The National Association of REALTORS®’ (NAR) Board of Directors has moved forward with amendments to NAR’s Standard of Practice 10-5 (SOP 10-5) and Professional Standards Policy Statement 29.
The new language provides a more specific definition of ‘harassment’ and reduces Article 10’s, along with the entire Code of Ethics‘, application only to instances in which REALTORS® operate in a professional capacity.
Harassment is defined as “unwelcome behavior directed at an individual or group based on one or more of the above protected characteristics where the purpose or effect of the behavior is to create a hostile, abusive, intimidating environment which adversely affects their ability to access equal professional services or employment opportunity.”
The update also removes language referring to certain protected characteristics, including usage of hate speech, epithets or slurs—replacing it with “shall not harass.”
The updated SOP 10-5 reads as follows: REALTORS®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities shall not harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
Prior to this change, REALTORS® could be subject to disciplinary action for “harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity” even outside of their professional lives.
The committee’s recommended changes were ratified by both the NAR Executive Committee and Board of Directors during NAR’s Midyear Legislative Meetings in Washington, D.C., this morning.
In a letter to stakeholders, NAR President Kevin Sears explained that, since 2020, it’s become clear that there has been uncertainty about the interpretation and the implementation of these standards of practice. The changes have been in discussion since 2023, Sears added.
In his opening address at the conference on Sunday, Sears denied the changes are being made in response to the new Trump administration.
The SOP 10-5 was adopted in November 2020 to further clarify the application of Article 10 by prohibiting REALTORS® from using harassing speech, hate speech, epithets or slurs.
What do REALTORS® think?
Justin Farrell, a broker from Missouri and NAR director, says the 10-5 debate was a difficult one as most other proposed changes passed without significant debate. He described the choice to amend the Code of Ethics as a practical one, although he said several folks he spoke to said it feels like “a step backward.”
“It was not something that was fun to vote on in any way, shape or form,” he says.
Farrell says he fully understands that REALTORS® don’t want to have NAR scrutinizing their personal life. He also notes that REALTORS® are generally under a tremendous amount of scrutiny, and the changes are something that are intended to reduce liability.
He adds that he sees NAR’s history in combatting hate speech and discrimination somewhat mirroring that of the country as a whole.
“We’ve got a lot of flaws. Our flag is battered and torn and ripped with all the bad things we’ve done. But if we slowly make progress and always constantly try to make progress, then that’s good,” Farrell says.
And while the change has sparked significant debate and controversy, Farrell says that he doesn’t believe the changes will affect how people act or operate their businesses, at least in the short term.
“I mean, to me, in my opinion…you still can’t be a jerk. You can’t be a terrible person,” he says.
Before the official ruling was voted on, RISMedia spoke with REALTORS® to get their perspective on the proposed changes.
Past president of the REALTOR® Association of Greater Fort Lauderdale and a REALTOR® since 1974, Steven David told RISMedia that if the proposed changes are made, it would be further evidence of NAR’s “reduced core values.”
“There is a large segment of the membership that are only members because of the ‘three-legged stool’ that essentially requires local association membership, state association membership and NAR membership. Were that not the case, I doubt they would have 10% of the membership they now have,” David said.
Gary Hughes, a REALTOR® with licenses in Virginia, Maryland and Washington, D.C., said the following section in the Code of Ethics should be removed: REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
“That part of the preamble is what should be removed because you can’t only have integrity and honor in the workplace. You either have it or you don’t,” Hughes said. “When I was in the Navy, you could ruin your career for something you did off-base and out of uniform. There was no space where, ‘It doesn’t count.’ You either exclude people or you don’t. You either treat all people fairly or you don’t. You either have integrity and honor or you don’t. NAR has just said you don’t need it. Ye is welcome here.”
To further drive his point, Hughes added more examples of the off-work behavior that would have been subject to consequences under the previous Code of Conduct, as with Wilson Fauber and Brandon Huber, two pastors and REALTORS® charged with hate speech violations.
“So why would anyone care if a person can give a speech at a KKK rally or post Neo-Nazi or antisemitic memes on social media as long as they don’t do it at work,” he added. “And the more subtle parts don’t count. I wonder if any of the REALTORS® in Long Island Divided disclosed their predilections to other REALTORS® or on social media or public events.”
Robin Turley, a REALTOR® in Maryland, suggested that NAR may be loosening its rules in only enforcing the Code of Ethics during an agents’ professional capacity to comply with “45” (President Trump).
“After (Trump) is no longer in position, they may put it back in there; I’m not sure. But, you can’t have people govern what you do in your personal life,” Turley explained. “You’re then held accountable to a higher, different standard…You can’t have them govern you, really, in your personal life.”
Gary Martin, a REALTOR® in California, told RISMedia that the average age of real estate agents tends to sway towards the older side, explaining that the agents who’ve been in the industry for years know what they’re doing and what they’re supposed to do to comply with NAR’s rules. The newer, younger agents, he added, are a different story, and are more likely to run into trouble with the rules.
“It’s the new, young agents; they can pass a test, get no training. Their broker says, ‘Just go sell a house. You’ll learn as you go,’” Martin said. “They’re the ones who are violating the Code of Ethics. It’s just all about the money for them.”
He added that whatever changes are made to the Code of Ethics, he doesn’t see how NAR can possibly follow up with every violation.
