How often is the NAR Code of Ethics updated

The real estate industry encourages the highest level of ethics in business practice to promote and preserve the right to own, use, exchange, and transfer real property. For over 100 years, the National Association of REALTORS® (NAR) Code of Ethics and Standards of Practice has set the stage for ethical excellence in real estate by outlining the ethical duties that all REALTORS® agree to follow as part of their membership.

The NAR Code of Ethics is a living document that undergoes regular revisions to keep it updated and relevant as the real estate industry evolves. It is imperative that real estate professionals understand ethical standards, know why they are important, and abide by them. That’s why all REALTORS® are required to regularly complete an ethics training course.

WebCE’s NAR ethics training course Adhering to a Higher Standard: The Code of Ethics is currently approved in the following states: Colorado, Illinois, Iowa, Maine, Missouri, Montana, North Carolina, Oregon, and Washington state. More states are expected to approve the course over the next year.

How often are REALTOR® ethics courses required?

The National Association of REALTORS® requires members to take an approved two-and-a-half-hour ethics training course every three years. The current deadline for NAR members to take their ethics course is December 31, 2021. After this year, the next cycle will be from January 1, 2022, to December 31, 2024. The NAR also requires all new members to take an ethics orientation course.

The local REALTOR® association is responsible for tracking the ethics requirement. REALTORS® who complete their ethics training during any three-year cycle are not required to complete additional ethics training, in respect to this requirement as a requirement of membership in any other REALTOR® Board or Association.

Structure of the NAR Code of Ethics and Standards of Practice

The Code of Ethics is divided into three primary sections:

• Articles 1–9: Duties to Clients and Customers
• Articles 10–14: Duties to the Public
• Articles 15–16: Duties to REALTORS®

The Articles and Standards of Practice (SOP) of the Code are arranged in order of importance and impact to the public. Article 1’s pledge of protecting and promoting the interests of the client is the most important obligation that REALTORS® have. The Standards of Practice supporting Article 1 and all subsequent Articles are also arranged in order of importance.

Enforcement of the NAR Ethics Code

Members of the public, as well as other REALTORS®, may file a complaint against a REALTOR® based on anyone, or combination, of the 17 Articles of the Code. In most cases, complaints are handled by the local association, but occasionally a complaint may be referred to the state REALTOR® association. Suggested procedures are laid out in the NAR Code of Ethics and Arbitration Manual.

The Code of Ethics and Arbitration Manual is reviewed and published annually by the National Association of REALTORS®. The Manual provides recommended policies and procedures for use with both ethics complaints and arbitration hearings. The Manual also provides case interpretations for sample cases of violations of the Code along with the resulting disciplinary action.

Complete Your Online NAR Ethics Training

WebCE’s NAR ethics training course Adhering to a Higher Standard: The Code of Ethics is currently approved in the following states: Colorado, Illinois, Iowa, Maine, Missouri, Montana, North Carolina, Oregon, and Washington state, with more states expected to approve the course soon. Licensees must confirm with their local REALTOR® association if it will accept this course for ethics training.

Real estate professionals can complete the required NAR ethics training with our online course, Adhering to a Higher Standard: The Code of Ethics. This course was designed by industry experts to provide real estate licensees with a better understanding of the Articles of the Code of Ethics and the enforcement of the Code to ensure all REALTORS® provide a high level of ethical service.

By completing their ethics training online with WebCE, REALTORS® can complete their ethics training on their own schedule and at their own pace. To order NAR ethics training and other real estate training courses from WebCE, you can use the buttons below or visit the real estate CE catalog.

The National Association of REALTORS adopted changes to the REALTOR Code of Ethics at the Annual Convention held in San Diego, CA in November of 2021. These changes are effective January 1, 2022.

Article 1, Standard of Practice 1-8 is amended as follows, (underscoring indicates additions; strikeouts indicate deletions):

REALTORS®, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counter-offers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Upon the written request of the Listing broker who submits a counter-offer to the buyers/tenants broker, the buyers/tenants broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants has waived the obligation to have the counter-offer presented. REALTORS®, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a preexisting contract has been terminated.

Article 12, Standard of Practice 12-1 is amended as follows, (underscoring indicates additions, strikeouts indicate deletions):

Unless they are receiving no compensation from any source for their time and services, REALTORS® may use the term “free” and similar terms in their advertising and in other representations only if they clearly and conspicuously disclose:

1) by whom they are being, or expect to be, paid;

2) the amount of the payment or anticipated payment;

3) any conditions associated with the payment, offered product or service, and;

4) any other terms relating to their compensation.

REALTORS® must not represent that their brokerage services to a client or customer are free or available at no cost to their clients, unless the REALTOR® will receive no financial compensation from any source for those services.

When was the Code of Ethics written?

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What concept is the Code of Ethics based on?

How many articles are there in the Code of Ethics?