Standard of Practice 10-5 Fair Housing and Public Statements
On Friday, November 13th, 2020 the National Association of REALTORS® passed a new Standard of Practice to add to Article 10. Standard of Practice 10-5 reads:
“REALTORS® must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.”
The proposed language was posted a few weeks before the adoption of the language and it has caused a stir among some REALTORS® who perhaps misunderstand the Standard of Practice or fear that it will be misapplied and cause an interruption in their business. I’ve recorded the video below in an attempt to address each of the concerns I’ve seen in the various social media discussions over the past week or so.
Unlike most changes to the REALTOR® Code of Ethics, which goes into effect on January 1st of each year following the passing of new rules, this change went into effect the day it was passed by the NAR Board of Directors.
Violations of Public Trust
In addition to the addition of the Standard of Practice, NAR also expanded what elements of Public Trust should be reported to state licensing commissions when the Code of Ethics hearing reveals violations to the public at large. Here is NAR’s statement:
At present, the definition of “public trust” includes demonstrated misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm. This recommendation would expand the definition to include all discrimination against the protected classes under Article 10, and all fraud. As a result, associations are now required to share with the state real estate licensing authority final ethics decisions holding REALTORS® in violation of the Code of Ethics in instances involving real estate-related activities and transactions where there is reason to believe the public trust, as expanded, may have been violated.
Expansion of Applicability
In addition to the other changes, the Code of Ethics was expanded to cover all of a REALTOR’S® activities and not just those involving real estate transactions. This gives way to holding agents to a higher standard in regards to Fair Housing and other questionable activities which agents may be involved in outside of a specific real estate transaction.
Here are a few additional resources:
NAR’s Professional Standards Committee Report
Atlanta REALTORS® Letter Requesting The Issue Be Addressed
Matthew great video. Spot on. I am on the NAR BOD and voted in favor of this and just taught my first ethics class yesterday with the new addition. It was received with open arm by the Realtors. Thanks again for your great video and work.
Thanks, Ben! Yeah, for the most part, I’ve had very positive feedback about the additional article. The only negative was a comment on YouTube.
I appreciate your work on the NAR BOD.
Matthew, thank you for taking the time to create this video. It is very well done. We live in a sad time when we need to adopt a SOP to hold ‘people’ accountable for what they say and/or do. My mom told me when I was very young…”if you don’t have something nice to say about someone, then don’t say anything at all”.
Thanks, Pat. It’s is a bit sad that NAR has to create this rule.