An Association wishing to dissolve shall provide written notice to the National Association (with a copy to the State Association) along with a copy of the minutes from the General Membership Meeting where the dissolution was approved. The dissolution must be approved by a majority of the members present and qualified to vote at a General Membership Meeting called for such purpose at which a quorum is present, unless otherwise specified in the Association's Bylaws, or unless there are other requirements of state law. Associations should consult with Association legal counsel to determine the requirements of state law. This is especially important if the Association is dissolving to effect a merger with another Association. After all obligations of the Association are met, any remaining assets should be distributed in accordance with the Association's Bylaws. NAR’s legal staff has developed the attached checklist to assist associations in dissolving a corporation.
The NAR Board of Directors has authorized NAR Staff to administratively approve Association dissolutions upon receipt of all required documentation. The dissolving Association and State Association shall be notified in writing. Upon dissolution of the Association's charter by the National Association, the territorial jurisdiction of the Association shall revert to "unassigned" territory and NAR's jurisdiction records shall be updated accordingly. Reassignment of the territory (or a portion thereof) to another existing Association constitutes a change of jurisdiction and the jurisdiction requirements for "unassigned" territory shall apply. In the event the Association is dissolving to effect a merger with another Association, the requirements for "Merger of Member Associations" shall apply.
For questions or additional information, contact NAR's Member Policy Department at 312-329-8399.
updated January 2015