Three Way Agreement Information

About NAR's Three-way Agreement

The Three-way Agreement is more of a concept than a written document. The idea of the agreement, which for the most part establishes the relationships between NAR, state associations and local boards, are established in part in a board's governing documents, it's charter, license agreement to use the NAR trademarks, and other documents that concern the inter-activity of NAR, state associations, and local boards.

There is a brief explanation of the Three-way Agreement in the Membership Policy and Board Jurisdiction Manual which provides:

A new member in a board of REALTORS may find himself or herself perplexed when first hearing the term "Three-way Agreement" during a meeting of a board committee or a regular full membership meeting. However, the basic concept is simple. The term "Three-way Agreement" refers to the written agreement of the National Association of REALTORS with the state association and the member boards of that state. This written agreement grants the right to use the term REALTORS in the name of each state association and local board. The agreement also gives each association and board the right to grant the use of the terms REALTOR and REALTOR-ASSOCIATE within the territorial jurisdiction of each association and board to such individuals as deemed qualified for membership. In turn, the state associations and local boards agree to:

• accept the charge of properly granting and regulating the use of terms REALTOR and REALTOR-ASSOCIATE
• subscribe to the Code of Ethics of the National Association
• uphold and enforce the Code within the board's jurisdiction