Report from the NAR Board of Directors Meeting, November 16, 2009

The Board of Directors had its first look at a powerful new database that will be available exclusively to REALTORSŪ beginning in April. The REALTORSŪ Property Resource will contain rich data on more than 140 million properties; the interface is made possible through the integration of technology and data, according to RPR CEO Dale Ross. NAR is investing $20 million for a five-year build-out, which will cover licensing and development of the front-end and acquisition of data from LPS, which operates Cyberhomes, and other sources.

RPR President Marty Frame walked the board through the site's features. Members will access the site using their NRDS number. They'll be able to view each property's characteristics and transaction history and add information based on their personal knowledge of the property. The system is expected to save members millions of dollars in data acquisition costs, and access to members will be free. NAR 2009 President Charles McMillan called the launch of RPR a "watershed moment."

The board also was given a tour of NAR's new consumer web site, HouseLogic, which launched its beta version on Nov. 12, during the annual conference. HouseLogic was developed by NAR to help its members extend their relationship with consumers through the lifecycle of homeownership and to provide an opportunity for homeowners and REALTORSŪ to speak together to federal legislators on public policy issues of common interest.

The site is a comprehensive resource for homeowners of the information they need to protect, maintain and enhance the value of their home. The site also gives members free access to various content packages from the site that they can use in their own marketing efforts, at www.houselogic.com/members.

The directors also took a number of actions on committee recommendations:

Multiple Listing Policy

Amended the Multiple Listing and Internet Data Exchange Policy to conform to NAR virtual office Web site (VOW) policy and to make clear that participants may not use IDX-provided listings for purposes other than display on their Web sites but are not required to prevent indexing of their Web sites by recognized search engines.

Approved $2 million to fund 13 "game changers," ideas submitted by state and local associations and NAR affiliates after a challenge issued to them at the August Leadership Summit. The 13 winning game changers will also get NAR supported coaching to implement their ideas. Another 22 associations will have their ideas funded. And every association submitting a game changing idea (some 200) will receive a $500 credit for professional development from NAR. Access the full list of game changer submissions.

Amended Multiple Listing and Real Estate Transaction Standards to clarify what is necessary to implement RETS, and suggests use of RESO Compliance Tracker to ensure compliance with the RETS policy.

Amended multiple listing policy to enable MLSs to require participants and subscribers to take training necessary to ensure familiarity with system enhancements or changes to MLS rule and policies. Also, added an optional rule that permits MLSs with nonmember participants to impose obligations on those participants mirroring the duties required under the Code of Ethics.

Equal Housing Opportunity

Amended NAR policy on equal housing opportunity to include opposition to discrimination based on sexual orientation.

Federal Housing Policy Voted to seek changes in FHA policies to ease the purchases of condominiums, support elimination of certification requirements on VA loans, and allow VA borrowers to negotiate all fees and closing costs.

International Policy

Approved International Committee recommendations seeking to raise the priority of housing and urban programs within the Obama administration's U.S. foreign assistance program and support the allocation of approved U.S. foreign assistance for efforts designed to help develop private real property markets around the world.

Professional Standards

Clarified that associations may take into account prior Code of Ethics violations and violations of other membership duties in considering applicants for REALTORŪ membership. The current language inadvertently limits consideration to previous violations determined by other associations.

Approved optional model language for local associations wishing to limit the number of members of the same real estate firm serving simultaneously on the Board of Directors.

Membership

Clarified the consequences of violating the terms of the dues exemption for referral licensees. Immediately upon so-called LFRO members engaging in any activities requiring a real estate license, they will be required to pay member dues.

Code of Ethics

Revised the Code of Ethics and Arbitration Manual to allow associations to use e–mail to deliver notices related to administration of professional standards enforcement.

Required that advertising by real estate "teams" meet the Code of Ethics "true picture" requirement by ensuring that firm names are displayed in a reasonable and readily apparent manner.

Added a Standard of Practice, under Article 3 of the Code of Ethics, to address misuse of lock boxes and other concerns related to unauthorized access to listed property. Amended Standard of Practice 11-1 to provide flexibility in information provided when clients require opinions of value or price that don't include all the elements currently required under Standard of Practice 11-1.

Legal Action

Approved $401,660 to fund 11 legal cases, including a challenge to a municipal ordinance requiring sellers to have an inspection and certification of compliance as condition of sale and a challenge to an ordinance that would apply a business license tax to real estate licensees.

Constitutional Change

Approved constitutional amendments making procedural changes to election process for NAR offices and amended the Code of Ethics to specifically include land brokerage. Both the constitutional and Code of Ethics changes were approved by the NAR Delegate Body following the Board of Directors meeting.

Other Reports

Treasurer Jim Helsel gave the directors good news about NAR's financial picture, reporting that membership was nearly 12 percent above budget for 2009, resulting in a positive budget variance. Actual membership for 2009, as of Nov. 1, was 1,188,217.

RPAC Fundraising Chair John Harrison and RPAC Major Donor Liaison reported that NAR met its fundraising goal, despite the difficult economy. Member Mobilization Liaison Carole Horn commended the membership on its 18.2 percent response to the call for action on the tax credit extension and expansion. Horn also reported on the growth of the Broker Involvement Program. Today, the program includes 2,480 brokers, representing 220,000 sales associates, and it continues to grow.

Awards

The directors also recognized:

Jerry Teeson, GRI, of Coon Rapids, Minn., and David M. Peretti, GRI, of Winchester, Mass., winners of the 2009 Distinguished Service Award.

Travis Kessler, RCE, CAE, CEO of the San Antonio (Texas) Board of REALTORSŪ, winner of the 2009 William Magel Award.

McMillan awarded the President's Cup to Steve Brown, vice president and liaison to committees, and Gary Thomas, vice president and liaison to government affairs.

Before turning the gavel over to 2010 President Vicki Cox Golder, McMillan acknowledged the rapid change in real estate during his year as president and praised the association's effective and wide-ranging programs and efforts such as Right Tools, Right Now, the consumer Web site HouseLogic, and the REALTORSŪ Property Resource. "Unlike Rip Van Winkle, we have not been asleep during the change. We have led change," he said.