NAR Board Approves Drafting of Member Code of Excellence

As part of a wide-ranging set of recommendations to 'raise the bar' on REALTOR® professionalism, the NAR Board of Directors at its business meetings in New Orleans approved the drafting of a proposed aspirational Code of Excellence to be brought to the board at a future meeting for approval. The goal is to raise the practice of real estate measurably through increased training in the competencies that consumers value. These competencies include the stewardship of property listing data, privacy and security of consumer information, advocacy of property rights, community involvement, and technology.

The provision was passed after extensive debate on the floor of the meeting. Related provisions were also passed. These include provisions that would do the following:

• Change the frequency of NAR's Code of Ethics educational requirement from every four years to every two years, starting in 2016; add a biennial Code of Excellence education requirement; and mandate continual updating of the training.
• Help its members strive to be proficient in data content and have efficient access to the broadest range of data available.
• Develop an industry standard that would allow consumers to evaluate REALTORS® fairly and accurately.

Here is a synopsis of other actions by the NAR Board of Directors:

The NAR board extended C.A.R.s' professional standards pilot program for another five years, until the end of 2019. Under the program, a panel of CAR directors will review decisions in which suspension or termination is imposed to determine whether "lateral discipline" will be administered by other local REALTOR® associations to which the member belongs.

On the political front, the NAR board also approved broad changes to the association's fundraising program for the REALTORS® Political Action Committee (RPAC). The changes include replacing the long-standing fair-share contribution system with a needs-based funding goal. Starting in 2015, National RPAC Distribution Trustees will set a two-year election cycle goal for review and endorsement by the National RPAC Fundraising Trustees and then for submission to the NAR Leadership Team, Executive Committee, and Board of Directors. With the change, the 70-30 percentage split between the states and national association is eliminated with the exception of the Major Investor program. The change also includes a single national RPAC fundraising goal for all associations

With regard to 'issue mobilization' (ballot measures, state and local associations will have to put up some of their own funds under a "skin in the game" policy to receive NAR issues mobilization grant funds. The amount depends on the size of the grant request. The contribution can include funds from coalition partners and can also come in the form of non-financial resources such as staff and volunteer hours. The board also approved a change to the issues mobilization application form for local associations to require the state association to indicate its support or opposition to the application.

The Board also OK'd improvements to the professional standards process. To make the enforcement of professional standards more efficient, the board approved changes to the Code of Ethics and Arbitration Manual, Professional Standards Policy Statement, and other professional standards documents, that accomplish the following:

• Clarify the role of alternates in professional standards hearing panels
• Shorten time frames and clarify guidelines for ethics enforcement administration
• Establish a "fast track" administrative timeline for resolving ethics complaints
• Eliminate "rehearing" provisions
• Expand authorized use of "remote" testimony, and provide guidance on ensuring its confidentiality
• Limit the use of continuances of ethics hearings to certain specified instances
• Require persons primarily responsible for administration of professional standards processes to complete administrator training every four years
• Establish the responsibility of associations to offer ombudsman services to members, clients, and consumers, either directly or as part of a cooperative agreement
• Establish a citation system and schedule of fines for optional adoption by local and state associations