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NATIONAL ASSOCIATION OF REALTORS®
INSTITUTE AFFILIATE DUES
Financial Policies
November, 2003

Bylaw:
The policies and procedures for the reporting of members and the payment of dues by the Institutes, Societies and Councils of the National Association shall be established by the Board of Directors of the National Association.

Policies and Procedures for ISCs:

By April 1 of each year, the commercial Institutes, Societies and Councils of the National Association (the ISCs) shall file with the National Association lists of the names and office addresses of persons who hold a professional designation awarded by the ISCs or a class of membership in the ISCs which confers the right to hold office and who are not themselves REALTOR® or REALTOR®-ASSOCIATE Members of a Member Board, which list and number shall be presumed to be complete and accurate in all respects. Any Institute, Society or Council that maintains an anniversary year schedule of membership billings must provide this list of members on an annual basis, by April 1 of each year, and must include the month of renewal for each member eligible for Institute Affiliate membership.

The filing of this list of members shall be achieved by each commercial ISC acting as the point of entry (POE) for its Institute Affiliate members in the NRDS system. As POE, each commercial ISC accepts responsibility for the accuracy and timeliness of all data elements related to its Institute Affiliate members and agrees to perform their POE duties in conformity with NAR POE standards, as approved by NAR’s Board of Directors.

Each Institute, Society and Council will have dues assessed according to the membership year schedule (calendar year or anniversary year) of its members as reflected in its bylaws. For calendar year ISCs, annual renewal dues are due on January 1 with a grace period through March 31. For anniversary date memberships, the due date is the first day of the month following the date of the membership renewal with a 90 day grace period.

Dues shall be adjusted each month to reflect those new members holding a class of membership which confers the right to hold office or persons awarded a professional designation of the Institute, Society or Council during the preceding month who have not already, during the current fiscal year, been included in the calculation of Institute Affiliate dues payable by the Institute, Society or Council, or by any Member Board, or by any other Institute, Society or Council. If a REALTOR® member of a commercial ISC becomes inactive, the ISC will have a 90 day grace period from the date of notification of the change to bill and collect the member’s Institute Affiliate dues.

Any member with membership in more than one ISC that requires maintenance of Institute Affiliate membership shall pay according to the calendar year requirement if there is a conflict with renewal dates.

Dues for new ISC members and designees who join a commercial ISC later than January of any year beginning in 2004 shall be prorated monthly. Subject to due dates and grace periods as set forth above, the ISCs shall pay such prorated dues, as well as dues for renewing members, to the National Association at the end of the month following the month the remittance was received by the ISC.

If annual dues are not paid by April 1 for calendar year ISCs, or day 91 after the first day of the month following the anniversary date for anniversary date ISCs, the Association may assess such late charges and administrative fees as may be established by the Board of Directors. Any Institute, Society or Council delinquent in payment of dues by more than 90 days may be required to show cause as to why the Board of Directors, at its discretion, should not revoke the membership and/or charter of such ISC.

The annual dues of each Institute, Society and Council of the National Association shall be $75 times the number of individuals who hold a professional designation awarded by that ISC or who hold a class of membership in the ISC which confers the right to hold office and who are not included in the calculation of dues payable by any Member Board or other ISC of the National Association.

From the dues paid by the ISCs of the National Association in accordance with Article II, Section 1 of the NAR Bylaws, the National Association shall credit twenty-five dollars ($25) to the account of the Member Board (Local) for each individual included on the list provided by the ISC whose office address is within the assigned territorial jurisdiction of that Member Board, provided however, if the office location is also within the territorial jurisdiction of a Commercial Overlay Board, as provided for in Article III, Section 4 of the National Association’s Constitution, the $25 amount will be credited to the Commercial Overlay Board, unless the Institute Affiliate member directs that the dues be credited to the other board. The National Association shall also credit twenty-five ($25) to the account of the Member Board (state)for each individual included on the list provided by the ISC whose office address is within the assigned territorial jurisdiction of that Member Board (state).

Credits and refunds, will be handled as follows:

Refunds will arise when a Member Board (Local and/or State) receives a payment of Institute Affiliate dues for an individual who has, previously during the same year, paid REALTOR® dues to the Member Board. Since full REALTOR® membership provides a higher level of services to the individual member, that level of membership will be retained for that individual and the Institute Affiliate dues payment will be remitted back to NAR by the Local and State Associations for further refund to the ISC and member. Such refunds are due back to NAR from the Member Board within 30 days of receipt of the Institute Affiliate payment.

Credits will arise when a member pays Institute Affiliate dues through their commercial ISC, and then subsequently convert their membership to that of a REALTOR® or a REALTOR®-ASSOCIATE . Members must be billed only the incremental dues amount by their Member Boards, taking into account the $75 annual dues payment they’ve already made to NAR/state/board through their commercial ISC. Each Member Board (state and local) must indicate in their REALTOR® dues payments to NAR all such members who have converted their REALTOR® membership in this manner so that accurate accounting can take place at the state and national level for dues revenue. Such information must be included in the next monthly dues remittance mailing by the Member Board to NAR, but no later than 30 days after the member change in status occurs. ISCs will receive notification of these changes through NRDS emails.

Policies and Procedures for local boards:

Local boards retain POE responsibilities for Institute Affiliate member records in that there remains a duty that all of the required member records information in NRDS must be downloaded to their respective membership systems in a timely fashion.

NATIONAL ASSOCIATION OF REALTORS®
INSTITUTE AFFILIATE DUES COLLECTION POLICY

Note: the NAR Finance Committee is responsible for the collection of NAR dues from its Boards and ISCs, identifying specific patterns of delinquency in the collections process, requiring Boards and ISCs to provide specific written explanations of delinquencies, and requiring Board and ISC representatives to appear at hearings to explain the occurrences of such patterns.

DECEMBER 1st: The Institute Affiliate Financial Policies and the Dues Collection Policy, as approved by the NAR Board of Directors, is distributed to all commercial Institutes, Societies and Councils (ISCs).

JANUARY 1st: Dues for all renewing Institute Affiliate members from the commercial ISCs on a calendar year dues cycle are due and owing to the National Association of REALTORS®. Note that dues will be owed on a monthly basis (the first day of the month following the anniversary date) to NAR for those ISCs with an anniversary date dues billing cycle.

JANUARY 1 - MARCH 31: For commercial ISCs operating on a calendar-year dues cycle, the 90 day grace period for receipt of Institute Affiliate dues ends on March 31. Dues remittances to NAR must be delivered no later than April 1 and must cover all of the ISCs’ renewing designee members who wish to hold Institute Affiliate membership for that fiscal year. If the annual dues are not paid by April 1, NAR may assess such late charges and administrative fees up to 1.5% monthly on the outstanding balance. For commercial ISCs operating on an anniversary-date dues cycle, the dues remittance is to be received by NAR no later than the end of the month following the receipt of the remittance by the ISC and the 90 day grace period will begin on the first day of the month following the date of the membership renewal. If the annual dues are not paid by day 91, NAR may assess such late charges and administrative fees up to 1.5% monthly on the outstanding balance. If a REALTOR member of a commercial ISC becomes inactive, the ISC will have a 90 day grace period from the date of notification of the change to bill and collect the member’s Institute Affiliate dues.

If any commercial ISC continues to be delinquent in payment of dues, they may be required to appear at a show cause hearing of the NAR Finance Committee to explain why the NAR Board of Directors, at its discretion, should not impose additional penalties up to and including dropping the membership of such ISC. (See May 15 below)

MAY 1: Based upon the active Institute Affiliate member count in NRDS, the NAR Treasurer, with input from NAR Finance staff, prepares a delinquency notice, if necessary, and sends it to each commercial ISC Executive Officer and President whose Institute Affiliate dues have not been fully paid.

MAY 15: NAR Treasurer corresponds with delinquent commercial ISCs (Executive Officer and President) requesting written correspondence addressed to the Finance Committee of NAR stating reasons for unpaid Institute Affiliate dues or providing documented information to prove that the commercial ISC has, in fact, fully paid its dues. The Treasurer's correspondence indicates that unless the delinquency is resolved prior to May 31, the commercial ISCs may be required to appear before the Finance Committee or Sub-Committee at a special show cause hearing to resolve any delinquencies.
  • Should NAR have reason to believe that a commercial ISC has failed to remit the proper amount of dues to NAR pursuant to Article II, Section 1 of the NAR Bylaws for the current year, or for any period within three years prior to the current year, it may initiate inquiry to determine whether such commercial ISC fully paid its dues. Should written correspondence fail to resolve the matter to the satisfaction of the NAR Treasurer, a hearing may be scheduled to take place at the next regularly scheduled meeting of the Finance Committee or at any special meeting of the Finance Committee called for the purpose of addressing the alleged dues deficiency, provided, however, that any commercial ISC must have at least 30 days prior written notice of such regular or special meeting.
  • The notice to the commercial ISC is addressed to the commercial ISC President with copies to the commercial ISC Executive Officer, commercial ISC Treasurer, and NAR Finance Committee and sets forth the procedure to be followed in the hearing, and emphasizes that the issues to be determined by the Finance Committee or Sub-Committee is whether the commercial ISC has appropriately paid its dues in full to NAR or whether there are extenuating and mitigating circumstances that should be considered.
  • The requirements to appear will be vigorously enforced. Failure to appear will result in the Finance Committee presenting a recommendation to the Leadership Team and Executive Committee based on the information available to them at that time. At such meeting, the commercial ISC will be asked to state the reasons for not having to pay the proper amount of dues or provide documentation indicating it fully satisfied its dues obligation.
  • The Finance Committee may recommend disciplinary action be taken against any commercial ISC to be found in violation of Article II of the NAR Bylaws, which disciplinary action may include dropping the membership of the commercial ISC.

EXECUTIVE COMMITTEE: After consideration of the findings and recommendations of the Finance Committee, the Executive Committee may determine disciplinary actions or recommend to the Board of Directors disciplinary action including possible dropping of the membership of the delinquent commercial ISC or any other recommendations or punitive measure deemed necessary.

NAR HEARINGS: NAR Finance Staff distributes copies of written correspondence with the commercial ISCs and copies of written responses from delinquent commercial ISCs to the Finance Committee. If there are delinquent commercial ISCs who have not submitted a written response, NAR Finance staff summarizes conversations for the Finance Committee.
  • The hearing is conducted by a quorum of the NAR Finance Committee or Sub-Committee. The hearing is staffed by the Finance Division in consultation with the Board Policy Division and the Legal Affairs Division. Failure to appear at the hearing will result in the Finance Committee making a decision based on the information available to them at that time.
  • The Finance Committee or Sub-Committee, upon review of the results of the hearing, if necessary, shall present to the Executive Committee and subsequently the Board of Directors its recommendation of disciplinary action consisting of reprimands, fines, suspension of entitlements, and/or dropping the membership of the commercial ISC.

NAR BOARD OF DIRECTORS: Board of Directors reviews the recommendations, if any, of the Finance and Executive Committees regarding the delinquent commercial ISC and determines the necessary disciplinary or punitive measures.

NOTE: Copies of all correspondence will be provided to the Leadership Team, Board Policy Division, Legal Affairs Division, and the Finance Division.

NEW MEMBER DUES: Effective January 1, 2004, dues for new ISC Institute Affiliate members (defined as those individuals who have not already, during the current fiscal year, been included in the calculation of IA dues payable by the Institute, Society or Council, or by any Member Board, or by any other Institute, Society or Council) are due to NAR by the end of the month following the month of receipt of that member’s payment by the ISC. Dues are to be prorated on a monthly basis. NAR Finance staff will monitor these new member payments on a monthly basis and follow up on past due payments as necessary.


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