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Model Bylaws for Local Boards

To develop and modify your local board/association Bylaws, use the following documents, offered in both Microsoft Word and Adobe Acrobat formats.

The full text of each document is provided beneath the downloads for reference.

Previous years' changes to the Model Bylaws can be viewed here.


2014 NAR Model Bylaws for Local Member Boards with All-REALTOR® Membership

Microsoft Word (DOC: 268 KB)
Adobe Acrobat (PDF: 366 KB)


2014 NAR Model Bylaw Addendum for Local Member Boards with REALTOR-ASSOCIATE® Membership

Microsoft Word (DOC: 106 KB)
Adobe Acrobat (PDF: 183 KB )


Read the full text below:

Summary of Revisions to the 2014 NAR Model Bylaws for Local Member Boards

Following is a summary of 2014 amendments to the NAR Model Bylaws for Local Member Boards, provided in legislative style for ease of reference (underscoring indicates additions; strikethroughs indicate deletions).  None of these changes are required; however, adopting the changes to the Note under Article X, Section 2 (c) on Institute Affiliate membership and the new language in Article X, Section 7 will ensure the association’s Bylaws are completely up-to-date.  Additionally, the changes to Article XII, Sections 2 and 5 help to clarify quorum requirements for director meetings versus meetings of the general membership.  For more details about these changes, please refer to the Membership Policy and Board Jurisdiction Committee’s actions for 2013, available online at REALTOR.org here.

Institute Affiliate Member Dues:  At the 2013 REALTORS® Conference & Expo the NAR Board of Directors approved a dues amount of $105 for the Institute Affiliate category, up from $75, with $35 each going to the national, state, and local levels.  Article X, Section 2 (c) of the NAR Model Bylaws for Local Member Boards was amended, as follows (underscoring indicates additions; strikethroughs indicate deletions).

(c) Institute Affiliate Members.  The annual dues of each Institute Affiliate member shall be as established in Article II of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS®.

NOTE:  The Institutes, Societies, and Councils of the National Association shall be responsible for collecting and remitting dues to the National Association for Institute Affiliate members ($105) ($75).  The National Association shall credit $35 $25 to the account of a local association for each Institute Affiliate Member whose office address is within the assigned territorial jurisdiction of that association, provided, however, if the office location is also within the territorial jurisdiction of a Commercial Overlay Board (COB), the $35 $25 amount will be credited to the COB, unless the Institute Affiliate member directs that the dues be distributed to the other association.  The National Association shall also credit $35 $25 to the account of state associations for each Institute Affiliate member whose office address is located within the territorial jurisdiction of the state association.  Local and state associations may not establish any additional entrance, initiation fees or dues for Institute Affiliate members, but may provide service packages to which Institute Affiliate members may voluntarily subscribe. (Amended 11/2013 1/02)

Dues of NAR Past Treasurers:  At the 2013 REALTORS® Conference & Expo the NAR Board of Directors approved a reduction of Member Boards’ dues for REALTOR® members who are past treasurers of the National Association.  Article X, Section 7 of the NAR Model Bylaws for Local Member Boards was amended, as follows (underscoring indicates additions; strikethroughs indicate deletions).

Section 7.  The dues of REALTOR® members who are REALTOR® Emeriti (as recognized by the National Association), past presidents and past treasurers of the National Association or recipients of the Distinguished Service Award shall be as determined by the board of directors. (Amended 11/2013)

NOTE:  A Member Board's dues obligation to the National Association is reduced by an amount equal to the amount which the association is assessed for a REALTOR® member, times the number of REALTOR® Emeriti (as recognized by the National Association), past presidents and past treasurers of the National Association, and recipients of the Distinguished Service Award of the National Association who are REALTOR® members of the association.  The dues obligation of such individuals to the local association should be reduced to reflect the reduction in the association's dues obligation to the National Association.  The association may, at its option, choose to have no dues requirement for such individuals except as may be required to meet the association's obligation to the State Association with respect to such individuals.  Member Boards should determine whether the dues payable by the association to the State Association are reduced with respect to such individuals.  It should be noted that this does not affect a "designated" REALTOR®'s dues obligation to the association with respect to those licensees employed by or affiliated with the "designated" REALTOR® who are not members of the local association. (Amended 11/2013)

Quorum Requirements:  During the 2013 Midyear Legislative Meetings & Trade Expo the Membership Policy and Board Jurisdiction Committee approved optional amendments to the NAR Model Bylaws for Local Member Boards to provide guidance to local associations in establishing quorum requirements for meetings of the board of directors and membership.  Article XII, Sections 2 and 5, of the NAR Model Bylaws for Local Member Boards were amended, as follows (underscoring indicates additions):

Section 2. Meetings of Directors.  The board of directors shall designate a regular time and place of meetings.  Absence from three (3) regular meetings without an excuse deemed valid by the board of directors shall be construed as resignation.  A quorum for the transaction of business shall be a majority of the board of directors, except as may otherwise be required by state law. (Amended 05/2013)

Section 5. Quorum for Membership Meetings.  A quorum for the transaction of business at general and/or special meetings of the membership shall consist of ____% of the members eligible to vote, except as may otherwise be required by state law. (Amended 05/2013)
 

2014 Model Bylaws for Local Member Boards with All-REALTOR® Membership

Introduction

This Model is designed for Associations of REALTORS®* to use as a guide in the adoption of suitable bylaws. After filling in the blanks, some associations will find it feasible to adopt the Model Bylaws for Local Member Boards, as written.  Other associations will find it worthwhile to amend their current Bylaws using this Model, with minor variations to reflect local conditions.

*As used herein, the term “association(s)” refers to board(s) and association(s).

Instructions

Various sections of the Model Bylaws offer two or more options, and additional, “discretionary” policies that either will or will not be adopted by associations. When faced with a choice, clearly indicate which option has been selected or whether a “discretionary” policy has been adopted. If an association chooses not to adopt a particular option or a "discretionary" policy, then delete that policy language from the association’s Bylaws.

Sections Requiring Association Action

Below is a listing of those sections of the Model Bylaws which require local association action to complete missing information (blank line), and to choose from several of the options/discretionary policies provided.

Include missing information in the blank lines for each of the following provisions:

Title of document
Article I, Section 1. Name
Article II, Section 5.
Article III, Section 1.
Article IV, Section 1.(a)(1)
Article V, Option 1 - Section 3. (b)
Article V, Option 3 - Section 3. (a)
Article V, Section 4. New Member Code of Ethics Orientation
Article V, Section 6. (a)
Article VI, Section 12 Certification by REALTOR®
Article VII, Section 2.
Article IX, Section 1.
Article IX, Section 3.
Article X, Section 3.
Article XI, Section 2. Duties of Officers
Article XI, Section 3. Board of Directors
Article XI, Section 3. Board of Directors
Article XI, Section 3. Board of Directors (b)
Article XI, Section 4. Election of Officers and Directors
Article XI, Section 4. Election of Officers and Directors (c)
Article XII, Section 1. Annual Meetings
Article XII, Section 3. Other Meetings
Article XII, Section 5. Quorum
Article XIV, Section 1.
Article XIV, Section 2.
Article XVII, Section 1.
Article XVIII, Section 5. Appointment of Committee
Article XVIII, Option 2 - Section 1. Authority.

Select appropriate options/discretionary policies for the following provisions:

Article IV, Section 1 (c) Affiliate Members.
Article V, Section 2. Qualification (a)
Article V, Section 2. Qualification (b)
Article V, Section 2. Qualification (c)
Article V, Section 3. Election.
Article VI, Section 6. REALTOR Members (a)
Article VI, Section 13. Legal Liability Training.
Article VI, Section 14. Harassment.
Article VII, Section 1.
Article VII, Section 3.
Article IX, Section 1.
Article X, Section 3.
Article XI, Section 3. Board of Directors (a) and (b)
Article XI, Section 4. Election of Officers and Directors (a)
Article XI, Section 4. Election of Officers and Directors (b)
Article XII, Section 7. Action without Meeting.
Article XVI, Section 1 (a)
Article XVI, Section 1
Article XVIII, Section 1. Option 1 (operated as a committee) or Option 2 (operated as a separate corp.)
Article XVIII. Section 3. Participation, Orientation and Continuing MLS Training
Article XVIII. Section 3 (a) “Open MLS”.
Article XVIII. Section 3, Note 1.
Article XVIII. Section 3, Note 2.
Article XVIII. Section 8. Subscribers.

REALTOR-ASSOCIATE® Associations

There is an Addendum to the Model Bylaws with revisions and additional policies for local associations of REALTORS® that offer both REALTOR® and REALTOR-ASSOCIATE® memberships. Titled the 2014 Model Bylaws Addendum for Local Boards with REALTOR-ASSOCIATE® Membership, this document is available on REALTOR.org here

Updating the Association’s Bylaws

Associations are urged to compare their current Bylaws with the National Association's Model Bylaws for Local Member Boards to ensure that they include all of the appropriate policies contained therein. Adoption of these following policies, especially those important to the successful conduct of association affairs, is required:

  • Article II - Objectives:  If the association is incorporated or intends to be incorporated, its Corporate Charter also should include the objectives in this Article, verbatim, because the tax-exempt status of an association depends, to a substantial degree, upon the objectives set in its Bylaws and Corporate Charter
  • Article IV - Membership
  • Article V - Qualification and Election:  Procedure for election to membership, as outlined, avoids unreasonable and restrictive practices
  • Article VII - Professional Standards
  • Article X - Dues
  • Article XVII – Dissolution

NOTICE: Selected Uniform Provisions of the Model Bylaws require verbatim adoption

In accordance with a policy approved May 8, 1979 by the Board of Directors of the NATIONAL ASSOCIATION OF REALTORS®, Member Boards are requested to adopt and incorporate into their Bylaws, effective January 1, 1980, certain selected Uniform Provisions of the NAR Model Bylaws for Local Member Boards, as recommended by the National Association and amended, from time to time, by the Board of Directors of the NATIONAL ASSOCIATION OF REALTORS®.

The purpose of this requirement is to ensure the unity of basic purposes and relationships among associations, state associations, and the National Association.  It is recommended that Member Boards adopt, verbatim or nearly verbatim, with the review and advice of association legal counsel, the Model Bylaws for Local Member Boards.  If an association elects to adopt Bylaws other than the Model Bylaws, it is required that the association adopt, verbatim, and incorporate into this document the following named Articles (which are Uniform Provisions) of the Model Bylaws for Local Member Boards, as amended from time to time:

  • Article I - Name
  • Article II - Objectives
  • Article III - Jurisdiction
  • Article VII - Professional Standards and Arbitration
  • Article VIII - Use of Terms REALTOR® and REALTORS®
  • Article IX - State and National Membership
  • Article XV - Rules of Order
  • Article XVII - Dissolution

Questions about the NAR Model Bylaws for Local Member Boards may be referred to the Member Policy Department at 312-329-8399.

Copyright© 2014 NATIONAL ASSOCIATION OF REALTORS®
All Rights Reserved

 

NOTICE:  Selected Uniform Provisions of the Model Bylaws require verbatim adoption.
____________________________________________________________________________


Bylaws of the

____________________________ Association of REALTORS®, Inc.

(Adopted date ________________)


Article I – Name

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1. Name.  The name of this organization shall be the _________________________________ of REALTORS®, Incorporated, hereinafter referred to as the "association".

Section 2. REALTORS®.  Inclusion and retention of the Registered Collective Membership Mark REALTORS® in the name of the association shall be governed by the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS® as from time to time amended.

Article II – Objectives

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

The objectives of the association are:

Section 1.  To unite those engaged in the recognized branches of the real estate profession for the purpose of exerting a beneficial influence upon the profession and related interests.

Section 2.  To promote and maintain high standards of conduct in the real estate profession as expressed in the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®.

Section 3.  To provide a unified medium for real estate owners and those engaged in the real estate profession whereby their interests may be safeguarded and advanced.

Section 4.  To further the interests of home and other real property ownership.

Section 5.  To unite those engaged in the real estate profession in this community with the ______________________________ (state) Association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, thereby furthering their own objectives throughout the state and nation, and obtaining the benefits and privileges of membership therein.

Section 6.  To designate, for the benefit of the public, individuals authorized to use the terms REALTOR® and REALTORS® as licensed, prescribed, and controlled by the NATIONAL ASSOCIATION OF REALTORS®.

Article III – Jurisdiction

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  The territorial jurisdiction of the association as a Member of the NATIONAL ASSOCIATION OF REALTORS® is:

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

(Include exact jurisdiction description as officially approved by the Board of Directors of the National Association.  Continue description on addendum if required.)

Section 2.  Territorial jurisdiction is defined to mean:
(a) The right and duty to control the use of the terms REALTOR® and REALTORS®, subject to the conditions set forth in these Bylaws and those of the NATIONAL ASSOCIATION OF REALTORS®, in return for which the association agrees to protect and safeguard the property rights of the National Association in the terms.

Article IV – Membership

Section 1.  There shall be six classes of members, as follows.

(a) REALTOR® Members.  REALTOR® Members, whether primary or secondary shall be:

(1) Individuals who, as sole proprietors, partners, corporate officers, or branch office managers, are engaged actively in the real estate profession, including buying, selling, exchanging, renting or leasing, managing, appraising for others for compensation, counseling, building, developing or subdividing real estate, and who maintain or are associated with an established real estate office in the state of _______________________ or a state contiguous thereto.  All persons who are partners in a partnership, or all officers in a corporation who are actively engaged in the real estate profession within the state or a state contiguous thereto shall qualify for REALTOR® membership only, and each is required to hold REALTOR® membership (except as provided in the following paragraph) in an association of REALTORS® within the state or a state contiguous thereto, unless otherwise qualified for Institute Affiliate membership, as described in Section 1(b) of Article IV.

In the case of a real estate firm, partnership, or corporation, whose business activity is substantially all commercial, only those principals actively engaged in the real estate business in connection with the same office, or any other offices within the jurisdiction of the association in which one of the firm's principals holds REALTOR® membership, shall be required to hold REALTOR® membership unless otherwise qualified for Institute Affiliate membership, as described in Section 1(b) of Article IV.  (Amended 1/05)

NOTE:  REALTOR® members may obtain membership in a "secondary" association in another state.

(2) Individuals who are engaged in the real estate profession other than as sole proprietors, partners, corporate officers, or branch office managers and are associated with a REALTOR® member and meet the qualifications set out in Article V.

(3) Franchise REALTOR® Membership.  Corporate officers (who may be licensed or unlicensed) of a real estate brokerage franchise organization with at least one hundred fifty (150) franchisees located within the United States, its insular possessions and the commonwealth of Puerto Rico, elected to membership pursuant to the provisions in the NAR Constitution and Bylaws.  Such individuals shall enjoy all of the rights, privileges, and obligations of REALTOR® membership (including compliance with the Code of Ethics) except:  obligations related to association-mandated education, meeting attendance, or indoctrination classes or other similar requirements; the right to use the term REALTOR® in connection with their franchise organization's name; and the right to hold elective office in the local association, state association, and National Association. (Adopted 1/96)

(4) Primary and Secondary REALTOR® Members.  An individual is a primary member if the association pays state and National dues based on such member.  An individual is a secondary member if state and National dues are remitted through another association.  One of the principals in a real estate firm must be a designated REALTOR® member of the association in order for licensees affiliated with the firm to select the association as their "primary" association.

(5) Designated REALTOR® Members.  Each firm (or office in the case of firms with multiple office locations) shall designate in writing one REALTOR® member who shall be responsible for all duties and obligations of membership, including the obligation to arbitrate (or to mediate if required by the association) pursuant to Article 17 of the Code of Ethics and the payment of association dues as established in Article X of the Bylaws.  The "Designated REALTOR®" must be a sole proprietor, partner, corporate officer, or branch office manager acting on behalf of the firm's principal(s), and must meet all other qualifications for REALTOR® membership established in Article V, Section 2 of the Bylaws. (Amended 11/11)

(b) Institute Affiliate Members.  Institute Affiliate members shall be individuals who hold a professional designation awarded by an Institute, Society, or Council affiliated with the NATIONAL ASSOCIATION OF REALTORS® that addresses a specialty area other than residential brokerage or individuals who otherwise hold a class of membership in such Institute, Society, or Council that confers the right to hold office.  Any such individual, if otherwise eligible, may elect to hold REALTOR® or REALTOR-ASSOCIATE® membership, subject to payment of applicable dues for such membership. (Amended 1/02)

(c) Affiliate Members.  Affiliate members shall be real estate owners and other individuals or firms who, while not engaged in the real estate profession as defined in paragraphs (a) or (b) of this section, have interests requiring information concerning real estate and are in sympathy with the objectives of the association.

Optional language for 1(c), above:  The following may be adopted under Section 1(c) Affiliate Members at the discretion of the local association (provided it is not in conflict with the State Association's Bylaws):

Affiliate membership shall also be granted to individuals licensed or certified to engage in real estate practice who, if otherwise eligible, do not elect to hold REALTOR® membership in the association, provided the applicant is engaged exclusively in a specialty of the real estate business other than brokerage of real property.

(d) Public Service Members.  Public Service members shall be individuals who are interested in the real estate profession as employees of or affiliated with educational, public utility, governmental, or other similar organizations, but are not engaged in the real estate profession on their own account or in association with an established real estate business.

(e) Honorary Members.  Honorary members shall be individuals not engaged in the real estate profession who have performed notable service for the real estate profession, for the association, or for the public.

(f) Student Members.  Student members shall be individuals who are seeking an undergraduate or graduate degree with a specialization or major in real estate at institutions of higher learning, and who have completed at least two years of college and at least one college-level course in real estate, but are not engaged in the real estate profession on their own account or not associated with an established real estate office.

Article V – Qualification and Election

Section 1. Application

(a) An application for membership shall be made in such manner and form as may be prescribed by the board of directors and made available to anyone requesting it. The application form shall contain among the statements to be signed by the applicant (1) that applicant agrees as a condition to membership to thoroughly familiarize himself/herself with the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, the Constitutions, Bylaws, and Rules and Regulations of the association, the State and National Associations, and if elected a member, will abide by the Constitutions and Bylaws and Rules and Regulations of the association, State and National Associations and, if a REALTOR® member, will abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, including the obligation to arbitrate (or to mediate if required by the association) controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further specified in the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, as from time to time amended, and (2) that applicant consents that the association, through its membership committee or otherwise, may invite and receive information and comment about applicant from any member or other persons, and that applicant agrees that any information and comment furnished to the association by any person in response to the invitation shall be conclusively deemed to be privileged and not form the basis of any action for slander, libel, or defamation of character.  The applicant shall, with the form of application, have access to a copy of the Bylaws, Constitution, Rules and Regulations, and Code of Ethics referred to above. (Amended 11/11)

Section 2. Qualification

Select one of the following two options for Section 2(a), below.

Option 1:  For associations that maintain a license requirement for REALTOR® membership.
(a) An applicant for REALTOR® membership who is a sole proprietor, partner, corporate officer, or branch office manager of a real estate firm shall supply evidence satisfactory to the association, through its membership committee or otherwise, that he/she is actively engaged in the real estate profession, and maintains a current, valid real estate broker's or salesperson's license or is licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property, has a place of business within the state or a state contiguous thereto (unless a secondary member), has no record of recent or pending bankruptcy*, has no record of official sanctions involving unprofessional conduct**, agrees to complete a course of instruction covering the Bylaws and rules and regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and nondiscriminatory written examination thereon, as may be required by the committee, and shall agree that if elected to membership, he/she will abide by such Constitution, Bylaws, rules and regulations, and Code of Ethics. (Amended 1/05)

Option 2:  For associations that do not maintain a license requirement for REALTOR® membership.
(a) An applicant for REALTOR® membership who is a sole proprietor, partner, corporate officer, or branch office manager of a real estate firm shall supply evidence satisfactory to the association, through its membership committee or otherwise, that he/she is actively engaged in the real estate profession, has a place of business within the state or a state contiguous thereto (unless a secondary member), has no record of recent or pending bankruptcy*, has no record of official sanctions involving unprofessional conduct**, agrees to complete a course of instruction covering the Bylaws and rules and regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and nondiscriminatory written examination thereon, as may be required by the committee, and shall agree that if elected to membership, he/she will abide by such Constitution, Bylaws, rules and regulations, and the Code of Ethics. (Amended 1/05)

*No recent or pending bankruptcy is intended to mean that the applicant or any real estate firm in which the applicant is a sole proprietor, general partner, corporate officer, or branch office manager, is not involved in any pending bankruptcy or insolvency proceedings or, has not been adjudged bankrupt in the past three (3) years. If a bankruptcy proceeding as described above exists, membership may not be rejected unless the association establishes that its interests and those of its members and the public could not be adequately protected by requiring that the bankrupt applicant pay cash in advance for association and MLS fees for up to one (1) year from the date that membership is approved or from the date that the applicant is discharged from bankruptcy (whichever is later).  In the event that an existing member initiates bankruptcy proceedings, the member may be placed on a "cash basis" from the date that bankruptcy is initiated until one (1) year from the date that the member has been discharged from bankruptcy.

**No record of official sanctions involving unprofessional conduct is intended to mean that the association may only consider: 

  1. judgments against the applicant within the past three (3) years of violations of (1) civil rights laws, (2) real estate license laws, and (3) or other laws prohibiting unprofessional conduct against the applicant rendered by the courts or other lawful authorities
  2. criminal convictions if (1) the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted, and (2) no more than ten (10) years have elapsed since the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date (Amended 5/07)

NOTE 1:  One or more of the requirements for REALTOR® membership set forth above in Article V, Section 2(a) may be deleted at the association's discretion.  However, associations may NOT adopt membership qualifications more rigorous than specified in the Membership Qualification Criteria for REALTOR® Membership, approved by the Board of Directors of the National Association.

NOTE 2:  Article IV, Section 2, of the NAR Bylaws prohibits Member Boards from knowingly granting REALTOR® or REALTOR-ASSOCIATE® membership to any applicant who has an unfulfilled sanction pending which was imposed by another association of REALTORS® for violation of the Code of Ethics. (Adopted 1/01)

Select one of the following two options for Section 2(b), below.

Option 1:  For associations that maintain a license requirement for REALTOR® membership.

(b) Individuals who are actively engaged in the real estate profession other than as sole proprietors, partners, corporate officers, or branch office managers, in order to qualify for REALTOR® membership, shall at the time of application be associated either as an employee or as an independent contractor with a designated REALTOR® member of the association or a designated REALTOR® member of another association (if a secondary member) and must maintain a current, valid real estate broker's or salesperson's license or be licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property, has no record of official sanctions involving unprofessional conduct*, shall complete a course of instruction covering the Bylaws and rules and regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and nondiscriminatory written examinations thereon as may be required by the membership committee, and shall agree in writing that if elected to membership he/she will abide by such Constitution, Bylaws, rules and regulations, and the Code of Ethics.  (Amended 5/07)  

Option 2:  For associations that do not maintain a license requirement for REALTOR® membership.

(b) Individuals who are actively engaged in the real estate profession other than as sole proprietors, partners, corporate officers, or branch office managers in order to qualify for REALTOR® membership, shall at the time of application, be associated either as an employee or as an independent contractor with a designated REALTOR® member of the association or a designated REALTOR® member of another association (if a secondary member), no record of official sanctions involving unprofessional conduct*, shall complete a course of instruction covering the Bylaws and rules and regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® and shall pass such reasonable and nondiscriminatory written examinations thereon as may be required by the membership committee, and shall agree in writing that if elected to membership he/she will abide by such Constitution, Bylaws, rules and regulations, and the Code of Ethics. (Amended 5/07)

*No record of official sanctions involving unprofessional conduct is intended to mean that the association may only consider: 

  1. judgments against the applicant within the past three (3) years of violations of (1) civil rights laws, (2) real estate license laws, and (3) or other laws prohibiting unprofessional conduct against the applicant rendered by the courts or other lawful authorities
  2. criminal convictions if (1) the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted, and (2) no more than ten years have elapsed since the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date (Adopted 5/07)

The following Section 2(c) may be adopted at the discretion of the local association.

(c) The association will also consider the following in determining an applicant's qualifications for REALTOR® membership:

  1. All final findings of Code of Ethics violations and violations of other membership duties in this or any other REALTOR® association within the past three (3) years

  2. Pending ethics complaints (or hearings)

  3. Unsatisfied discipline pending

  4. Pending arbitration requests (or hearings)

  5. Unpaid arbitration awards or unpaid financial obligations to this or any other REALTOR® association or REALTOR® association MLS

  6. Any misuse of the term REALTOR® or REALTORS® in the name of the applicant’s firm

"Provisional" membership may be granted in instances where ethics complaints or arbitration requests (or hearings) are pending in other associations or where the applicant for membership has unsatisfied discipline pending in another association (except for violations of the Code of Ethics; see Article V, Section 2(a), NOTE 2), provided all other qualifications for membership have been satisfied. Associations may reconsider the membership status of such individuals when all pending ethics and arbitration matters (and related discipline) have been resolved or if such matters are not resolved within six (6) months from the date that provisional membership is approved.  Provisional members shall be considered REALTORS® and shall be subject to all of the same privileges and obligations of REALTOR® membership.  If a member resigns from another association with an ethics complaint or arbitration request pending, the association may condition membership on the applicant's certification that he/she will submit to the pending ethics or arbitration proceeding (in accordance with the established procedures of the association to which the applicant has made application) and will abide by the decision of the hearing panel. (Amended 11/09)

Select one of the following three options for Section 3. Election.

Option 1:  For associations that do not offer provisional membership.

Section 3. Election
The procedure for election to membership shall be as follows.

(a) The membership committee shall determine whether the applicant is applying for the appropriate class of membership.  It shall then give written notice to the REALTOR® members of such application and invite written comment.  If one or more of the REALTOR® members object to the approval of the application, basing such objection on lack of qualification as set forth in these Bylaws, the committee shall invite any objecting member to appear and substantiate his/her objections.  Objections, which are not substantiated, shall be totally disregarded.  The committee may not find objections substantiated without (1) informing the applicant in advance, in writing, of the objections and identifying the objecting Member, and (2) giving the applicant a full opportunity to appear before the committee and establish his/her qualifications.  The committee shall thereafter make a written report of its findings.  The membership committee shall conduct all proceedings with strict attention to the principles of due process and compliance with the Bylaws of the association.

(b) Thereafter, within _____ days, the membership committee shall report its recommendation to the board of directors in writing.  If the recommendation is adverse to the approval of the application, the reasons shall be specifically stated.  If any member of the membership committee submits a dissenting recommendation, it shall also be reported to the board of directors.

(c) The board of directors shall review the qualifications of the applicant and the recommendations of the committee and then vote on the applicant's eligibility for membership.  If the applicant receives a majority vote of the board of directors, he/she shall be declared elected to membership and shall be advised by written notice.

(d) The board of directors may not reject an application without providing the applicant with advance notice of the findings and recommendations of the membership committee, an opportunity to appear before the board of directors, to call witnesses on his/her behalf, to be represented by counsel, and to make such statements as he/she deems relevant. The board of directors may also have counsel present. The board of directors shall require that written minutes be made of any hearing before it or may electronically or mechanically record the proceedings.

(e) If the board of directors determines that the application should be rejected, it shall record its reasons with the secretary/chief staff executive [select one]. If the board of directors believes that denial of membership to the applicant may become the basis of litigation and a claim of damage by the applicant, it may specify that denial shall become effective upon entry in a suit by the association for a declaratory judgment by a court of competent jurisdiction of a final judgment declaring that the rejection violates no rights of the applicant. (Amended 1/05)

Option 2:  For associations that do not offer provisional membership.

Section 3. Election
The procedure for election to membership shall be as follows.

(a) The chief staff executive (or duly authorized designee) shall determine whether the applicant is applying for the appropriate class of membership.

(b) The board of directors shall review the qualifications of the applicant and the recommendations of the chief staff executive (or duly authorized designee) and then vote on the applicant's eligibility for membership. If the applicant receives a majority vote of the board of directors, he/she shall be declared elected to membership and shall be advised by written notice.

(c) The board of directors may not reject an application without providing the applicant with advance notice of the findings, an opportunity to appear before the board of directors, to call witnesses on his/her behalf, to be represented by counsel, and to make such statements as he/she deems relevant.  The board of directors may also have counsel present.  The board of directors shall require that written minutes be made of any hearing before it or may electronically or mechanically record the proceedings.

(d) If the board of directors determines that the application should be rejected, it shall record its reasons with the chief staff executive (or duly authorized designee).  If the board of directors believes that denial of membership to the applicant may become the basis of litigation and a claim of damage by the applicant, it may specify that denial shall become effective upon entry in a suit by the association for a declaratory judgment by a court of competent jurisdiction of a final judgment declaring that the rejection violates no rights of the applicant. (Adopted 1/98, Amended 1/05)

Option 3:  For associations that offer provisional membership.

NOTE:  If the association adopts Option 3 (below) for election to provisional membership, then the language in Section 3(b) (below) concerning the computation of dues must be adopted.

Section 3. Election
The procedure for election to membership shall be as follows.

(a) Applicants for REALTOR® (and REALTOR-ASSOCIATE®, where applicable) membership shall be granted provisional membership immediately upon submission of a completed application form and remittance of applicable association dues and any application fee.  Provisional members shall be considered REALTORS® (or REALTOR-ASSOCIATES®) and shall be subject to all of the same privileges and obligations of membership.  Provisional membership is granted subject to subsequent review of the application by the board of directors.  If the board of directors determines that the individual does not meet all of the qualifications for membership as established in the association's Bylaws, or, if the individual does not satisfy all of the requirements of membership (for example, completion of a mandatory orientation program) within _________ days from the association's receipt of their application, membership may, at the discretion of the board of directors, be terminated.

(b) Dues shall be computed from the date of application and shall be non-refundable unless the association's board of directors terminates the individual's membership in accordance with Subsection (a) above.  In such instances, dues shall be returned to the individual less a prorated amount to cover the number of days that the individual received association services and any application fee.

(c) The board of directors may not terminate any provisional membership without providing the provisional member with advance notice, an opportunity to appear before the board of directors, to call witnesses on his/her behalf, to be represented by counsel, and to make such statements as he/she deems relevant. The board of directors may also have counsel present. The board of directors shall require that written minutes be made of any hearing before it or may electronically or mechanically record the proceedings.

(d) If the board of directors determines that provisional membership should be terminated, it shall record its reasons with the secretary/chief staff executive [select one].  If the board of directors believes that termination of provisional membership may become the basis of litigation and a claim of damage by a provisional member, it may specify that termination shall become effective upon entry in a suit by the association for a declaratory judgment by a court of competent jurisdiction of a final judgment declaring that the termination violates no rights of the individual. (Adopted 1/98, Amended 1/05)

Section 4. New Member Code of Ethics Orientation
Applicants for REALTOR® membership and provisional REALTOR® members (where applicable) shall complete an orientation program on the Code of Ethics of not less than two (2) hours and thirty (30) minutes of instructional time.  This requirement does not apply to applicants for REALTOR® membership or provisional members who have completed comparable orientation in another association, provided that REALTOR® membership has been continuous, or that any break in membership is for one (1) year or less.

Failure to satisfy this requirement within _____ days of the date of application (or, alternatively, the date that provisional membership was granted), will result in denial of the membership application or termination of provisional membership.

NOTE:  Orientation programs must meet the learning objectives and minimum criteria established from time to time by the NATIONAL ASSOCIATION OF REALTORS®. (Adopted 1/01)

Section 5. REALTOR® Code of Ethics Training
Effective January 1, 2001, through December 31, 2004, and for successive four year periods thereafter, each REALTOR® member of the association (with the exception of REALTOR® members granted REALTOR® Emeritus status by the National Association) shall be required to complete quadrennial ethics training of not less than two (2) hours and thirty (30) minutes of instructional time.  This requirement will be satisfied upon presentation of documentation that the member has completed a course of instruction conducted by this or another association, the State Association of REALTORS®, the NATIONAL ASSOCIATION OF REALTORS®, or any other recognized educational institution or provider which meets the learning objectives and minimum criteria established by the NATIONAL ASSOCIATION OF REALTORS® from time to time.  REALTOR® members who have completed training as a requirement of membership in another association and REALTOR® members who have completed the New Member Code of Ethics Orientation during any four (4)-year cycle shall not be required to complete additional ethics training until a new four (4)-year cycle commences.

Failure to satisfy the required periodic ethics training shall be considered a violation of a membership duty.  Failure to meet the requirement for the second (2005 through 2008) cycle and subsequent four (4)-year cycles will result in suspension of membership for the first two months (January and February) of the year following the end of any four (4)-year cycle or until the requirement is met, whichever occurs sooner.  On March 1 of that year, the membership of a member who is still suspended as of that date will be automatically terminated. (Adopted 1/01, Amended 11/08)

Section 6. Status Changes
(a) A REALTOR® who changes the conditions under which he/she holds membership shall be required to provide written notification to the association within _____ days (30 recommended).  A REALTOR® (non-principal) who becomes a principal in the firm with which he/she has been licensed or, alternatively, becomes a principal in a new firm which will be comprised of REALTOR® principals may be required to satisfy any previously unsatisfied membership requirements applicable to REALTOR® (principal) members but shall, during the period of transition from one status of membership to another, be subject to all of the privileges and obligations of a REALTOR® (principal).  If the REALTOR® (non-principal) does not satisfy the requirements established in these Bylaws for the category of membership to which they have transferred within _____ days of the date they advised the association of their change in status, their new membership application will terminate automatically unless otherwise so directed by the board of directors.

A REALTOR® (or REALTOR-ASSOCIATE®, where applicable) who is transferring his/her license from one firm comprised of REALTOR® principals to another firm comprised of REALTOR® principals shall be subject to all of the privileges and obligations of membership during the period of transition.  If the transfer is not completed within _____ days of the date the association is advised of the disaffiliation with the current firm, membership will terminate automatically unless otherwise so directed by the board of directors. (Amended 1/98)

(The board of directors, at its discretion, may waive any qualification which the applicant has already fulfilled in accordance with the association's Bylaws.)

(b) Any application fee related to a change in membership status shall be reduced by an amount equal to any application fee previously paid by the applicant.

(c) Dues shall be prorated from the first day of the month in which the member is notified of election by the board of directors and shall be based on the new membership status for the remainder of the year. (Amended 1/05)

Article VI – Privileges and Obligations

Section 1.  The privileges and obligations of members, in addition to those otherwise provided in these Bylaws, shall be specified in this Article.

Section 2.  Any member of the association may be reprimanded, fined, placed on probation, suspended, or expelled by the board of directors for a violation of these Bylaws and association rules and regulations consistent with these Bylaws, after a hearing as provided in the Code of Ethics and Arbitration Manual of the association.  Although members other than REALTORS® are not subject to the Code of Ethics, nor its enforcement by the association, such members are encouraged to abide by the principles established in the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® and conduct their business and professional practices accordingly.  Further, members other than REALTORS® may, upon recommendation of the membership committee, or upon recommendation by a hearing panel of the professional standards committee, be subject to discipline as described above, for any conduct, which in the opinion of the board of directors, applied on a nondiscriminatory basis, reflects adversely on the terms REALTOR® or REALTORS®, and the real estate industry, or for conduct that is inconsistent with or adverse to the objectives and purposes of the local association, the State Association, and the NATIONAL ASSOCIATION OF REALTORS®.

Section 3.  Any REALTOR® member of the association may be disciplined by the board of directors for violations of the Code of Ethics or other duties of membership, after a hearing as described in the Code of Ethics and Arbitration Manual of the association, provided that the discipline imposed is consistent with the discipline authorized by the Professional Standards Committee of the NATIONAL ASSOCIATION OF REALTORS® as set forth in the Code of Ethics and Arbitration Manual of the National Association.

Section 4.  Resignations of members shall become effective when received in writing by the board of directors, provided, however, that if any member submitting the resignation is indebted to the association for dues, fees, fines, or other assessments of the association or any of its services, departments, divisions, or subsidiaries, the association may condition the right of the resigning member to reapply for membership upon payment in full of all such monies owed.

Section 5.  If a member resigns from the association or otherwise causes membership to terminate with an ethics complaint pending, that board of directors may condition the right of the resigning member to reapply for membership upon the applicant's certification that he/she will submit to the pending ethics proceeding and will abide by the decision of the hearing panel.

(a) If a member resigns or otherwise causes membership to terminate, the duty to submit to arbitration (or to mediation if required by the association) continues in effect even after membership lapses or is terminated, provided that the dispute arose while the former member was a REALTOR®. (Amended 1/00 and 11/11)

Section 6.  REALTOR® Members.  REALTOR® members, whether primary or secondary, in good standing whose financial obligations to the association are paid in full shall be entitled to vote and to hold elective office in the association; may use the terms REALTOR® and REALTORS®, which use shall be subject to the provisions of Article VIII; and have the primary responsibility to safeguard and promote the standards, interests, and welfare of the association and the real estate profession.

Select one of the two following options for Section 6(a).

Option 1:
(a) If a REALTOR® member is a sole proprietor in a firm, a partner in a partnership or an officer in a corporation and is suspended or expelled, the firm, partnership, or corporation shall not use the terms REALTOR® or REALTORS® in connection with its business during the period of suspension, or until readmission to REALTOR® membership, or unless connection with the firm, partnership, or corporation is severed, whichever may apply. The membership of all other principals, partners, or corporate officers shall suspend or terminate during the period of suspension of the disciplined member, or until readmission of the disciplined member, or unless connection of the disciplined member with the firm, partnership, or corporation is severed, whichever may apply. Further, the membership of REALTORS® other than principals who are employed by or affiliated as independent contractors with the disciplined member shall suspend or terminate during the period of suspension of the disciplined member or until readmission of the disciplined member or until connection of the disciplined member with the firm, partnership, or corporation is severed, or unless the REALTOR® member (non-principal) elects to sever his/her connection with the REALTOR® and affiliate with another REALTOR® member in good standing in the association, whichever may apply.

If a REALTOR® member who is other than a principal in a firm, partnership, or corporation is suspended or expelled, the use of the terms REALTOR® or REALTORS® by the firm, partnership, or corporation shall not be affected.*

Option 2:
(a) If a REALTOR® member is a sole proprietor in a firm, a partner in a partnership or an officer in a corporation, and is suspended or expelled, the firm, partnership or corporation shall not use the terms REALTOR® or REALTORS® in connection with its business during the period of suspension, or until readmission to REALTOR® membership, or unless connection with the firm, partnership or corporation is severed, or management control is relinquished, whichever may apply.  The membership of all other principals, partners, or corporate officers shall suspend or terminate during the period of suspension of the disciplined member, or until readmission of the disciplined member or unless connection of the disciplined member with the firm, partnership, or corporation is severed, or unless the REALTOR® who is suspended or expelled removes himself/herself from any form or degree of management control of the firm for the term of the suspension or until readmission to membership, whichever may apply.  Removal of an individual from any form or degree of management control must be certified to the association by the member who is being suspended or expelled and by the individual who is assuming management control, and the signatures of such certification must be notarized. In the event the suspended or expelled member is so certified to have relinquished all form or degree of management control of the firm, the membership of other partners, corporate officers, or other individuals affiliated with the firm shall not be affected, and the firm, partnership or corporation may continue to use the terms REALTOR® and REALTORS® in connection with its business during the period of suspension or until the former member is admitted to membership in the association.  The foregoing is not intended to preclude a suspended or expelled member from functioning as an employee or independent contractor, providing no management control is exercised.  Further, the membership of REALTORS® other than principals who are employed or affiliated as independent contractors with the disciplined member shall suspend or terminate during the period of suspension of the disciplined member or until readmission of the disciplined member, or unless connection of the disciplined member with the firm, partnership, or corporation is severed, or management control is relinquished, or unless the REALTOR® member (non-principal) elects to sever his/her connection with the REALTOR® and affiliate with another REALTOR® member in good standing in the association, whichever may apply.

If a REALTOR® member other than a sole proprietor in a firm, partner in a partnership, or an officer of a corporation is suspended or expelled, the use of the terms REALTOR® or REALTORS® by the firm, partnership or corporation shall not be affected.*

*Concerning Article VI, Section 6(a), associations are advised to select one rule from the two alternatives. The association may wish to consult with legal counsel prior to adoption.

(b) In any action taken against a REALTOR® member for suspension or expulsion under Section 6(a) hereof, notice of such action shall be given to all REALTORS® employed by or affiliated as independent contractors with such REALTOR® member and they shall be advised that the provisions in Article VI, Section 6(a) shall apply.

Section 7. Institute Affiliate Members. Institute Affiliate members shall have rights and privileges and be subject to obligations prescribed by the board of directors consistent with the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS®.

NOTE:  Local associations establish the rights and privileges to be conferred on Institute Affiliate members except that no Institute Affiliate member may be granted the right to use the term REALTOR®, REALTOR-ASSOCIATE®, or the REALTOR® logo; to serve as president of the local association; or to be a participant in the local association’s multiple listing service. (Amended 1/02)

Section 8.  Affiliate Members.  Affiliate members shall have rights and privileges and be subject to obligations prescribed by the board of directors.

Section 9.  Public Service Members.  Public Service members shall have rights and privileges and be subject to obligations prescribed by the board of directors.

Section 10.  Honorary Members.  Honorary membership shall confer only the right to attend meetings and participate in discussions.

Section 11.  Student Members.  Student members shall have rights and privileges and be subject to obligations prescribed by the board of directors.

Section 12.  Certification by REALTOR®.  "Designated" REALTOR® members of the association shall certify to the association during the month of ______________________ on a form provided by the association, a complete listing of all individuals licensed or certified in the REALTOR®'s office(s) and shall designate a primary association for each individual who holds membership.  Designated REALTORS® shall also identify any non-member licensees in the REALTOR®'s office(s) and if designated REALTOR® dues have been paid to another association based on said non-member licensees, the designated REALTOR® shall identify the association to which dues have been remitted.  These declarations shall be used for purposes of calculating dues under Article X, Section 2(a) of the Bylaws.  "Designated" REALTOR® members shall also notify the association of any additional individual(s) licensed or certified with the firm(s) within _____ days of the date of affiliation or severance of the individual.

The following Section 13. Legal Liability Training may be adopted at the discretion of the local association.

Section 13. Legal Liability Training.  Within two (2) years of the date of election to membership, and every two (2) years thereafter, each REALTOR® member of the association shall be required to demonstrate that they have completed a course of instruction on antitrust laws, agency laws, civil rights laws or the REALTORS® Code of Ethics, its interpretation and meaning and/or the procedures related to its enforcement.

This requirement will be considered satisfied upon presentation of evidence that the member has completed an educational program conducted by another Member Board, the State Association of REALTORS®, the NATIONAL ASSOCIATION OF REALTORS® or any of its affiliated Institutes, Societies or Councils, or any other recognized educational institution which, in the opinion of the board of directors, is an adequate substitute for the training programs conducted by the association. 
Failure to satisfy this requirement biennially will result in membership being suspended from the date it otherwise would be renewed until such time that the member provides evidence of completion of the aforementioned educational requirements.

NOTE:  Any education requirement must comply with Interpretation No. 37 of Article I, Section 2, Bylaws, NATIONAL ASSOCIATION OF REALTORS®.

The following Section 14. Harassment may be adopted at the discretion of the local association.

Section 14. Harassment.  Any member of the association may be reprimanded, placed on probation, suspended or expelled for harassment of an association or MLS employee or association officer or director after an investigation in accordance with the procedures of the association. As used in this section, harassment means any verbal or physical conduct including threatening or obscene language, unwelcome sexual advances, stalking, actions including strikes, shoves, kicks, or other similar physical contact, or threats to do the same, or any other conduct with the purpose or effect of unreasonably interfering with an individual's work performance by creating a hostile, intimidating or offensive work environment. The decision of the appropriate disciplinary action to be taken shall be made by the investigatory team comprised of the president, and president-elect and/or vice president and one member of the board of directors selected by the highest ranking officer not named in the complaint, upon consultation with legal counsel for the association. Disciplinary action may include any sanction authorized in the association’s Code of Ethics and Arbitration Manual. If the complaint names the president, president-elect or vice president, they may not participate in the proceedings and shall be replaced by the immediate past president or, alternatively, by another member of the board of directors selected by the highest ranking officer not named in the complaint.

NOTE:  Suggested procedures for processing complaints of harassment are available on line at http://www.REALTOR.org, or from the Member Policy Department. (Amended 5/08)

Article VII – Professional Standards and Arbitration

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  The responsibility of the association and of association members relating to the enforcement of the Code of Ethics, the disciplining of members, and the arbitration of disputes, and the organization and procedures incident thereto shall be governed by the Code of Ethics and Arbitration Manual of the association*, as from time to time amended, which by this reference is made a part of these Bylaws.

*It is recommended that Member Boards adopt the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, as amended from time to time, and as adapted to be consistent with applicable state law.  While Member Boards are not required to adopt the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, verbatim, any procedures adopted must be substantively consistent with the policies set forth in that Manual (e.g., arbitration must be conducted within the parameters established by the Professional Standards Committee of the NATIONAL ASSOCIATION OF REALTORS® and as specified in Section 44 of the Code of Ethics and Arbitration Manual of the National Association, provided the procedures are consistent with state law).  Refer to the option below.

Option for adoption of the National Association's Code of Ethics and Arbitration Manual under Section 1.  If the association opts to comply with state law and adopts and incorporates into its Bylaws the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, as recommended, then the following language for Article VII, Section 1 must be adopted:

Section 1.  The responsibility of the association and of association members relating to the enforcement of the Code of Ethics, the disciplining of members, and the arbitration of disputes, and the organization and procedures incident thereto, shall be governed by the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, as amended from time to time, which is by this reference incorporated into these Bylaws, provided, however, that any provision deemed inconsistent with state law shall be deleted or amended to comply with state law.

Section 2.  It shall be the duty and responsibility of every REALTOR® member of this association to abide by the Constitution and Bylaws and the rules and regulations of the association, the Constitution and Bylaws of the State Association, the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, and to abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, including the duty to arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further defined and in accordance with the procedures set forth in the Code of Ethics and Arbitration Manual of this association, as from time to time amended.

Alternate Section 2 for associations that require members to mediate otherwise-arbitrable disputes:

Section 2.  It shall be the duty and responsibility of every REALTOR® member of this association to abide by the Constitution and Bylaws and the rules and regulations of the association, the Constitution and Bylaws of the State Association, the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, and to abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, including the duty to mediate and arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further defined and in accordance with the procedures set forth in the Code of Ethics and Arbitration Manual of this association, as from time to time amended. (Adopted 11/11)

Optional Section 3. for cooperative enforcement of the Code of Ethics:  Associations must enter into cooperative enforcement agreements, consistent with Professional Standards Policy Statement 40:  Cooperative Enforcement Agreements.  To reflect that the association has entered into such an agreement, Article VII should be amended to include the following, additional section.

Section 3. The responsibility of the association and association members relating to the enforcement of the Code of Ethics, the disciplining of members, the arbitration of disputes, and the organization and procedures incident thereto, shall be consistent with the cooperative professional standards enforcement agreement entered into by the association, which by this reference is made a part of these Bylaws.

Article VIII – Use of the Terms REALTOR® and REALTORS®

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  Use of the terms REALTOR® and REALTORS® by members shall, at all times, be subject to the provisions of the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS® and to the Rules and Regulations prescribed by its board of directors.  The association shall have the authority to control, jointly and in full cooperation with the NATIONAL ASSOCIATION OF REALTORS®, use of the terms within its jurisdiction.   Any misuse of the terms by members is a violation of a membership duty and may subject members to disciplinary action by the board of directors after a hearing as provided for in the association’s Code of Ethics and Arbitration Manual. (Amended 5/06)

Section 2.  REALTOR® members of the association shall have the privilege of using the terms REALTOR® and REALTORS® in connection with their places of business within the state or a state contiguous thereto so long as they remain REALTOR® members in good standing.  No other class of members shall have this privilege. (Amended 1/96)

Section 3. A REALTOR® member who is a principal of a real estate firm, partnership, or corporation may use the terms REALTOR® and REALTORS®, only if all the principals of such firm, partnership, or corporation who are actively engaged in the real estate profession within the state or a state contiguous thereto are REALTOR® members or Institute Affiliate members, as described in Section 1(b) of Article IV.

(a) In the case of a REALTOR® member who is a principal of a real estate firm, partnership, or corporation whose business activity is substantially all commercial, the right to use the term REALTOR® or REALTORS® shall be limited to office locations in which a principal, partner, corporate officer, or branch office manager of the firm, partnership, or corporation holds REALTOR® membership.  If a firm, partnership, or corporation operates additional places of business in which no principal, partner, corporate officer, or branch office manager holds REALTOR® membership, the term REALTOR® or REALTORS® may not be used in any reference to those additional places of business. (Amended 1/01)

Section 4. Institute Affiliate members shall not use the terms REALTOR® or REALTORS®, nor the imprint of the emblem seal of the NATIONAL ASSOCIATION OF REALTORS®.

Article IX – State and National Memberships

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  The association shall be a member of the NATIONAL ASSOCIATION OF REALTORS® and the ________________________________ (state) Association of REALTORS®.  By reason of the association's membership, each REALTOR® member of the Member Board shall be entitled to membership in the NATIONAL ASSOCIATION OF REALTORS® and the ________________________________ (state) Association of REALTORS® without further payment of dues (refer to option below).  The association shall continue as a member of the State and National Associations, unless by a majority vote of all of its REALTOR® members, decision is made to withdraw, in which case the State and National Associations shall be notified at least one month in advance of the date designated for the termination of such membership.

Option for Section 1:  If the State Association does not adopt and incorporate into its Bylaws, dues similar to Article II of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, the second sentence above instead should read:

By reason of the association's Membership, each REALTOR® member of the Member Board shall be entitled to membership in the NATIONAL ASSOCIATION OF REALTORS® without further payment of dues and upon payment of dues as established by the ______________________________ (state) Association of REALTORS® to membership in the State Association.

Section 2.  The association recognizes the exclusive property rights of the NATIONAL ASSOCIATION OF REALTORS® in the terms REALTOR® and REALTORS®.  The association shall discontinue use of the terms in any form in its name, upon ceasing to be a member of the National Association, or upon a determination by the board of directors of the National Association that it has violated the conditions imposed upon the terms.

Section 3. The association adopts the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® and agrees to enforce the Code among its REALTOR® members.  The association and all of its members agree to abide by the Constitution, Bylaws, Rules and Regulations, and policies of the National Association and the __________________________________ (state) Association of REALTORS®.

Article X – Dues and Assessments

Section 1. Application Fee. The board of directors may adopt an application fee for REALTOR® membership in reasonable amount, not exceeding three (3) times the amount of the annual dues for REALTOR® membership, which shall be required to accompany each application for REALTOR® membership and which shall become the property of the association upon final approval of the application. (Amended 1/02)

Section 2. Dues. The annual dues of members shall be as follows.
(a) REALTOR® Members.  The annual dues of each designated REALTOR® member shall be in such amount as established annually by the board of directors, plus an additional amount to be established annually by the board of directors times the number of real estate salespersons and licensed or certified appraisers who (1) are employed by or affiliated as independent contractors, or who are otherwise directly or indirectly licensed with such REALTOR® member, and (2) are not REALTOR® members of any association in the state or a state contiguous thereto or Institute Affiliate members of the association.  In calculating the dues payable to the association by a designated REALTOR® member, non-member licensees as defined in (1) and (2) of this paragraph shall not be included in the computation of dues if the designated REALTOR® has paid dues based on said non-member licensees in another association in the state or a state contiguous thereto, provided the designated REALTOR® notifies the association in writing of the identity of the association to which dues have been remitted.  In the case of a designated REALTOR® member in a firm, partnership, or corporation whose business activity is substantially all commercial, any assessments for non-member licensees shall be limited to licensees affiliated with the designated REALTOR® (as defined in (1) and (2) of this paragraph) in the office where the designated REALTOR® holds membership, and any other offices of the firm located within the jurisdiction of this association. (Amended 1/05)

(1) For the purpose of this section, a REALTOR® member of a Member Board shall be held to be any member who has a place or places of business within the state or a state contiguous thereto and who, as a principal, partner, corporate officer, or branch office manager of a real estate firm, partnership, or corporation, is actively engaged in the real estate profession as defined in Article III, Section 1 of the Constitution of the NATIONAL ASSOCIATION OF REALTORS®.  An individual shall be deemed to be licensed with a REALTOR® if the license of the individual is held by the REALTOR®, or by any broker who is licensed with the REALTOR®, or by any entity in which the REALTOR® has a direct or indirect ownership interest and which is engaged in other aspects of the real estate business (except as provided for in Section 2(a)(1) hereof) provided that such licensee is not otherwise included in the computation of dues payable by the principal, partner, corporate officer, or branch office manager of the entity.

A REALTOR® with a direct or indirect ownership interest in an entity engaged exclusively in soliciting and/or referring clients and customers to the REALTOR® for consideration on a substantially exclusive basis shall annually file with the association on a form approved by the association a list of the licensees affiliated with that entity and shall certify that all of the licensees affiliated with the entity are solely engaged in referring clients and customers and are not engaged in listing, selling, leasing, renting, managing, counseling, or appraising real property.  The individuals disclosed on such form shall not be deemed to be licensed with the REALTOR® filing the form for purposes of this section and shall not be included in calculating the annual dues of the designated REALTOR®.

The exemption for any licensee included on the certification form shall automatically be revoked upon the individual being engaged in real estate licensed activities (listing, selling, leasing, renting, managing, counseling, or appraising real property) other than referrals, and dues for the current fiscal year shall be payable.

Membership dues shall be prorated for any licensee included on a certification form submitted to the association who during the same calendar year applies for REALTOR® or REALTOR-ASSOCIATE® membership in the association.  However, membership dues shall not be prorated if the licensee held REALTOR® or REALTOR-ASSOCIATE® membership during the preceding calendar year. (Amended 11/09)

(b) REALTOR® Members.  The annual dues of REALTOR® members other than the designated REALTOR® shall be as established annually by the board of directors. (Amended 1/05)

(c) Institute Affiliate Members.  The annual dues of each Institute Affiliate member shall be as established in Article II of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS®.

NOTE:  The Institutes, Societies, and Councils of the National Association shall be responsible for collecting and remitting dues to the National Association for Institute Affiliate members ($105).  The National Association shall credit $35 to the account of a local association for each Institute Affiliate Member whose office address is within the assigned territorial jurisdiction of that association, provided, however, if the office location is also within the territorial jurisdiction of a Commercial Overlay Board (COB), the $35 amount will be credited to the COB, unless the Institute Affiliate member directs that the dues be distributed to the other association.  The National Association shall also credit $35 to the account of state associations for each Institute Affiliate member whose office address is located within the territorial jurisdiction of the state association.  Local and state associations may not establish any additional entrance, initiation fees or dues for Institute Affiliate members, but may provide service packages to which Institute Affiliate members may voluntarily subscribe. (Amended 11/2013)

(d) Affiliate Members.  The annual dues of each Affiliate member shall be as established annually by the board of directors. (Amended 1/05)

(e) Public Service Members.  The annual dues of each Public Service member shall be as established annually by the board of directors. (Amended 1/05)

(f) Honorary Members.  Dues payable, if any, shall be at the discretion of the board of directors.
(Amended 1/05)

(g) Student Members.  Dues payable, if any, shall be at the discretion of the board of directors.
(Amended 1/05)

Section 3. Dues Payable. Dues for all members shall be payable annually in advance on the first day of ____________________.  Dues for new members shall be computed from the first day of the month in which a member is notified of election and shall be prorated for the remainder of the year. (Amended 1/05)

Note about provisional membership:  When the association adopts Article V, Section 3. Election, Option 3 for provisional membership, the language in Article X, Section 3 must be revised to state:

Section 3. Dues Payable.  Dues for all members shall be payable annually in advance on the first day of _______.  Dues for new members shall be computed from the date of application and granting of provisional membership. (Adopted 1/98, Amended 1/05)

(a) In the event a sales licensee or licensed or certified appraiser who holds REALTOR® membership is dropped for nonpayment of association dues, and the individual remains with the designated REALTOR®'s firm, the dues obligation of the "designated" REALTOR® (as set forth in Article X, Section 2 [a]) will be increased to reflect the addition of a non-member licensee. Dues shall be calculated from the first day of the current fiscal year and are payable within thirty (30) days of the notice of termination.

Section 4. Nonpayment of Financial Obligations. If dues, fees, fines, or other assessments including amounts owed to the association or the association's multiple listing service are not paid within one (1) month after the due date, the nonpaying Member is subject to suspension at the discretion of the board of directors.  Two (2) months after the due date, membership of the nonpaying member may be terminated at the discretion of the board of directors.  Three (3) months after the due date, membership of the nonpaying Member shall automatically terminate unless within that time the amount due is paid. However, no action shall be taken to suspend or expel a member for nonpayment of disputed amounts until the accuracy of the amount owed has been confirmed by the board of directors.  A former member who has had his/her membership terminated for nonpayment of dues, fees, fines, or other assessments duly levied in accordance with the provisions of these Bylaws or the provisions of other rules and regulations of the association or any of its services, departments, divisions, or subsidiaries may apply for reinstatement in a manner prescribed for new applicants for membership, after making payment in full of all accounts due as of the date of termination.

Section 5.  Deposits and Expenditures.  Deposits and expenditures of funds shall be in accordance with policies established by the board of directors. (Amended 1/05)

Section 6.  Notice of Dues, Fees, Fines, Assessments, and Other Financial Obligations of Members.  All dues, fees, fines, assessments, or other financial obligations to the association or association multiple listing service shall be noticed to the delinquent association member in writing setting forth the amount owed and due date.

Section 7.  The dues of REALTOR® members who are REALTOR® Emeriti (as recognized by the National Association), past presidents and past treasurers of the National Association or recipients of the Distinguished Service Award shall be as determined by the board of directors. (Amended 11/2013)

NOTE:  A Member Board's dues obligation to the National Association is reduced by an amount equal to the amount which the association is assessed for a REALTOR® member, times the number of REALTOR® Emeriti (as recognized by the National Association), past presidents, and past treasurers of the National Association, and recipients of the Distinguished Service Award of the National Association who are REALTOR® members of the association.  The dues obligation of such individuals to the local association should be reduced to reflect the reduction in the association's dues obligation to the National Association.  The association may, at its option, choose to have no dues requirement for such individuals except as may be required to meet the association's obligation to the State Association with respect to such individuals.  Member Boards should determine whether the dues payable by the association to the State Association are reduced with respect to such individuals.  It should be noted that this does not affect a "designated" REALTOR®'s dues obligation to the association with respect to those licensees employed by or affiliated with the "designated" REALTOR® who are not members of the local association. (Amended 11/2013)

Article XI – Officers and Directors

Section 1. Officers. The elected officers of the association shall be:  a president, a vice president, a secretary, and a treasurer. The secretary and treasurer may be the same person. They shall be elected for terms of one year.

Section 2.  Duties of Officers.  The duties of the officers shall be such as their titles, by general usage, would indicate and such as may be assigned to them by the board of directors.  It shall be the particular duty of the secretary/chief staff executive [select one] to keep the records of the association and to carry on all necessary correspondence with the NATIONAL ASSOCIATION OF REALTORS® and the ________________________ (state) Association of REALTORS®. (Amended 1/05)

Section 3. Board of Directors. The governing body of the association shall be a board of directors consisting of the elected officers, the immediate past president of the association, and _____ elected REALTOR® members of the association.  Directors shall be elected to serve for terms of three (3) years, except that at organization, one-third of the elected directors shall be elected for terms of one (1), two (2), and three (3) years, respectively, or for lesser terms as may be necessary to complete the first fiscal year.  Thereafter, as many directors shall be elected each year as are required to fill vacancies. (Amended 1/05)

Optional Subsections (a) and (b):  The association may adopt the following, optional language in addition to the current language (above) for Section 3:

  1. Term Limits.  No director shall serve for more than two (2) consecutive three (3)-year terms. (Adopted 1/05)
  2. No more than _____ REALTORS® from the same real estate firm may simultaneously serve on the Board of Directors. (Adopted 11/09)

Section 4. Election of Officers and Directors.
(a) At least two (2) months before the annual election, a nominating committee of _____ REALTOR® members shall be appointed by the president with the approval of the board of directors.  The nominating committee shall select one candidate for each office and one candidate for each place to be filled on the board of directors.  The report of the nominating committee shall be mailed or, where permitted by state law, electronically transmitted to each member eligible to vote at least three (3) weeks preceding the election.  Additional candidates for the offices to be filled may be placed in nomination by petition signed by at least _____% of the REALTOR® members eligible to vote.  The petition shall be filed with the secretary/chief staff executive [select one] at least two (2) weeks before the election.  The secretary/chief staff executive [select one] shall send notice of such additional nominations to all members eligible to vote before the election. (Amended 1/05)

(b) The election of officers and directors shall take place at the annual meeting or where permitted by state law, electronically. (Amended 1/05)

Optional language for Section 4(b):  The local association may select one of the following two options, to be adopted in addition to the current language (above) for Section 4(b):

Option 1: 
Election shall be by ballot and all votes shall be cast in person.  The ballot shall contain the names of all candidates and the offices for which they are nominated.

Option 2: 
Where permitted by state law, and in accordance with applicable state requirements, election of officers may be conducted by electronic means, in accordance with procedures established by the board of directors. (Adopted 1/05)

(c) The president, with the approval of the board of directors, shall appoint an election committee of __________ REALTOR® members to conduct the election.  In case of a tie vote, the issue shall be determined by lot.

Section 5.  Vacancies.  Vacancies among the officers and the board of directors shall be filled by a simple majority vote of the board of directors until the next annual election.

Section 6.  Removal of Officers and Directors.  In the event that an officer or director is deemed to be incapable of fulfilling the duties for which elected, but will not resign from office voluntarily, the officer or director may be removed from office under the following procedure.

(a) A petition requiring the removal of an officer or director and signed by not less than one-third of the voting membership or a majority of all directors shall be filed with the president, or if the president is the subject of the petition, with the next-ranking officer, and shall specifically set forth the reasons the individual is deemed to be disqualified from further service.

(b) Upon receipt of the petition, and not less than twenty (20) days or more than forty-five (45) days thereafter, a special meeting of the voting membership of the association shall be held, and the sole business of the meeting shall be to consider the charge against the officer or director, and to render a decision on such petition.

(c) The special meeting shall be noticed to all voting members at least ten (10) days prior to the meeting, and shall be conducted by the president of the association unless the president's continued service in office is being considered at the meeting.  In such case, the next-ranking officer will conduct the meeting of the hearing by the members.  Provided a quorum is present, a three-fourths vote of members present and voting shall be required for removal from office.

Section 7.  Chief Staff Executive.  There shall be a chief staff executive, appointed by the board of directors, who shall be the chief administrative officer of the association.  The chief staff executive shall have the authority to hire, supervise, evaluate and terminate other staff, if any, and shall perform such other duties as prescribed by the board of directors. (Adopted 1/05)

Article XII – Meetings

Section 1.  Annual Meetings. The annual meeting of the association shall be held during ____________________ (month/s) of each year, the date, place, and hour to be designated by the board of directors. (Amended 1/05)

Section 2.  Meetings of Directors.  The board of directors shall designate a regular time and place of meetings.  Absence from three (3) regular meetings without an excuse deemed valid by the board of directors shall be construed as resignation. A quorum for the transaction of business shall be a majority of the board of directors, except as may otherwise be required by state law. (Amended 05/2013)

Section 3. Other Meetings. Meetings of the members may be held at other times as the president or the board of directors may determine, or upon the written request of at least __________% of the members eligible to vote.

Section 4.  Notice of Meetings.  Written notice shall be given to every Member entitled to participate in the meeting at least one (1) week preceding all meetings. If a special meeting is called, it shall be accompanied by a statement of the purpose of the meeting.

Section 5.  Quorum for Membership Meetings A quorum for the transaction of business at general and/or special meetings of the membership shall consist of _____% of the members eligible to vote, except as may otherwise be required by state law. (Amended 05/2013)

Section 6.  Electronic Transaction of Business.  To the fullest extent permitted by law, the board of directors or membership may conduct business by electronic means. (Adopted 1/05)

Section 7.  Action without Meeting.  Unless specifically prohibited by the articles of incorporation, any action required or permitted to be taken at a meeting of the board of directors may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the directors.   The consent shall be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signature of one or more directors.  All the approvals evidencing the consent shall be delivered to the secretary/chief staff executive [select one] to be filed in the corporate records.  The action taken shall be effective when all the directors have approved the consent unless the consent specifies a different effective date. (Adopted 1/05)

Article XIII – Committees

Section 1.  Standing Committees. The president shall appoint from among the REALTOR® members, subject to confirmation by the board of directors, the following standing committees:

  • professional standards
  • grievance
  • multiple listing (when the MLS is a committee)

NOTE:  Other standing committees which may be listed under this section include, but are not limited to, finance, legislative, public relations, membership, REALTOR® protection, education, equal opportunity, RPAC fundraising, international, commercial, affordable housing, community service, REALTOR®-of-the-year, etc.). (Amended 1/05)

Section 2.  Special Committees.  The president shall appoint, subject to confirmation by the board of directors, special committees as deemed necessary.

Section 3.  Organization. All committees shall be of such size and shall have duties, functions, and powers as assigned by the president or the board of directors except as otherwise provided in these Bylaws.

Section 4.  President. The president shall be an ex-officio member of all standing committees and shall be notified of their meetings.

Section 5. Action without Meeting.  Any committee may act by unanimous consent in writing without a meeting.  The consent shall be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signature of one or more of the members of the committee. (Adopted 1/05)

Section 6. Attendance by Telephone.  Members of a committee may participate in any meeting through the use of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other.  Such participation shall be at the discretion of the president and shall constitute presence at the meeting. (Adopted 1/05)

Article XIV – Fiscal and Elective Year

Section 1.  The fiscal year of the association shall be _______________ to _______________. (Amended 1/05)

Section 2.  The elective year of the association shall be _______________ to _______________. (Adopted 1/05)

Article XV – Rules of Order

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  Robert's Rules of Order, latest edition, shall be recognized as the authority governing the meetings of the association, its board of directors, and committees, in all instances wherein its provisions do not conflict with these Bylaws.

Article XVI – Amendments

Section 1. These Bylaws may be amended by a majority vote of the members present and qualified to vote at any meeting at which a quorum is present, provided the substance of such proposed amendment or amendments shall be plainly stated in the call for the meeting.

Optional Subsection (a):  The association may adopt the following, optional language related to amending the Bylaws in addition to the current language (above) for Section 1.  Prior to adopting this language, an association should consult with legal counsel to determine if this procedure is consistent with applicable state law.

(a) When Bylaws amendments are mandated by NAR policy, these Bylaws may be automatically amended to reflect the mandate as of the effective date of the mandatory policy authorized by the NATIONAL ASSOCIATION OF REALTORS®.  The association shall provide notice of that change in a regular or special membership communication. (Adopted 1/05)

Optional language to be adopted in place of Section 1:  The association may adopt the following language in place of the original language for Section 1 (first paragraph, above) but, if adopted, the optional Subsection (a) does not apply and may not be adopted.  Prior to adopting this language, an association should consult with legal counsel to determine if this procedure is consistent with applicable state law.

Section 1.  These Bylaws may be amended by the majority vote of the members present and qualified to vote at any meeting at which a quorum is present, provided the substance of such proposed amendment or amendments shall be plainly stated in the call for the meeting, except that the board of directors may, at any regular or special meeting of the board of directors at which a quorum is present, approve amendments to the Bylaws which are mandated by NAR policy.

Section 2.  Notice of all meetings at which amendments are to be considered shall be mailed to every member eligible to vote at least one (1) week prior to the meeting.

Section 3.  Amendments to these Bylaws affecting the admission or qualification of REALTOR® and Institute Affiliate members, the use of the terms REALTOR® and REALTORS®, or any alteration in the territorial jurisdiction of the association shall become effective upon their approval as authorized by the board of directors of the NATIONAL ASSOCIATION OF REALTORS®.

Article XVII – Dissolution

(Requires verbatim adoption by Member Boards – Selected Uniform Provision)

Section 1.  Upon the dissolution of this association, the board of directors, after providing for the payment of all obligations, shall distribute any remaining assets to the _____________________________ (state) Association of REALTORS® or, within its discretion, to any other non-profit tax exempt organization. (Amended 1/05)

Article XVIII – Multiple Listing

NOTE:  Select one of the two options below for Article XVIII, depending on the structure of the MLS (i.e., committee or a separate corporation, wholly-owned by the association or associations of REALTORS®).   If the association does not own and operate an MLS, then Article XVIII should not be adopted.  If the association owns and operates a commercial information exchange (CIE), then any related bylaws and rules and regulations should be submitted to the National Association for review.

Option 1:  Multiple Listing Service Operated as a Committee of the Association

Section 1.  Authority. The association of REALTORS® shall maintain for the use of its members a Multiple Listing Service which shall be subject to the Bylaws of the association of REALTORS® and such rules and regulations as may be hereinafter adopted.

Section 2.  Purpose.  A multiple listing service is a means by which authorized participants make blanket unilateral offers of compensation to other participants (acting as subagents, buyer agents, or in other agency or nonagency capacities defined by law); by which cooperation among participants is enhanced; by which information is accumulated and disseminated to enable authorized participants to prepare appraisals, analyses, and other valuations of real property for bona fide clients and customers; by which participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information so participants may better serve their clients and the public.  Entitlement to compensation is determined by the cooperating broker's performance as a procuring cause of the sale (or lease). (Amended 11/04)

Section 3.  Participation.  Any REALTOR® of this or any other association who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, without further qualification, except as otherwise stipulated in these Bylaws, shall be eligible to participate in multiple listing upon agreeing in writing to conform to the rules and regulations thereof and to pay the costs incidental thereto.*  However, under no circumstances is any individual or firm, regardless of membership status, entitled to multiple listing service “membership” or “participation” unless they hold a current, valid real estate broker’s license and offer or accept compensation to and from other participants or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.**  Use of information developed by or published by an association multiple listing service is strictly limited to the activities authorized under a participant’s licensure(s) or certification and unauthorized uses are prohibited.  Further, none of the foregoing is intended to convey “participation” or “membership” or any right of access to information developed by or published by an association multiple listing service where access to such information is prohibited by law. (Amended 11/08)

Mere possession of a broker's license is not sufficient to qualify for MLS participation.  Rather, the requirement that an individual or firm offers or accepts cooperation and compensation means that the participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS.  “Actively” means on a continual and ongoing basis during the operation of the participant's real estate business.  The ‘'actively” requirement is not intended to preclude MLS participation by a participant or potential participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions.  Similarly, the requirement is not intended to deny MLS participation to a participant or potential participant who has not achieved a minimum number of transactions despite good faith efforts.  Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law. (Adopted 11/08)

The key is that the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation with respect to properties of the type that are listed on the MLS in which participation is sought.  This requirement does not permit an MLS to deny participation to a participant or potential participant that operates a “Virtual Office Website” (VOW) (including a VOW that the participant uses to refer customers to other participants) if the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation.  An MLS may evaluate whether a participant or potential participant actively endeavors during the operation of its real estate business to offer or accept cooperation and compensation only if the MLS has a reasonable basis to believe that the participant or potential participant is in fact not doing so.  The membership requirement shall be applied in a nondiscriminatory manner to all participants and potential participants. (Adopted 11/08)

*Optional qualification, may be adopted at local association's discretion: 

Any applicant for MLS participation and any licensee (including licensed or certified appraisers) affiliated with an MLS participant who has access to and use of MLS-generated information shall complete an orientation program of no more than eight (8) classroom hours devoted to the MLS Rules and Regulations and computer training related to MLS information entry and retrieval within thirty (30) days after access has been provided.

Participants and subscribers may be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any twelve (12) month period when deemed necessary by the MLS to familiarize participants and subscribers with system changes or enhancement and/or changes to MLS rules or policies.  Participants and subscribers must be given the opportunity to complete any mandated additional training remotely. (Amended 11/09)

NOTE:  Associations are not required to establish prerequisites for MLS participation beyond holding REALTOR® (principal) membership in an association. However, if the association wishes to establish these requirements for MLS participation or for access to MLS-generated information, the requirement of attendance at an orientation program is the most rigorous requirement that may be established.

**Generally, associations of REALTORS®, when there is more than one principal in a real estate firm, define the chief principal officer of the firm as the MLS "participant".  If each principal is defined as a "participant," then each shall have a separate vote on MLS matters.  Brokers or salespersons other than principals are not considered "participants" in the service, but have access to and use of the service through the principal(s) with whom they are affiliated.

“Open MLS”:   At the discretion of the association, the following provision may be adopted under Section 3. Participation to establish nonmember participation rights.

(a) A nonmember applicant for MLS participation who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, shall supply evidence satisfactory to the membership committee that he/she has no record of recent or pending bankruptcy; has no record of official sanctions involving unprofessional conduct; agrees to complete a course of instruction (if any) covering the MLS Rules and Regulations and computer training related to MLS information entry and retrieval, and shall pass such reasonable and non-discriminatory written examination thereon as may be required by the MLS; and shall agree that if elected as a participant, he/she will abide by such rules and regulations and pay the MLS fees and dues, including the nonmember differential (if any), as from time to time established.  Under no circumstances is any individual or firm entitled to MLS participation or membership unless they hold a current, valid real estate broker's license and offer or accept compensation to and from other participants, or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.  Use of information developed by or published by an association multiple listing service is strictly limited to the activities authorized under a participant's licensure(s) or certification and unauthorized uses are prohibited.  Further, none of the foregoing is intended to convey participation or membership or any right of access to information developed by or published by an association multiple listing service where access to such information is prohibited by law. (Amended 11/08)

Mere possession of a broker's license is not sufficient to qualify for MLS participation.  Rather, the requirement that an individual or firm offers or accepts cooperation and compensation means that the participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS.  “Actively” means on a continual and ongoing basis during the operation of the participant's real estate business.  The ‘'actively” requirement is not intended to preclude MLS participation by a participant or potential participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions.  Similarly, the requirement is not intended to deny MLS participation to a participant or potential participant who has not achieved a minimum number of transactions despite good faith efforts.  Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law. (Adopted 11/08)

The key is that the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation with respect to properties of the type that are listed on the MLS in which participation is sought.  This requirement does not permit an MLS to deny participation to a participant or potential participant that operates a “Virtual Office Website” (VOW) (including a VOW that the participant uses to refer customers to other participants) if the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation.  An MLS may evaluate whether a participant or potential participant actively endeavors during the operation of its real estate business to offer or accept cooperation and compensation only if the MLS has a reasonable basis to believe that the participant or potential participant is in fact not doing so.  The membership requirement shall be applied in a nondiscriminatory manner to all participants and potential participants. (Adopted 11/08)

NOTE 1:  The requirements of (1) no record of recent or pending bankruptcy; (2) no record of official sanctions involving unprofessional conduct; and (3) completion of a course of instruction on the MLS rules and regulations and computer training related to MLS information entry and retrieval may be deleted from this section at the option of each association.  In states where law requires non-association members be admitted to the MLS of an association of REALTORS®, any limitations or restrictions imposed on participation or membership shall be no more stringent than permissible under the National Association's Membership Qualification Criteria.  However, in states where non-association member access to the MLS is not a requirement of state law, associations may, at their discretion, establish additional qualifications for non-association member participation and membership in the MLS.

NOTE 2:  An association may also choose to have the membership committee consider the following when determining a nonmember applicant's qualifications for MLS participation or membership:

  1. All final findings of Code of Ethics violations and violations of other membership duties in this or any other REALTOR® association within the past three (3) years
  2. Pending ethics complaints (or hearings)
  3. Unsatisfied discipline pending
  4. Pending arbitration requests (or hearings)
  5. Unpaid arbitration awards or unpaid financial obligations to this or any other REALTOR® association or REALTOR® association MLS (Amended 11/2009)

Section 4. Supervision. The activity shall be operated under the supervision of the multiple listing committee, in accordance with the rules and regulations, subject to approval of the board of directors of the association of REALTORS®.

Section 5. Appointment of Committee. The president shall appoint, subject to the confirmation of the board of directors, a multiple listing committee of _____ REALTORS® members.  All members of the committee shall be participants in multiple listing except, at the option of the local association, REALTORS® (or REALTOR-ASSOCIATE®s, where applicable) affiliated with participants may be appointed to serve in such numbers as determined by the local association.  The committee members so named shall serve two-year, staggered terms.*  The committee shall select its chairperson from among the members thereof.  (The chairperson may be designated by the president.)

*Associations have the option to establish a longer or shorter term for service to the committee and need not provide for staggered terms for committee appointments.

Section 6.  Vacancies. Vacancies in unexpired terms shall be filled as in the case of original appointees.

Section 7.  Attendance. Any committee member who fails to attend three (3) consecutive regular or special meetings of the committee, without excuse acceptable to the chairperson of the committee, shall be deemed to have resigned from the committee and the vacancy shall be filled as herein provided for original appointees.

Section 8.  Subscribers. Subscribers (or users) of the MLS include non-principal brokers, sales associates, and licensed and certified appraisers affiliated with participants.

Optional language:  The association may adopt the following, optional language related to subscribers, in addition to the current language (above) for Section 8:

Subscribers also include affiliated unlicensed administrative and clerical staff, personal assistants, and individuals seeking licensure or certification as real estate appraisers who are under the direct supervision of an MLS participant or the participant's licensed designee.

Option 2:  Article XVIII – Multiple Listing (Alternate), for a Multiple Listing Service Operated as a Separate Corporation Wholly-Owned by the Association

Section 1.  Authority. The association of REALTORS® shall maintain for the use of its members a multiple listing service which shall be a lawful corporation of the state of ____________________, all the stock of which shall be owned by the association of REALTORS®.

Section 2.  Purpose.  A multiple listing service is a means by which authorized participants make blanket unilateral offers of compensation to other participants (acting as subagents, buyer agents, or in other agency or nonagency capacities defined by law); by which cooperation among participants is enhanced; by which information is accumulated and disseminated to enable authorized participants to prepare appraisals, analyses, and other valuations of real property for bona fide clients and customers; by which participants engaging in real estate appraisal contribute to common databases; and is a facility for the orderly correlation and dissemination of listing information so participants may better serve their clients and the public.  Entitlement to compensation is determined by the cooperating broker's performance as a procuring cause of the sale (or lease). (Amended 11/04)

Section 3.  Governing Documents. The board of directors shall cause any multiple listing service established by it pursuant to this article to conform its Corporate Charter, Constitution, Bylaws, rules, regulations, and policies, practices, and procedures at all times to the Constitution, Bylaws, rules, regulations, and policies of the NATIONAL ASSOCIATION OF REALTORS®.

Section 4.  Participation.  Any REALTOR® of this or any other association who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, without further qualification, except as otherwise stipulated in these Bylaws, shall be eligible to participate in multiple listing upon agreeing in writing to conform to the rules and regulations thereof and to pay the costs incidental thereto.*  However, under no circumstances is any individual or firm, regardless of membership status, entitled to multiple listing service “membership” or “participation” unless they hold a current, valid real estate broker’s license and offer or accept compensation to and from other participants or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.**  Use of information developed by or published by an association multiple listing service is strictly limited to the activities authorized under a participant’s licensure(s) or certification and unauthorized uses are prohibited.  Further, none of the foregoing is intended to convey “participation” or “membership” or any right of access to information developed by or published by an association multiple listing service where access to such information is prohibited by law. (Amended 11/08)

Mere possession of a broker's license is not sufficient to qualify for MLS participation.  Rather, the requirement that an individual or firm offers or accepts cooperation and compensation means that the participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS.  “Actively” means on a continual and ongoing basis during the operation of the participant's real estate business.  The ‘'actively” requirement is not intended to preclude MLS participation by a participant or potential participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions.  Similarly, the requirement is not intended to deny MLS participation to a participant or potential participant who has not achieved a minimum number of transactions despite good faith efforts.  Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law. (Adopted 11/08)

The key is that the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation with respect to properties of the type that are listed on the MLS in which participation is sought.  This requirement does not permit an MLS to deny participation to a participant or potential participant that operates a “Virtual Office Website” (VOW) (including a VOW that the participant uses to refer customers to other participants) if the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation.  An MLS may evaluate whether a participant or potential participant actively endeavors during the operation of its real estate business to offer or accept cooperation and compensation only if the MLS has a reasonable basis to believe that the participant or potential participant is in fact not doing so.  The membership requirement shall be applied in a nondiscriminatory manner to all participants and potential participants. (Adopted 11/08)

*Optional qualification, may be adopted at the local association's discretion:

Any applicant for MLS participation and any license (including licensed or certified appraisers) affiliated with an MLS participant who has access to and use of MLS-generated information shall complete an orientation program of no more than eight (8) classroom hours devoted to the MLS rules and regulations and computer training related to MLS information entry and retrieval within thirty (30) days after access has been provided.

Participants and subscribers may be required, at the discretion of the MLS, to complete additional training of not more than four (4) classroom hours in any twelve (12) month period when deemed necessary by the MLS to familiarize participants and subscribers with system changes or enhancement and/or changes to MLS rules or policies.  Participants and subscribers must be given the opportunity to complete any mandated additional training remotely. (Amended 11/09)

NOTE:  Associations are not required to establish prerequisites for MLS participation beyond holding REALTOR® (principal) membership in an association.  However, if the association wishes to establish these requirements for MLS participation or for access to MLS-generated information, the requirement of attendance at an orientation program is the most rigorous requirement that may be established.

**Generally, associations of REALTORS®, when there is more than one principal in a real estate firm, define the chief principal officer of the firm as the MLS "participant".  If each principal is defined as a "participant", then each shall have a separate vote on MLS matters.  Brokers or salespersons other than principals are not considered "participants" in the service, but have access to and use of the service through the principal(s) with whom they are affiliated.

“Open MLS”:   At the discretion of the association, the following provision may be adopted under Section 4. Participation to establish nonmember participation rights.

(a) A nonmember applicant for MLS participation who is a principal, partner, corporate officer, or branch office manager acting on behalf of a principal, shall supply evidence satisfactory to the membership committee that he/she has no record of recent or pending bankruptcy; has no record of official sanctions involving unprofessional conduct; agrees to complete a course of instruction (if any) covering the MLS rules and regulations and computer training related to MLS information entry and retrieval, and shall pass such reasonable and non-discriminatory written examination thereon as may be required by the MLS; and shall agree that if elected as a participant, he/she will abide by such rules and regulations and pay the MLS fees and dues, including the nonmember differential (if any), as from time to time established.  Under no circumstances is any individual or firm entitled to MLS participation or membership unless they hold a current, valid real estate broker's license and offer or accept compensation to and from other participants, or are licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property.  Use of information developed by or published by an association multiple listing service is strictly limited to the activities authorized under a participant's licensure(s) or certification and unauthorized uses are prohibited.  Further, none of the foregoing is intended to convey participation or membership or any right of access to information developed by or published by an association multiple listing service where access to such information is prohibited by law. (Amended 11/08)

Mere possession of a broker's license is not sufficient to qualify for MLS participation. Rather, the requirement that an individual or firm offers or accepts cooperation and compensation means that the participant actively endeavors during the operation of its real estate business to list real property of the type listed on the MLS and/or to accept offers of cooperation and compensation made by listing brokers or agents in the MLS.  “Actively” means on a continual and ongoing basis during the operation of the participant's real estate business.  The ‘'actively” requirement is not intended to preclude MLS participation by a participant or potential participant that operates a real estate business on a part-time, seasonal, or similarly time-limited basis or that has its business interrupted by periods of relative inactivity occasioned by market conditions.  Similarly, the requirement is not intended to deny MLS participation to a participant or potential participant who has not achieved a minimum number of transactions despite good faith efforts.  Nor is it intended to permit an MLS to deny participation based on the level of service provided by the participant or potential participant as long as the level of service satisfies state law. (Adopted 11/08)

The key is that the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation with respect to properties of the type that are listed on the MLS in which participation is sought.  This requirement does not permit an MLS to deny participation to a participant or potential participant that operates a “Virtual Office Website” (VOW) (including a VOW that the participant uses to refer customers to other participants) if the participant or potential participant actively endeavors to make or accept offers of cooperation and compensation.  An MLS may evaluate whether a participant or potential participant actively endeavors during the operation of its real estate business to offer or accept cooperation and compensation only if the MLS has a reasonable basis to believe that the participant or potential participant is in fact not doing so.  The membership requirement shall be applied in a nondiscriminatory manner to all participants and potential participants. (Adopted 11/08)

NOTE 1:  The requirements of (1) no record of recent or pending bankruptcy; (2) no record of official sanctions involving unprofessional conduct; and (3) completion of a course of instruction on the MLS rules and regulations and computer training related to MLS information entry and retrieval may be deleted from this section at the option of each association.  In states where law requires non-association members be admitted to the MLS of an association of REALTORS®, any limitations or restrictions imposed on participation or membership shall be no more stringent than permissible under the National Association's Membership Qualification Criteria.  However, in states where non-association member access to the MLS is not a requirement of state law, associations may, at their discretion, establish additional qualifications for non-association member participation and membership in the MLS.

NOTE 2:  An association may also choose to have the membership committee consider the following when determining a nonmember applicant's qualifications for MLS participation or membership:

  1. All final findings of Code of Ethics violations and violations of other membership duties in this or any other REALTOR® association within the past three (3) years
  2. Pending ethics complaints (or hearings)
  3. Unsatisfied discipline pending
  4. Pending arbitration requests (or hearings)
  5. Unpaid arbitration awards or unpaid financial obligations to this or any other REALTOR® association or REALTOR® association MLS (Amended 11/2009)

Section 5.  Subscribers. Subscribers (or users) of the MLS include non-principal brokers, sales associates, and licensed and certified appraisers affiliated with participants.

Optional language:  The association may adopt the following, optional language related to subscribers, in addition to the current language (above) for Section 5:

Subscribers also include affiliated unlicensed administrative and clerical staff, personal assistants, and individuals seeking licensure or certification as real estate appraisers who are under the direct supervision of an MLS participant or the participant's licensed designee.

Amended 12/31/2011

 


2014 Model Bylaws Addendum for Local Member Boards with REALTOR-ASSOCIATE® Membership

This addendum is designed for use as a supplement to the Model Bylaws for Local Member Boards with All-REALTOR® Membership to establish suitable bylaws for local associations with both REALTOR® and REALTOR-ASSOCIATE® memberships.

The addendum is separated into two parts:

Part 1:  Additional Policies – Policies currently not in the All-REALTOR® Model Bylaws.

Part 2:  Bylaw Revisions – Revisions to the existing language in the All-REALTOR® Model Bylaws for Local Member Boards.

Part 1:  Additional Policies

Associations that offer REALTOR-ASSOCIATE® membership must add the following provisions to the language in the All-REALTOR® Model Bylaws for Local Member Boards. The article and section numbers reflect those of the NAR Model; all existing sections must be renumbered accordingly.

Article IV — Membership

Section 1.

(b) REALTOR-ASSOCIATE® Members.  REALTOR-ASSOCIATE® members shall be individuals who are engaged in the real estate profession other than as principals, partners, corporate officers or branch office managers and do not qualify for or seek REALTOR® membership as described in Article V, Section 2 (b).  Salespersons and other associates of a real estate office shall be eligible for REALTOR-ASSOCIATE® Membership if they are employed by, or affiliated as an independent contractor with, a REALTOR® member as provided in this Article.  REALTOR-ASSOCIATE® members may transfer to REALTOR® Membership by meeting the requirements for such membership set out in Article V.

(1) Primary and secondary REALTOR-ASSOCIATE® Members.  An individual is a primary member if the association pays state and National dues based on such member.  An individual is a secondary member if state and National dues are remitted through another association.  One of the principals in a real estate firm must be a designated REALTOR® member of the association in order for licensees affiliated with the firm to select the association as their "primary" association.

Article V — Qualification and Election

Section 2. Qualification

Select one of the following two options for Section 2(c).

Option 1:  For associations that maintain a license requirement for REALTOR-ASSOCIATE® Membership

(c) An applicant for REALTOR-ASSOCIATE® membership shall supply evidence to the membership committee that he/she is actively engaged in the real estate profession and is employed by a REALTOR® or affiliated with a REALTOR® as an independent contractor, must maintain a current valid real estate broker's or salesperson's license or be licensed or certified by an appropriate state regulatory agency to engage in the appraisal of real property, has no record of official sanctions involving unprofessional conduct*, shall complete a course of instruction covering the Bylaws and Rules and Regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and nondiscriminatory written examinations thereon as may be required by the committee, and shall agree in writing that if elected to membership, he/she will abide by such Constitution, Bylaws, Rules and Regulations, and the Code of Ethics. (Amended 5/06)

Option 2:  For associations that do not maintain a license requirement for REALTOR-ASSOCIATE® membership

(c) An applicant for REALTOR-ASSOCIATE® membership shall supply evidence to the Membership Committee that he/she is actively engaged in the real estate profession and is employed by a REALTOR® or affiliated with a REALTOR® as an independent contractor, has no record of official sanctions involving unprofessional conduct*, shall complete a course of instruction covering the Bylaws and Rules and Regulations of the association, the Bylaws of the State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and nondiscriminatory written examinations thereon as may be required by the committee, and shall agree in writing that if elected to membership, he/she will abide by such Constitution, Bylaws, Rules and Regulations, and the Code of Ethics. (Amended 5/06)

*No record of official sanctions involving unprofessional conduct is intended to mean that the association may only consider:

  1. judgments against the applicant within the past three (3) years of violations of (1) civil rights laws, (2) real estate license laws, and (3) or other laws prohibiting unprofessional conduct against the applicant rendered by the courts or other lawful authorities. 
  2. criminal convictions if (1) the crime was punishable by death or imprisonment in excess of one year under the law under which the applicant was convicted, and (2) no more than ten years have elapsed since the date of the conviction or the release of the applicant from the confinement imposed for that conviction, whichever is the later date.  (Amended 5/06)

Article VI — Privileges and Obligations

Section 7. REALTOR-ASSOCIATE® Members.

(a) REALTOR-ASSOCIATE® members shall have the right to use the term REALTOR-ASSOCIATE® subject to Article VIII of these Bylaws, and shall have all the rights and privileges of membership in the association except the right to use the terms REALTOR® and REALTORS®, to vote, or to hold elective office in the association.

(Associations may, at their option, authorize REALTOR-ASSOCIATE® members to vote or to hold one or more of the association elective offices.)

(b) REALTOR-ASSOCIATE® members shall promote the interests and welfare of the association and the real estate profession.

(c) REALTOR-ASSOCIATE® members shall maintain and promote the same high standards of ethical conduct in their real estate business as is required of REALTOR® members.

(d) Select one of the two following options for Section 7(d).

Option 1
(d) The membership of a REALTOR-ASSOCIATE® member shall suspend or terminate during the period of suspension or termination of a REALTOR® member (principal) of the firm, partnership, or corporation with which he/she is associated, or until readmission of the disciplined REALTOR® member, or unless connection of the disciplined member with the firm, partnership, or corporation is severed, or unless the REALTOR-ASSOCIATE® member elects to sever his connection with the REALTOR® and affiliate with another REALTOR® member in good standing in the association, whichever may apply.*

Option 2
(d) The membership of a REALTOR-ASSOCIATE® member shall suspend or terminate during the period of suspension or termination of a REALTOR® member (principal) of the firm, partnership, or corporation with which he/she is associated, or until readmission of the disciplined REALTOR® member, or unless connection of the disciplined member with the firm, partnership, or corporation is severed, or management control is relinquished, or unless the REALTOR-ASSOCIATE® member elects to sever his connection with the REALTOR® and affiliate with another REALTOR® member in good standing in the association, whichever may apply.*

*Concerning Article VI, Section 7(d), the association should adopt one rule from the above two alternatives, consistent with the association's election in Article VI, Section 6(a).

Article VIII — Use of the Terms REALTOR®, REALTORS®, and REALTOR-ASSOCIATE®

Section 4.

REALTOR-ASSOCIATE® members of the association shall have the right to use the term REALTOR-ASSOCIATE® so long as they remain REALTOR-ASSOCIATE® members in good standing and the REALTOR® member with whom they are associated as independent contractors or by whom they are employed is also a REALTOR® member in good standing.

Article X — Dues and Assessments

Section 2. Dues

(c) REALTOR-ASSOCIATE® Members. The annual dues of each REALTOR-ASSOCIATE® member shall be as established annually by the board of directors.

Part 2:  Bylaw Revisions

Associations that offer REALTOR-ASSOCIATE® membership must make the following revisions to the All-REALTOR® Model Bylaws (strikethroughs identify deletions and underscoring identifies additional language).

Article II — Objectives

Section 6.

To designate, for the benefit of the public, those individuals authorized to use the terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE® as licensed, prescribed, and controlled by the NATIONAL ASSOCIATION OF REALTORS®.

Article III — Jurisdiction

Section 2.

Territorial jurisdiction is defined to mean:

(a) The right and duty to control the use of the terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE® subject to the conditions set forth in these Bylaws and those of the NATIONAL ASSOCIATION OF REALTORS®, in return for which the association agrees to protect and safeguard the property rights of the National Association in the terms.

Article IV — Membership

Section 1.

There shall be six classes of members as follows . . .

(d) Affiliate Members. Affiliate members shall be real estate owners and other individuals or firms who, while not engaged in the real estate profession as defined in paragraphs (a) or, (b) or (c) of this Section, have interests requiring information concerning real estate, and are in sympathy with the objectives of the association.

The following may be adopted at the discretion of the local association (provided it is not in conflict with the state association's bylaws):

Affiliate membership shall also be granted to individuals licensed or certified to engage in real estate practice who, if otherwise eligible, do not elect to hold REALTOR® or REALTOR-ASSOCIATE® membership in the association, provided the applicant is engaged exclusively in a specialty of the real estate business other than brokerage of real property.

Article V — Qualification and Election

Section 1. Application.

(a) An application for membership shall be made in such manner and form as may be prescribed by the board of directors and made available to anyone requesting it. The application form shall contain among the statements to be signed by the applicant (1) that applicant agrees as a condition to membership to thoroughly familiarize themselves with the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, the Constitutions, Bylaws, and Rules and Regulations of the association, State and National Associations, and if elected a member, will abide by the Constitutions and Bylaws and the Rules and Regulations of the association, State and National Associations, and if a REALTOR® or REALTOR-ASSOCIATE® member, will abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® including the obligation to arbitrate (or to mediate if required by the association) controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further specified in the Code of Ethics and Arbitration Manual of the NATIONAL ASSOCIATION OF REALTORS®, as from time to time amended, and (2) that applicant consents that the association, through its membership committee or otherwise, may invite and receive information and comment about applicant from any member or other persons, and that applicant agrees that any information and comment furnished to the association by any person in response to the invitation shall be conclusively deemed to be privileged and not form the basis of any action for slander, libel, or defamation of character. The applicant shall, with the form of application, have access to a copy of the Bylaws, Constitution, Rules and Regulations, and Code of Ethics referred to above. (Amended 11/11)

Article V — Qualification and Election

Section 2. Qualification

The following section may be adopted at the discretion of the local association.

(d) The association will also consider the following in determining an applicant's qualifications for REALTOR® and REALTOR-ASSOCIATE® membership:

  1. All final findings of Code of Ethics violations and violations of other membership duties in this or any other REALTOR® association within the past three (3) years
  2. Pending ethics complaints (or hearings)
  3. Unsatisfied discipline pending
  4. Pending arbitration requests (or hearings)
  5. Unpaid arbitration awards or unpaid financial obligations to this or any other REALTOR® association or REALTOR® association MLS
  6. Any misuse of the term REALTOR® or REALTORS® in the name of the applicant’s firm.

"Provisional" membership may be granted in instances where ethics complaints or arbitration requests (or hearings) are pending in other associations or where the applicant for membership has unsatisfied discipline pending in another association (except for violations of the Code of Ethics; See Article V, Section 2 (a) NOTE 2) provided all other qualifications for membership have been satisfied. Associations may reconsider the membership status of such individuals when all pending ethics and arbitration matters (and related discipline) have been resolved or if such matters are not resolved within six months from the date that provisional membership is approved. Provisional members shall be considered REALTORS® or REALTOR-ASSOCIATES® and shall be subject to all of the same privileges and obligations of REALTOR® or REALTOR-ASSOCIATE® membership.  If a member resigns from another association with an ethics complaint or arbitration request pending, the association may condition membership on the applicant's certification that he/she will submit to the pending ethics or arbitration proceeding (in accordance with the established procedures of the association to which the applicant has made application) and will abide by the decision of the hearing panel. (Amended 11/09)

Article V — Qualification and Election

Section 4. New Member Code of Ethics Orientation.

Applicants for REALTOR® and REALTOR-ASSOCIATE® membership and provisional REALTOR® and REALTOR-ASSOCIATE® members (where applicable) shall complete an orientation program on the Code of Ethics of not less than two (2) hours and thirty (30) minutes of instructional time. This requirement does not apply to applicants for REALTOR® and REALTOR-ASSOCIATE® memberships or provisional members who have completed comparable orientation in another association, provided that REALTOR® or REALTOR-ASSOCIATE® membership has been continuous, or that any break in membership is for one year or less.

Failure to satisfy this requirement within _____ days of the date of application (or, alternatively, the date that provisional membership was granted), will result in denial of the membership application or termination of provisional membership.

NOTE:  Orientation programs must meet the learning objectives and minimum criteria established from time to time by the NATIONAL ASSOCIATION OF REALTORS®. (Adopted 1/01)

Article V — Qualification and Election

Section 5. REALTOR® Code of Ethics Training

Effective January 1, 2001, through December 31, 2004, and for successive four (4)-year periods thereafter, each REALTOR® and REALTOR-ASSOCIATE® member of the association (with the exception of REALTOR® and REALTOR-ASSOCIATE® members granted REALTOR® Emeritus status by the National Association) shall be required to complete quadrennial ethics training of not less than two (2) hours and thirty (30) minutes of instructional time.  This requirement will be satisfied upon presentation of documentation that the member has completed a course of instruction conducted by this or another association, the State Association of REALTORS®, the NATIONAL ASSOCIATION OF REALTORS®, or any other recognized educational institution or provider which meets the learning objectives and minimum criteria established by the NATIONAL ASSOCIATION OF REALTORS® from time to time.  REALTOR® and REALTOR-ASSOCIATE® members who have completed training as a requirement of membership in another association and REALTOR® and REALTOR-ASSOCIATE® members who have completed the New Member Code of Ethics Orientation during any four (4)-year cycle shall not be required to complete additional ethics training until a new four (4)-year cycle commences.

Failure to complete the required periodic ethics training shall be considered a violation of a membership duty.

Failure to meet the requirement will result in suspension of membership for the first two months (January and February) of the year following the end of any four (4)-year cycle or until the requirement is met, whichever occurs sooner.  On March 1 of that year, the membership of a member who is still suspended as of that date will be automatically terminated. (Adopted 1/01, Amended 11/08)

Article V — Qualification and Election

Section 6. Status Changes

(a) A REALTOR® or REALTOR-ASSOCIATE® who changes the conditions under which he/she holds membership shall be required to provide written notification to the association within ________ days (30 recommended). A REALTOR® (non-principal) or REALTOR-ASSOCIATE® who becomes a principal in the firm with which he/she has been licensed or, alternatively, becomes a principal in a new firm which will be comprised of REALTOR® principals may be required to satisfy any previously unsatisfied membership requirements applicable to REALTOR® (principal) members but shall, during the period of transition from one status of membership to another, be subject to all of the privileges and obligations of a REALTOR® (principal). If the REALTOR® (non-principal) or REALTOR-ASSOCIATE® does not satisfy the requirements established in these Bylaws for the category of membership to which they have transferred within _______ days of the date they advised the association of their change in status, their new membership application will terminate automatically unless otherwise so directed by the board of directors.

A REALTOR® (or REALTOR-ASSOCIATE®, where applicable) who is transferring their license from one firm comprised of REALTOR® principals to another firm comprised of REALTOR® principals shall be subject to all of the privileges and obligations of membership during the period of transition. If the transfer is not completed within ____________ days of the date the association is advised of the disaffiliation with the current firm, membership will terminate automatically unless otherwise so directed by the board of directors. (Amended 1/98)

(The board of directors, at its discretion, may waive any qualification, which the applicant has already fulfilled in accordance with the association’s bylaws.)

Article VI — Privileges and Obligations

Section 2.

Any Member of the association may be reprimanded, fined, placed on probation, suspended, or expelled by the board of directors for a violation of these Bylaws and association Rules and Regulations not inconsistent with these Bylaws, after a hearing as provided in the Code of Ethics and Arbitration Manual of the association. Although Members other than REALTORS® and REALTOR-ASSOCIATE®s are not subject to the Code of Ethics nor its enforcement by the association, such members are encouraged to abide by the principles established in the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® and conduct their business and professional practices accordingly. Further, members other than REALTORS® and REALTOR-ASSOCIATE®s may, upon recommendation of the membership committee, or upon recommendation by a hearing panel of the professional standards committee, be subject to discipline as described above, for any conduct, which in the opinion of the board of directors, applied on a nondiscriminatory basis, reflects adversely on the terms REALTOR® or REALTORS®, or REALTOR-ASSOCIATE®s and the real estate industry, or for conduct that is inconsistent with or adverse to the objectives and purposes of the local association, the State Association, and the NATIONAL ASSOCIATION OF REALTORS®.

Article VI — Privileges and Obligations

Section 3.

Any REALTOR® or REALTOR-ASSOCIATE® member of the association may be disciplined by the board of directors for violations of the Code of Ethics or other duties of membership, after a hearing as described in the Code of Ethics and Arbitration Manual of the association, provided that the discipline imposed is consistent with the discipline authorized by the Professional Standards Committee of the NATIONAL ASSOCIATION OF REALTORS® as set forth in the Code of Ethics and Arbitration Manual of the National Association.

Article VI — Privileges and Obligations

Section 6. REALTOR® Members

(b) In any action taken against a REALTOR® member for suspension or expulsion under Section 6 (a) hereof, notice of such action shall be given to all REALTORS® and/or REALTOR-ASSOCIATE®s employed by or affiliated as independent contractors with such REALTOR® Member and they shall be advised that the provisions in Article VI, Sections 6 (a) and 7 (d) shall apply.

Section 13. Legal Liability Training

The following section may be adopted at the discretion of the local association.
Section 13. Legal Liability Training.  Within two (2) years of the date of election to membership, and every two (2) years thereafter, each REALTOR® and REALTOR-ASSOCIATE® member of the association shall be required to demonstrate that they have completed a course of instruction on antitrust laws, agency laws, civil rights laws or the REALTORS® Code of Ethics, its interpretation and meaning and/or the procedures related to its enforcement.

This requirement will be considered satisfied upon presentation of evidence that the member has completed an educational program conducted by another Member Board, the State Association of REALTORS®, the NATIONAL ASSOCIATION OF REALTORS® or any of its affiliated institutes, societies or councils, or any other recognized educational institution which, in the opinion of the board of directors, is an adequate substitute for the training programs conducted by the association.

Failure to satisfy this requirement biennially will result in membership being suspended from the date it otherwise would be renewed until such time that the member provides evidence of completion of the aforementioned educational requirements.

NOTE:  Any education requirement must comply with Interpretation No. 37 of Article I, Section 2, Bylaws, NATIONAL ASSOCIATION OF REALTORS®.

Article VII — Professional Standards and Arbitration

Section 2.

It shall be the duty and responsibility of every REALTOR® and REALTOR-ASSOCIATE® member of this association to abide by the Constitution and Bylaws and the Rules and Regulations of the association, the Constitution and Bylaws of the State Association, the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, and to abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, including the duty to arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further defined and in accordance with the procedures set forth in the Code of Ethics and Arbitration Manual of this association as from time to time amended.

Alternate Section 2 for associations that require members to mediate otherwise-arbitrable disputes:

Section 2.  It shall be the duty and responsibility of every REALTOR® and REALTOR-ASSOCIATE® member of this association to abide by the Constitution and Bylaws and the rules and regulations of the association, the Constitution and Bylaws of the State Association, the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, and to abide by the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, including the duty to mediate and arbitrate controversies arising out of real estate transactions as specified by Article 17 of the Code of Ethics, and as further defined and in accordance with the procedures set forth in the Code of Ethics and Arbitration Manual of this association, as from time to time amended. (Adopted 11/11)

Article VIII — Use of the Terms REALTOR® and REALTORS®

Heading

Article VIII — Use of the Terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE®

Section 1.

Use of the terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE® by members shall, at all times, be subject to the provisions of the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS® and to the Rules and Regulations prescribed by its board of directors. The association shall have the authority to control, jointly and in full cooperation with the NATIONAL ASSOCIATION OF REALTORS®, use of the terms within its jurisdiction.  Any misuse of the terms by members is a violation of a membership duty and may subject members to disciplinary action by the board of directors after a hearing as provided for in the association’s Code of Ethics and Arbitration Manual. (Amended 5/06)

Article VIII — Use of the Terms REALTOR®, REALTORS®, and REALTOR-ASSOCIATE®

Section 5.

Institute Affiliate members shall not use the terms REALTOR®, or REALTORS®, or REALTOR-ASSOCIATE®, nor the imprint of the emblem seal of the NATIONAL ASSOCIATION OF REALTORS®.

Article IX — State and National Memberships

Section 1.

The association shall be a member of the NATIONAL ASSOCIATION OF REALTORS® and the _____________________ (state) Association of REALTORS®.  By reason of the association’s membership, each REALTOR® and REALTOR-ASSOCIATE® member of the Member Board shall be entitled to membership in the NATIONAL ASSOCIATION OF REALTORS® and the _____________________ of (state) Association of REALTORS® without further payment of dues (refer to the option below).  The association shall continue as a member of the State and National Associations, unless by a majority vote of all of its REALTOR® members, decision is made to withdraw, in which case the State and National Associations shall be notified at least one month in advance of the date designated for the termination of such membership.

Option for Section 1:  If the State Association does not adopt and incorporate into its bylaws dues similar to Article II of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS®, the sentence above should instead read:

By reason of the association’s membership, each REALTOR® and REALTOR-ASSOCIATE® member of the Member Board shall be entitled to membership in the NATIONAL ASSOCIATION OF REALTORS® without further payment of dues and upon payment of dues as established by the ______________________________ (state) Association of REALTORS® to membership in the State Association.

Article IX — State and National Memberships

Section 2.

The association recognizes the exclusive property rights of the NATIONAL ASSOCIATION OF REALTORS® in the terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE®. The association shall discontinue use of the terms in any form in its name, upon ceasing to be a member of the National Association, or upon a determination by the board of directors of the National Association that it has violated the conditions imposed upon the terms.

Section 3.

The association adopts the Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® and agrees to enforce the Code among its REALTOR® and REALTOR-ASSOCIATE® Members. The association and all of its members agree to abide by the Constitution, Bylaws, Rules and Regulations, and policies of the National Association and the ____________________________ (state) Association of REALTORS®.

Article X — Dues and Assessments

Section 2. Dues

The annual dues of Members shall be as follows:

(a) REALTOR® Members. The annual dues of each designated REALTOR® member shall be in such amount as established annually by the board of directors, plus an additional amount to be established annually by the board of directors times the number of real estate salespersons and licensed or certified appraisers who (1) are employed by or affiliated as independent contractors, or who are otherwise directly or indirectly licensed with such REALTOR® member, and (2) are not REALTOR® or REALTOR-ASSOCIATE® members of any association in the state or a state contiguous thereto or Institute Affiliate Members of the association. In calculating the dues payable to the association by a designated REALTOR® member, non-member licensees as defined in (1) and (2) of this paragraph shall not be included in the computation of dues if the designated REALTOR® has paid dues based on said non-member licensees in another association in the state or a state contiguous thereto, provided the designated REALTOR® notifies the association in writing of the identity of the association to which dues have been remitted.  In the case of a designated REALTOR® member in a firm, partnership, or corporation whose business activity is substantially all commercial, any assessments for non-member licensees shall be limited to licensees affiliated with the designated REALTOR® (as defined in (1) and (2) of this paragraph) in the office where the designated REALTOR® holds membership, and any other offices of the firm located within the jurisdiction of this association. (Amended 1/05)

Section 3. Dues Payable

(a) In the event a sales licensee or licensed or certified appraiser who holds REALTOR® or REALTOR-ASSOCIATE® membership is dropped for nonpayment of association dues, and the individual remains with the designated REALTOR®'s firm, the dues obligation of the "designated" REALTOR® (as set forth in Article X, Section 2 [a]) will be increased to reflect the addition of a non-member licensee. Dues shall be calculated from the first day of the current fiscal year and are payable within 30 days of the notice of termination.

Section 7.

The dues of REALTOR® or REALTOR-ASSOCIATE® members who are REALTOR® Emeriti (as recognized by the National Association), past presidents of the National Association, or recipients of the Distinguished Service Award shall be as determined by the board of directors.

NOTE:   A Member Board’s dues obligation to the National Association is reduced by an amount equal to the amount which the association is assessed for a REALTOR® or REALTOR-ASSOCIATE® member, times the number of REALTOR® Emeriti (as recognized by the National Association), past presidents of the National Association, and recipients of the Distinguished Service Award of the National Association who are REALTOR® or REALTOR-ASSOCIATE® members of the association.  The dues obligation of such individuals to the local association should be reduced to reflect the reduction in the association’s dues obligation to the National Association.  The association may, at its option, choose to have no dues requirement for such individuals except as may be required to meet the association’s obligation to the State Association with respect to such individuals.  Member Boards should determine whether the dues payable by the association to the State Association are reduced with respect to such individuals.  It should be noted that this does not affect a "designated" REALTOR®'s dues obligation to the association with respect to those licensees employed by or affiliated with the "designated" REALTOR® who are not members of the local association.

Article XIII — Committees

Section 1. Standing Committees

The president shall appoint from among the REALTOR® and REALTOR-ASSOCIATE® members, subject to confirmation by the board of directors, the following standing committees:

  • professional standards
  • grievance
  • multiple listing (when the MLS is a committee)

NOTE:  Other standing committees which may be listed under this section include, but are not limited to, finance, legislative, public relations, membership, REALTOR® protection, education, equal opportunity, RPAC fundraising, international, commercial, affordable housing, community service, REALTOR®-of-the-year, etc.) (Amended 1/05)

Article XVI — Amendments

Section 3.

Amendments to these Bylaws affecting the admission or qualification of REALTOR®, REALTOR-ASSOCIATE®, and Institute Affiliate members, the use of the terms REALTOR®, and REALTORS®, and REALTOR-ASSOCIATE®, or any alteration in the territorial jurisdiction of the association shall become effective upon their approval as authorized by the board of directors of the NATIONAL ASSOCIATION OF REALTORS®.

 

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