WASHINGTON D.C.—An update to the National Association of REALTORS®’ (NAR) Code of Ethics and standard practices is in the works—with an official vote in the books set for tomorrow, June 5, at the NAR board of directors meeting being held during the Midyear Legislative Meetings.
The proposed recommendations, voted on by NAR’s Professional Standards Committee, focus on NAR’s Standard of Practice 10-5 (SOP 10-5) and Policy Statement 29, with the goal of “clearing up confusion and uncertainty” on enforcing Article 10.
The SOP 10-5, currently, reads as follows: REALTORS® must not use harassing speech, hate speech, epithets or slurs based on race, color, religion, sex, disability, familial status, national origin, sexual orientation or gender identity.
The amended language reportedly removes “hate speech, epithets or slurs” segment from the 10-5, provides a definition of harassment and updates Statement 29 to encourage REALTORS® to follow the code in all of their activities, but states they shall be subject to disciplinary action only if the code is not followed during real estate-related activities.
NAR President Kevin Sears, at the legislative meetings on Sunday, cleared some things up about the SOP 10-5.
“I want you to know that the recommendation has nothing to do with who’s sitting in the White House,” said Sears, which drew a smattering of incredulous laughter from the crowd.
For the past two years, local associations have called out the “ambiguity” in the 10-5 rules, Sears said. “We’ve got 1,100 local associations, which means we can have 1,100 different interpretations of the rule.”
“Wrong side of history”
The SOP 10-5 and the enforceable Policy Statement 29 were approved Nov. 13, 2020, following the killing of George Floyd and the subsequent surge of the Black Lives Matter movement.
A week after the approved changes, NAR released a letter offering a “full-on apology for racist practices of the past” and vowed to “keep working to correct lasting inequities in housing.”
Acknowledging that the association had been on the wrong side of history, NAR’s Code of Ethics from 1924 to 1974 included the following passage: REALTORS® “should never be instrumental in introducing into a neighborhood…members of any race or nationality, or any individuals whose presence will clearly be detrimental to property values in that neighborhood.”
The letter specifically addressed the organization’s “bold move to reinforce fair housing principles” with its vote to ban discriminatory hate speech and conduct against protected classes.
Calling it a carefully considered addition, the change came in response to a wave of complaints “about REALTORS® posting discriminatory speech and conduct online, especially on social media.”
Recently, after a legal battle with NAR and the Virginia Association of REALTORS®, Wilson Fauber, a longtime pastor and REALTOR® from Virginia, was found guilty of an ethics violation for “hate speech” violations against the LGBTQ+ community.
According to his legal team, Fauber was ordered to undergo multiple re-education programs and pay a fine to keep his REALTOR® membership.
In 2022, another pastor and REALTOR® was charged with hate speech violations against the LGBTQ+ community. This Montana pastor, Brandon Huber, refused to pay the $5,000 fine and complete the diversity training to maintain his NAR membership.
