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2014 Summary of Key Membership Policy Changes

Note: The 2015 update to this policy will be posted in early January.

Revisions to the 2014 NAR Model Bylaws for Local Member Boards

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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)

Interpretation NO. 32 of Article I, Section 2 of the NAR Bylaws

Interpretation NO. 32 of Article I, Section 2 of the NAR Bylaws has been amended to clarify that the cost of lockbox services (where it is a service of the association) may, at local discretion, be included in association dues.

(underscoring indicates additions; strike-outs indicate deletions):

Interpretation No. 32

“The inclusion in the dues payable by Board Members of costs of services, products or activities of the Board which properly should be optional is an inequitable limitation on its membership.”

The dues payable by Board Members should represent the allocable costs of the services, products and facilities which are available to and benefit the members generally, either directly or indirectly. It should not include the costs of those services, products or facilities which can be identified as optional. Thus, for example, the cost of participating in the Board's MLS should not be included as part of Board dues since whether a member determines to participate in such an activity will depend upon the member's particular method or type of business. The reasonable cost of meals at general membership meetings held pursuant to the Board's bylaws may be included in Board dues since such meetings are necessary to the operations of the Board as a whole provided that no more than 35% of the local allocation of the Board's annual dues revenue may be utilized for this purpose. Associations may, at their discretion, include the costs of  lockboxes and lockbox keys, programmers, fobs, smart cards, and other access devices in the association dues.

Revised Merger Kit

NAR's Merger Kit was updated in 2013. The Merger Kit is a resource for associations considering a merger and may be downloaded here (PDF: 4.85 MB).