New Member Board Formation
Below is the procedure to establish a new Member Board of the NATIONAL ASSOCIATION OF REALTORS®, including a Local Board Checklist, State Association Checklist, and required forms that must be completed and filed with the Member Policy Department of the National Association.
Questions concerning the new Member Board formation procedure can be directed to NAR’s Member Policy Department at 1-800-874-6500, x8399, or email@example.com.
Requirements to establish a new member board of the NATIONAL ASSOCIATION OF REALTORS®
The formation of a new Member Board of REALTORS® starts at the local level, proceeds to the State Association and then to the National Association of REALTORS® where the final determination is made.
The following criteria for the establishment of a New Member Board of REALTORS® govern the acceptance and consideration by the Membership Policy and Board Jurisdiction Committee of an application for Charter status as a constituent Member Board:
Ten (10) real estate firms and fifteen (15) Charter Members of any applicant group for Board status are the minimum numbers that will be considered by the Membership Policy and Board Jurisdiction Committee of the National Association except that the Committee may consider and act, at its discretion, to approve a new Board when the State Association endorses and recommends approval of an application even though the number of real estate firms or Charter Members is less than the minimum numbers specified herein, and the State Association indicates in its recommendation that it will monitor the progress of the recommended new Board and will assist it to carry out its duties of properly regulating the Registered Collective Membership Marks and enforcement of the Code of Ethics, if such assistance is needed.
The following forms and items must be submitted to the State Association for review and recommendation prior to transmittal to the National Association for its required approval:
1. Application for Member Board Status: This form must be completed in duplicate, signed by the proposed Board's President and Secretary, and considered by the State Association. The recommendation of the State Association must be dated and signed by the State President and forwarded to the National Association. The application form is attached at the bottom of the screen.
2. Agreement to Use the Term REALTOR® in Name of Member Board: This form must be completed in duplicate and signed by the proposed Board's President and Secretary. When and if the proposed Board is approved by the National Association, the President and Secretary of the National Association will sign the agreement and provide a copy to the new Board for its official records. Note: There are two (2) versions of the Agreement to Use the Term REALTOR® in the name of local Board (see attaced files below), one for incorporated Boards and the other for unincorporated Boards. The proper form must be utilized consistent with the Board's intended corporate status. It is strongly recommended that the proposed new board consider incorporation.
3. Description of Territorial Jurisdiction: A detailed description of the requested territorial jurisdiction must be placed on the application form, or it may be submitted as a addendum to the application form if insufficient space exists on the form. The description must be by metes and bounds, detailing the north, east, south and west boundaries, listing streets, rivers, etc. However, if the jurisdiction will consist of entire towns, cities, or counties, it is not necessary to use a metes and bounds description.
4. Map of Territorial Jurisdiction: A detailed map must be submitted to indicate the territorial jurisdiction requested. The entire boundaries of the requested territorial jurisdiction should be outlined in a distinctive color on the map.
5. Release of Territory: If a portion of an existing Member Board's territory is being requested, a written release from the existing Member Board must be included with the territorial jurisdiction description. The release of territory by another Member Board is a "Change of Jurisdiction" and, as such, requires that the Board releasing the jurisdiction, complete an application for a change of jurisdiction, and follow the procedures specified.
6. Notice to Adjoining Member Boards: Notice must be sent to adjoining member boards to advise them of the proposed board's application. The purpose of this notice is to determine if there are competing claims for the territory. Boards shall have reasonable time to respond to the notice (not less than 45 days) and copies of all notices (and any replies) shall be submitted with the application.
7. Multi-State Jurisdiction: A new board application requesting assigned territorial jurisdiction in more than one state must include any agreement between affected state associations concerning state membership for REALTOR® members of the newly formed association. Where there is no agreement to the contrary between affected state associations, current NAR policy provides that REALTORS® holding primary membership will hold state membership in the state association where their office is located. Applicant associations are encouraged to discuss and resolve this issue with affected state associations early in the formation process. A copy of the agreement between state associations or, alternatively, written notification that no agreement exists must be included with the new board application. (4-98)
8. Proposed Name of New Board: Names selected by new boards and associations and applications for change of name submitted by existing boards and associations are considered based on policy established by the NAR Board of Directors.
To view the name change criteria and procedures on REALTOR.org go to Association Name Change Procedure
9. Proposed Bylaws of New Board: The proposed Member Board's Bylaws must be submitted with the application to the National Association for review and approval to ensure compliance with the policies of the National Association. Model Board Bylaws are available on realtor.org at Model Bylaws for Local Boards
10. Membership List: A roster of charter members and firms must be submitted with the application.
11. Membership Dues: Membership dues of the proposed new Member Board must be submitted with the application computed in accordance with Article II, Bylaws of the National Association, and prorated from the beginning of the month in which application is approved by the National Association.
12. 45-Day Requirement: All requests to place items on the agenda for consideration by the Board Jurisdiction Committee for its subsequent recommendation to the Board of Directors and all required forms of application and supporting documentation must be received in the Chicago office of the National Association at least 45 days prior to the next regularly scheduled meeting of the Committee.
Local Board Checklist
- Application for Membership completed in duplicate, signed where applicable by President and Secretary.
- Agreement to Use the Term REALTOR® completed in duplicate, signed where applicable by President and Secretary
- Jurisdiction description
- Map of proposed jurisdiction of new board
- Copies of letters to adjoining Boards advising formation of new Board, and copies of any replies
- Copy of agreement regarding state membership or written confirmation that no agreement exists. (Applies only to proposed new boards requesting assigned territorial jurisdiction in more than one state.)
- Copy of Proposed Board's Bylaws
- Roster of charter members
- Check for applicable membership dues
- Required forms and supporting documents submitted to the State Association for review and approval of its Directors
State Association Checklist
- A review of submitted forms and supporting documents of the proposed New Member Board.
- Submission of the proposed New Member Board's Application to the State Association's Directors for a favorable or unfavorable recommendation to the National Association
- Completion of State Association's portion of the Application, dated and signed by State President.
- Submission of the forms and all supporting documents to the National Association's Chicago office no later than 45 days prior to the next meeting of the Membership Policy and Board Jurisdiction Committee for its consideration and recommendation to NAR's Board of Directors for its approval.