Guidelines for REALTOR® Associations: Providing Products and Services to Non-Members

In case you missed it, NAR has created a new resource for state and local associations about what constitutes an unauthorized membership in violation of NAR’s Constitution, Bylaws, and the Three-Way Agreement when it comes to selling services to non-members.

Highlights
  • NAR policy has not changed. The process we undertook regarding Phoenix was an activation of our pre-existing Charter Revocation Procedure to hold the local association accountable to our firmly established Constitution and Bylaws.
  • MLS participation is determined at the local level. MLSs have local discretion to determine individual participation requirements based on their market and applicable law. This longstanding policy has not changed.
  • Non-Member Products and Services. Separate from MLS access, local associations retain the discretion to offer certain services and resources to non-members. However, local associations may not offer an unauthorized membership option in violation of NAR’s Constitution, Bylaws, and the Three-Way Agreement. All state and local associations agree to abide by these policies as a condition of being part of the REALTOR® organization.
  • In cases of violations, NAR is obligated to act. Violations dilute the REALTOR® brand, threaten our integrated approach, and create confusion for both members and consumers. Failing to take action would put the benefits NAR members rely on—such as market research, business resources, a unified advocacy platform, and a single Code of Ethics—at risk. 
  • The Charter Revocation Procedure provides an opportunity to be heard. The multi-step process is built to allow an association several opportunities to discuss any alleged violations with leadership and present its case. We followed this process faithfully.

These guidelines for state and local associations outline what products and services associations may sell to non-members. These guidelines do not impact existing NAR policy regarding participation in MLSs, as non-member participation in MLSs is determined at the local level, not by NAR. 

In general, state and local REALTOR® associations may offer certain products and services to non-members (e.g., legal forms, education). However, those non-member products and services cannot be offered in a manner that explicitly or implicitly functions as a membership in a local or state REALTOR® association or otherwise violates NAR's Constitution, Bylaws, or policies. In assessing a potential violation, NAR considers:

Membership. NAR's Constitution and Bylaws expressly set forth the types of membership that local and state associations may offer. Associations may not offer non-REALTOR® memberships, unless in a form expressly permitted by NAR's Constitution and Bylaws.

  • NAR Bylaws Art. III, Sec. 3(C) ("Jurisdiction of a Member Board is hereby defined to mean: . . . The authority to accept as a REALTOR®, REALTOR-ASSOCIATE® or Institute Affiliate Member any person engaged in the real estate business . . . ."); see also NAR Constitution Art. III, Sec. 1 (describing eight classes of membership).
  • State and local REALTOR® associations may have other classes of membership (e.g., Institute Affiliate Members, Affiliate Members, Student Members, Honorary Members, etc.), but these are limited and still must be in a form as allowed by NAR. These are not a substitute membership class for real‑estate professionals who otherwise meet the qualifications of REALTOR® membership.

Three-Way Agreement. Members of a local REALTOR® association must also be members of NAR and the state/territorial REALTOR® association.

  • NAR Constitution Art. XV, Sec. 1(D) ("Such association shall agree that after a specified date all of its Member Boards and Individual Members, as a condition of continued membership, shall hold membership in the National Association.").

Non-Member Products and Services. Non-member products and services may not be offered in a manner that explicitly or implicitly functions as a membership in a state or local REALTOR® association only. Whether an offering functions as a membership will be evaluated on a case-by-case basis. NAR considers several factors in determining whether an offering effectively functions as a membership or is otherwise in violation of NAR's Constitution and Bylaws. These include, but are not limited to, whether the non-member products or services are:

  • Advertised and marketed explicitly or implicitly as a membership;
  • Available in exchange for annual dues (rather than for purchase or at a fee);
  • Available in an aggregated bundle of products and services similar to a REALTOR® membership rather than individually (à la carte) or in a limited offering. For example, NAR will evaluate if there is sufficient differentiation in the products or services available to members and the products and services available for purchase by non‑members;
  • Associated with attributes of membership rather than related to MLS participation;
  • Offered in a manner that seeks to circumvent the Three-Way Agreement and the requirement for membership in the national and state associations;
  • Offered in a manner that results in trademark infringement, could create market and consumer confusion, or may dilute the REALTOR® brand;
  • Offered in a manner that involves false, deceptive, or misleading practices or representations.

These guidelines focus on REALTOR® associations contemplating the sale of products and services to non-members. These guidelines do not address MLS participation for non-members. Association-owned MLSs may allow non-members to participate in an MLS. This is determined at the local level (not by NAR). Local and state associations with compliance-related questions may contact narpolicyquestions@nar.realtor.