New NAR Code of Ethics Provisions Take Effect

As REALTORS®, we know the importance of treating all costumers with equal care, respect and service. To ensure that our industry stays in line with, if not ahead of, the federal protections to certain classes of individuals, the Code of Ethics will be revised periodically. With this being said, Article 3 of the Code of Ethics has added a provision. This provision states that “REALTORS® may not refuse to cooperate on the basis of a broker’s race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.” This provision was created to specifically show REALTORS’® intolerance for discrimination of any sort. Additionally, Standard of Practice 12-2 was deleted and Standard of Practice 12-1 was amended. The 12-1 amendment states that unless they are receiving no compensation from any source for their time and services, REALTORS® may use the term “free” and similar terms in their advertising and in other representations only if they clearly and conspicuously disclose:

• By whom they are being, or expect to be, paid;
• The amount of the payment or anticipated payment;
• Any conditions associated with the payment, offered product, or service, and
• Any other terms relating to their compensation.

There was also a change to the Code of Ethics training requirement. Previously, REALTORS® were required to attend a Code of Ethics course once every two years in order to fulfill this requirement. The NAR Board of Directors approved a change now requiring REALTORS® to successfully complete a Code of Ethics course once every three years. The deadline for this current cycle is now December 31, 2021. To find out more about this provision and NAR’s statement, click here. View the updated Code of Ethics here.