NAR Amends Code of Ethics 2008 Changes

* Amended the NAR Code of Ethics to ensure the “true picture” test in Article 12 applies to electronic communications such as e-mail and text messages, and added a Standard of Practice to ensure that REALTORS® present a true picture in their URLs and domain names. The Code of Ethics changes required passage by the Delegate Body, which approved the measure at its meeting following the Board of Directors. Related changes to model MLS rules were also adopted.

* In MLS policy changes aimed at upping enforcement, the board authorized REALTOR® MLSs to impose financial penalties of up to $15,000—an increase from $5,000—for violations of MLS rules; authorized REALTOR® MLSs to remove any or all of a participant's listings in cases where the participant fails to report status changes on a timely basis; and adopted measures on the procedures for imposing discipline.

* Renamed the “Standards of Conduct for REALTOR® Associations” the “Professional Practices for REALTOR® Association Leadership” and directed NAR to increase awareness of the practices, which cover ethics and business practices among volunteers and staff leaders.

* Renamed the “NRDS Criteria for Points of Entry Minimum Standards” the “NRDS Standards and Policies,” and set rules regarding contact information to be included in core NRDS fields. The board also set rules for who can input new and additional member data into the data, and gave state and local NRDS staff four years to bring their databases into compliance with the national database.

Additional board steps

* Approved $475,617 for five legal cases involving questionable infrastructure improvements required of subdivision developers, an ongoing Internet mapping patent infringement case, the validity of a listing agreement with an incomplete property legal description, an ongoing challenge against a municipality's real estate transaction ordinances, and the legality of excluding exclusive agency listings in MLS feeds to broker and other listing Web sites.

The board referred back to the Nominating Committee for further consideration a proposed package of changes to the procedures for electing national officers. The proposed changes are expected to be considered for a vote at the Board of Directors meeting at the 2008 NAR Midyear Legislative Meetings in Washington.

Reports

2008 President Richard F. "Dick" Gaylord highlighted the need to reach out to younger practitioners in the industry and showcased NAR’s efforts to recognize younger members through the Young Professionals Network, a newly formed organization that grew out of REALTOR® Magazine’s annual “30 under 30” feature.

The board heard an upbeat report on the financial health of the association, which has now reached 1.4 million members and has $300 million in total assets, $247 million in total equity, and $218 million in its investment portfolio. The association’s only debt, of $25.5 million, is for its Washington, D.C., building. That debt is being paid down quickly, said NAR Treasurer Bruce Wolf.

With 2008 national elections nearing, The REALTORS® Political Action Committee is well positioned with more than $7.2 million in contributions for 2007. The total includes $6.7 million from states—109 percent of the fair share goal—as well as $282,000 from the 160 members of the President’s Circle; $26,000 from NAR’s affiliated societies, institutes, and councils; and $20,000 from NAR staff, said RPAC Fundraising Chair Marbury Little.

Errol Samuelson, president of REALTOR.com, reported to the board on innovations to the REALTOR®-owned site, which today hosts an average of 4.3 million listings a day and sees monthly traffic of about 5 million to 6 million consumers. The site boasts a new interface for the popular Apple iPhone digital device and has rolled out an enhanced Find a Neighborhood search feature that enables consumers to search by the kind of neighborhood they’re looking for, such as “family friendly” or “hip and cool.” The search results provide detailed information through maps, photos, and narrative descriptions posted by residents.