This summary highlights substantive issues and changes. To see the 2024 Professional Standards Committee Actions for the REALTORS® Legislative Meetings and the NAR NXT, visit nar.realtor. Also, review the shaded portions of the 2025 Code of Ethics and Arbitration Manual which highlights all the changes to the Manual.

Overview of Changes to the Code of Ethics and Arbitration Manual

  • Amendment to Article 4, Standard of Practice 4-1 and a new Standard of Practice 4-2
  • Amendment to Standard of Practice 11-2
  • Amendment to Pathways to Professionalism, #6 under “Respect for Property”
  • Amendment to Part One, Section 6 and Part Seven, Section 31 of the Code of Ethics and Arbitration Manual confirming that appeals and procedural review proceedings are not recorded in any way.
  • Amendment to Part Two, Section 14 (i) of the Code of Ethics and Arbitration Manual indicating that respondents are required to document compliance when cease or refrain is imposed as a sanction.
  • Amendments to Part Four, Sections 21 (e) and (f) of the Code of Ethics and Arbitration Manual clarifying that when a complaint is referred back to the Grievance Committee after a complainant withdraws, the Grievance Committee will receive both the complaint and response
  • Amendment of Complaint Form E-1 to include the date of closing or conclusion of the transaction, if applicable
  • Amendment Appendix VI to Part Ten of the Code of Ethics and Arbitration Manual clarifying when mediation must be offered
  • Amendments to Section 23 (d), Appendix V to Part Four, and Part Ten Section 55 (b) of the Code of Ethics and Arbitration Manual extending the 30-day deadline to hold an appeal or procedural review to 45 days
  • Amendments to Section 23 (c) and 55 (a) of the Code of Ethics and Arbitration Manual clarify the role of the Board President and Professional Standards Administrator when reviewing appeals and procedural review requests

Changes to the Code of Ethics and Standards of Practice

Article 4

REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)

REALTORS® who have a present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, must disclose in writing the existence of such interest to all parties to the transaction prior to a party signing any agreement.

Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)

The present ownership interest in property for sale or lease, or contemplated interest to purchase or lease property, includes transactions in which REALTORS®:

  1. represent themselves
  2. represent a member of their immediate family
  3. represent their firm or any broker or agent thereof
  4. represent an entity in which the REALTOR® or member of their immediate family has a legal interest.

Standard of Practice 4-2

REALTORS® are not required to disclose the identity of the client or customer, nor the specific nature of the interest referred to in Article 4, but must disclose that an interest exists.

Note: The recommendations to amend Article 4 were approved at the May 9, 2024 meeting of the Board of Directors and the November 11, 2024 Delegate Body meeting held at the NAR NXT.

Standard of Practice 11-2

The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the REALTOR® is an agent or subagent, the obligations of a fiduciary or the applicable agency duties required by law.

Amendment to Pathways to Professionalism, #6 under “Respect for Property”

Amended number 6 under “Respect for Property” in Pathways to Professionalism as follows,

Obtain permission from appropriate parties (e.g., listing broker) before photographing, videographing, or streaming the interiors or exteriors of properties, or allowing others to do so.

Amendment to Part One, Section 6 and Part Seven, Section 31 of the Code of Ethics and Arbitration Manual

Appeals or procedural review proceedings shall not be recorded in any manner, including, but not limited to, use of a stenographer, court reporter, etc., by the Board or the parties.

Amendment to Part Two, Section 14 (i) of the Code of Ethics and Arbitration Manual

(i) Members may also be required to cease or refrain from continued conduct deemed to be in violation of the Code, or to take affirmative steps to ensure compliance with the Code, within a time period to be determined by the hearing panel. Where discipline is imposed pursuant to this subsection, the decision should also include additional discipline (e.g., suspension or termination of membership) that will be imposed for failure to comply document compliance by the date specified, and to continue to comply for a specified period not to exceed three (3) years from the date of required compliance.

Amendments to Part Four, Sections 21 (e) and (f) of the Code of Ethics and Arbitration Manual

Part Four, Sections 21 (e)

Complainants may withdraw their complaints at any time prior to adjournment of the ethics hearing. However, if complainant withdraws the complaint after transmission of the Grievance Committee’s decision to forward the complaint to a hearing and prior to adjournment of the ethics hearing, the complainant may not resubmit the complaint on the same matter. If complainant withdraws the complaint before transmission of the Grievance Committee’s decision to forward the complaint to a hearing, the complainant may resubmit the complaint on the same matter so long as it is filed within the 180- day filing deadline as defined in this Manual. If a complaint is withdrawn by the complainant after the Grievance Committee determines the complaint requires a hearing, it the complaint and response will be referred back to the Grievance Committee to determine whether a potential violation of the public trust (as defined in Article IV, Section 2 of the National Association’s Bylaws) may have occurred. Only where the Grievance Committee determines a potential violation of the public trust may have occurred may the Grievance Committee proceed as the complainant.

Part Four, Section 21 (f) (3) (1st and 4th paragraphs)

In the event that the complaint scheduled for a hearing is from a member of the public who refuses or is unable to attend the hearing and who has not requested a continuance in writing or who has not been granted a continuance, the complaint and response shall be referred back to the Grievance Committee. If the Grievance Committee determines that there is sufficient information for a Hearing Panel to consider (i.e., that there is clear, strong, and convincing proof), the complaint shall be amended to name the Grievance Committee as complainant and the hearing shall be continued to a new date. The respondent shall be provided with a copy of the amended complaint in such cases…

… If the REALTOR® or REALTOR ASSOCIATE® complainant continues to refuse a duly noticed request to appear, or if the complainant is excused from appearing for reasons deemed valid by the Hearing Panel, the hearing shall not take place, but rather the complaint and response shall be referred back to the Grievance Committee. If the Grievance Committee determines that there is sufficient information for a Hearing Panel to consider (i.e., that there is clear, strong, and convincing proof), the complaint shall be amended to name the Grievance Committee as complainant and the hearing shall be continued to a new date. The respondent shall be provided with a copy of the amended complaint in such cases.

Form #E-1, Ethics Complaint (in part)

Date(s) alleged violation(s) took place: __________
Date(s) you became aware of the facts on which the alleged violation(s) (is/are) based: __________
Date of the closing or conclusion of the transaction, if applicable:
________________________________________________________________________________

Amendment Appendix VI to Part Ten of the Code of Ethics and Arbitration Manual clarifying when mediation must be offered

It must be understood by all parties that participation in mediation procedures is entirely voluntary unless REALTORS® (principals) are required by their Board to mediate otherwise arbitrable disputes pursuant to Article 17. If the Board or Association does not require REALTOR® (principals) to mediate otherwise arbitrable matters, the parties should be offered the opportunity and encouraged to participate in the mediation process (and must be offered mediation if an arbitration request is filed either prior to or after review by the Grievance Committee) in good faith, and, further, encouraged to abide by the determination…

Amendments to Section 23 (d), Appendix V to Part Four, and Part Ten Section 55 (b) of the Code of Ethics and Arbitration Manual extending the 30-day deadline to hold an appeal or procedural review to 45 days from receipt

Section 23 (d)

When a request for appeal (as originally filed if in proper form, or as originally filed if no amendment is submitted, or as amended even if still deemed to be lacking) is received, the Professional Standards Administrator shall, within one day, as originally filed or as amended, send a copy to the other party, notify all parties at least ten (10) days in advance of the time and place of hearing by the Directors (including challenge Forms #E-6 and #E-7, Part Six of this Manual), and bring the matter before the Directors for hearing at their next regular meeting or at a special meeting called by the Professional Standards Administrator for the purpose, but no later than thirty (30) forty-five (45) days after the date of receipt of the appeal. The Professional Standards Administrator shall provide to the Directors in advance of the hearing, copies of the complaint, response, the Hearing Panel’s findings of fact and recommendation of discipline, if any, the President’s correspondence, if any, and the appeal request or amended appeal request, if any. The Directors shall be advised that the information is confidential and not to be discussed with others at any time.

Appendix V to Part Four

Notice of appeal to Directors. Any appeal to the Board of Directors shall be noticed properly to the parties and to the Directors. The written request for appeal shall be reviewed by the Board President or the President’s designee only for the purpose of determining whether the appeal states any legitimate basis for consideration by the Board of Directors. All requests for appeals received by the Board must be considered by the Board of Directors, and only those bases and issues raised in the written request for appeal may be raised by the appellant in any hearing before the Board of Directors.

The matter will be heard at the next regularly scheduled meeting of the Directors or at a special meeting called for the purpose of hearing the appeal, but no later than thirty (30) forty-five (45) days after the date of receipt of the appeal, giving a minimum of ten (10) days’ notice.

Part Ten, Section 55 (b)

When a request for procedural review (as originally filed if in proper form, or as originally filed if no amendment is submitted, or as amended even if still deemed to be lacking) is received, the Professional Standards Administrator shall within one (1) day of receipt of the request or within one (1) day of receipt of additional detail, if provided or the date that the period to provide additional detail has elapsed, send a copy to the other party, notify all parties of the time and place of the review hearing by the Directors at least ten (10) days in advance (including challenge Forms #A-7 and #A-8, Part Thirteen of this Manual), and bring the matter before the Directors for review at their next regular meeting or at a special meeting called by the Professional Standards Administrator for that purpose, but not later than thirty (30) forty-five (45) days after the date of receipt of the procedural review.

Note: All other references to thirty (30) days in the Manual for appeals and procedural reviews to be heard will be changed to forty-five (45) days.

Amendments to Section 23 (c) and 55 (a) of the Code of Ethics and Arbitration Manual to clarify the role of the Board President and Professional Standards Administrator when reviewing appeals and procedural review requests

Section 23 (c)

The written request for appeal shall be reviewed by the Board President (or the President’s designee) in consultation with the Professional Standards Administrator within ten (10) days after the appeal was transmitted to the association. The review is only for the purpose of determining whether the appeal states any legitimate basis for consideration by the Board of Directors. If determined to be insufficient, it shall be returned to the appellant accompanied by an explanation and a request for additional detail to be received by the Board within ten (10) days of notice.

Section 55 (a)

The request for procedural review shall be reviewed within ten (10) days of receipt of the request by the Board President or the President’s designee in consultation with the Professional Standards Administrator only for the purpose of determining whether the request states any legitimate basis for consideration by the Board of Directors. If determined to be insufficient, it shall be returned to the requester accompanied by an explanation and a request for additional detail to be received by the Board within ten (10) days of notice.

Important Note Relating to Fair Housing Training: REALTORS® are required to complete Fair Housing / Anti-Bias Training upon becoming a member, and every 3 years thereafter, coinciding with the Code of Ethics training timeline. This requirement is in addition to the Code of Ethics training. Qualified training must be of not less than 2 hours of instructional time. The training must meet specific learning objectives and criteria established by the National Association of REALTORS®. This requirement will begin January 1, 2025 with a deadline of December 31, 2027.

Training may be completed through NAR’s online courses or through another method, such as online or classroom courses via local/state associations.

To view the consequences for noncompliance, NAR fair housing course options, FAQs, information on course equivalency, learning objectives, suggested timed outline, and the mandatory bylaw language for both new members and existing members, please visit nar.realtor.

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