NAR Encourages SEC Approval of Request for Exemption from Broker/Dealer Registration

WASHINGTON, November 12, 2007

The National Association of Realtors® registered its support for the Securities and Exchange Commission’s actions to quickly approve NAR’s request for an exemption from securities broker/dealer registration. The exemption would allow commercial real estate professionals to provide real estate services to buyers during their consideration and purchase of Tenants-in-Common securities.

Tenants-in-Common is a form of ownership and investment vehicle that allows investors to enjoy the risks and rewards of real estate ownership without participating in property management. However, depending on how the sponsor organizes the transaction, a TIC may be subject to federal and state securities laws, in addition to the state real estate laws that apply to all TICs.

NAR asked the SEC to approve the exemption to clarify the extent to which commercial real estate professionals may provide real estate assistance to buyers in connection with TIC transactions and receive payment for the services provided. Under the Paperwork Reduction Act, the SEC has published NAR’s exemption request for comment by interested parties.

 “We appreciate the work of the commission and its staff on this important issue,” said NAR President Pat V. Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “The exemption we have requested represents a win-win approach that will allow investors interested in TIC securities to obtain real estate assistance. We enthusiastically encourage the commission to act expeditiously to approve the exemption request.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries.

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Information about NAR is available at www.realtor.org. This and other news releases are posted on the Web site’s “News media” section in the NAR Media Center