy of the challenge to the hearing panel and to the state association president, president-elect, and chief staff executive. All information pertinent to the challenge is confidential and will not be shared with anyone other than the respective local and state association staff and volunteer leaders, the hearing panel, and NAR staff who have a need to know. 

Hearing panels will meet in Chicago (or where staff and the AEC chair determine, if circumstances dictate a different location) to consider all challenges.  The chief staff executive, president, and/or president-elect of the local association filing the challenge will have the opportunity to participate in the hearing, conducted either in person or through an online meeting service.  If the local association staff and volunteer leaders choose to appear at the hearing, they do so at their own expense.

If the hearing panel determines that the local association is substantially compliant with the Core Standards and should be given additional time to meet the Core Standards, the panel may grant an extension until April 30, by which time compliance must be demonstrated.  If the hearing panel determines that compliance has been satisfactorily demonstrated, that conclusion shall be reported to the state association.  If the hearing panel determines that the local association did not meet the Core Standards, the decision will be reported directly to the NAR Board of Directors in May on the Directors’ consent agenda.  Charter revocation will be effective immediately following approval by the Board of Directors.

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