At its June 5 meeting, The National Association of REALTORS® Board of Directors approved policy language changes related to Article 10 of the NAR Code of Ethics. Article 10, which prohibits REALTORS® from denying equal professional services and employment opportunities based on protected characteristics, remains unchanged.
The board action brings greater clarity to Standard of Practice 10-5, which prohibits members of NAR from harassing any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. New language in the standard creates a specific definition of “harassment” to align with the definition in the NAR Member Code of Conduct.
One day earlier, NAR’s Executive Committee approved a related change, a revision to Professional Standards Policy Statement 29, which guides local and state associations on application of the Code’s Articles and Standard of Practices. This change focuses enforcement on instances in which REALTORS® are operating in their capacity as real estate professionals, in association with their real estate businesses, or in real estate-related activities.
A Living Document
Like the English language itself, the NAR Code of Ethics evolves over time. The Professional Standards Committee and its Interpretations Advisory Board recommend changes, as needed, to ensure the articles and standards of practice are clear in their language and intent and can be enforced fairly and consistently. Any recommendations approved by the committee are reviewed by NAR’s Executive Committee before going to the board for consideration.
The committee developed Standard of Practice 10-5, and recommended an expansion of Policy Statement 29 to apply the Code to all activities by REALTORS®, five years ago against a backdrop of racial unrest following the killing of George Floyd and broad reports of housing discrimination in the U.S. Both recommendations were approved by the board on Nov. 13, 2020.
Since then, the policies have been subject to several challenges, and discussions about possible revisions have been underway for nearly a year. Throughout those discussions, NAR leaders said that they strongly believed in preserving SOP 10-5 but that updates were necessary to protect Article 10’s intent and to make the Code of Ethics “more sustainable and defensible to legal challenges.”
New Standard Applies Immediately
At the June 5 meeting, NAR Professional Standards Committee Chair Todd Beckstrom of Chapin, S.C., introduced the recommended language changes, saying they would reduce uncertainty and risk for state and local associations and the volunteer leaders who administer and enforce Article 10 and would bring NAR’s standard in line with similar ethical requirements applied by other large trade associations across the country. Board members agreed, approving the measure.
The revised language will be effective immediately. In a letter to key stakeholders following board ratification of the changes, NAR President Kevin Sears explained the rationale for the changes and reiterated NAR’s commitment “to upholding principles of fair housing and equal treatment for all consumers.”
