What Do the NAR Code of Ethics Changes Mean for REALTORS in 2024
The National Association of REALTORS (NAR) has always had a role in promoting the standards within the real estate industry. In keeping with this tradition, significant updates to the NAR Code of Ethics and Arbitration Manual for 2024 have been announced, marking a shift towards more inclusive, fair, and ethical practices across the board.
For professionals committed to excellence in real estate, understanding and adapting to these changes support a more mindful practice of the profession. Bob Brooks School has compiled a guide on the major changes to the manual that REALTORS should be familiar with.
Inclusivity and Clarity at the Core
The language of the 2024 Code of Ethics and Arbitration Manual has been updated to be more inclusive and gender-neutral. Overall, this signifies an effort for every member to feel seen, respected, and included. For example, terms like “Board” have been replaced with “Association.”
Additionally, one update includes the introduction of two new Code Comprehension documents that clarify the Standards of Practice 1-16, 3-8, 3-9, and 3-10 and offer clear guidance on the ethical responsibilities of both listing and cooperating agents. These documents underscore the importance of equitable access to listed properties and aim to eliminate unfair advantages.
Implications for Real Estate Practices
Extended Due Process
An extension from 10-days to 30-days to hear appeals of Grievance Committee dismissals/classifications allows more time for thorough review and fair judgment. As a result, this change ensures that every case is given the due diligence it deserves.
Conflict of Interest Avoidance
Directors who refer a matter to the Grievance Committee should not participate in the tribunal that decides the case. This directive firmly opposes conflicts of interest and upholds impartiality in the justice system’s administration.
Enhanced Mediation Flexibility
The amendments supporting mediation highlight its benefits over arbitration, emphasizing speed, cost-effectiveness, and the preservation of relationships. This provides an appealing resolution pathway and underscores NAR’s dedication to fostering a community where disputes can be resolved amicably and justly.
Fluidity in Discipline and Arbitration
Clarifications on the Board of Directors’ ability to selectively dismiss articles from decisions without negating the entire complaint illustrate a nuanced approach to discipline. This, coupled with the adaptability in considering previous violations, showcases a robust framework that tailors disciplinary actions to fit the gravity and context of each violation.
The Path Forward
For REALTORS, these updates mean staying informed and adapting practices accordingly. It highlights the growing emphasis on ethical conduct, fairness, and inclusivity within the industry. By familiarizing themselves with the new Code Comprehension documents, REALTORS can ensure their actions align with these updated standards, thereby adhering to regulations and promoting a more ethical and inclusive real estate market.
Bob Brooks School provides students and alumni with the most up-to-date knowledge and tools to succeed in this evolving landscape. Our online courses include prelicensing, post-licensing, and continuing education for real estate and insurance. Additionally, our courses imbue future professionals with the skills and ethical awareness required for success in today’s industry.
Keep Your Professional Practices Up to Date With the Latest Standards
Enroll with us today and gain the knowledge and skills needed to lead in the real estate industry. By starting on your educational journey, you’ll take the first step towards your career, opening up opportunities. You can contact us by calling 225-292-7277 or sending us a message online. Don’t miss this chance to invest in your professional growth!
