2015 Summary of Key Membership Policy Changes
This summary highlights substantive issues and changes, but is not all inclusive. For more details about these changes, please refer to the Membership Policy and Board Jurisdiction Committee’s actions for 2014, available here.
Changes to Limited Function Referral Office Policy
At the 2014 REALTORS® Conference & Expo, the NAR Board of Directors approved an optional amendment to the NAR Model Bylaws for Local Member Boards to assist local associations in tracking licensees affiliated with REALTOR® owned LFROs. Article X, Section 2(a)(1) of the NAR Model Bylaws for Local Member Boards was amended, as follows (underscoring indicates additions):
(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®. Designated REALTORS® shall notify the association within three (3) days of any change in status of licensees in a referral firm.
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)
Changes to the Procedure for Approving Names of Member Boards and Associations
At the 2014 REALTORS® Conference & Expo the NAR Board of Directors approved amendments to the Procedure for Approving Names of Member Boards and Associations to:
Require that the Committee will not consider an application for change of name if the applicant association has submitted and withdrawn the identical (or substantively similar) application within a two year period.
Require that applicant associations have a representative at any hearing.
The burden shall be on applicant associations to demonstrate that the name selected meets the criteria for approval.
- Establish a $500 filing fee to be paid by applicant associations if objections are filed and a hearing is requested. A 30 day withdrawal policy applies to all filing fees. If an applicant association withdraws its application within 30 days of a scheduled hearing, the full fee will be forfeited, unless within that time all parties agree in writing to the withdrawal. The filing fee will be refunded under the following circumstances:
a. The applicant association participates in voluntary mediation or other similar dispute resolution process;
b. The applicant association withdraws its application no later than 30 days prior to a scheduled hearing.
Download: DOC (19 KB)