NAR Special Report from the November 11, 2024 Board of Directors Meeting

Board Approves Budget; Culture Transformation Plan Passes

At its Monday, Nov. 11 meeting, the National Association of REALTORS® Board of Directors approved NAR’s operating, advocacy and Consumer Ad Campaign budgets and approved a membership figure of 1.4 million to serve as the basis for dues revenue in the 2025 budget. To date in 2024, membership continues to track ahead of forecast, NAR Treasurer Greg Hrabcak reported. (For more on the membership count, see “Strength in Numbers.”)

REALTORS® Relief Foundation Board of Directors President Mike McGrew reported that the foundation had awarded more than $13.7 million in 2024. Hrabcak, who will head RRF in 2025, thanked McGrew for his leadership and appealed to the 986 directors in attendance (in person and virtually) to contribute toward a $20,000 meeting goal. By the end of the meeting, directors had contributed nearly $30,000 to the foundation. One hundred percent of contributions to RRF go to help disaster victims meet short-term housing needs.

Board Actions

Culture Transformation Plan

On Sunday, NAR’s Executive Committee considered 11 recommendations of the Culture Transformation Commission. Under its new authority to approve policy, the committee approved 10 of the recommendations and sent one to the Board for consideration. (Note: According to the new governance process, the Executive Committee can refer decisions to the Board when needed. Because this recommendation was broad-reaching, the committee decided it should have more eyes on it.)

Directors approved the final recommendation, which requires that NAR develop and conduct annual training to reinforce expectations and accountability policies, and that all NAR volunteers and staff recommit annually to understanding and adhering to all policies and procedures related to accountability.

For an explanation of all 11 recommendations, see “Executive Committee, Board of Directors Approve Plan to Enhance NAR Culture.”

Campaign and Election Rules

Directors approved changes to the association’s Campaign and Election Rules Manual to strengthen the vetting process for NAR elected and appointed office. The changes include required social media audits for elected and appointed officer candidates and broader media audits for candidates for president-elect, first vice president and treasurer to help ensure NAR is aware of any circumstances that could reasonably represent a source of embarrassment or liability to the association.

In other changes to the Campaign and Election Rules Manual, Directors:

  • Moved up the application submission period for those seeking NAR elected office to Jan. 1 – April 1. (Currently, the period runs March 1 – June 1.) The change will allow the Candidate Audit Workgroup and Credentials and Campaign Rules Committee (CCRC) more time to complete potential candidate audits and hear appeals before the Aug. 1 notification of eligible candidates, when campaigning begins.
  • Established a process that allows potential candidates for elected office to make a good-cause challenge to up to three CCRC members to be replaced by randomly selected past CCRC members when the candidates feel there is a conflict of interest or lack of impartiality in an appeal hearing.
  • Established a process for investigating potential breaches of confidentiality by a potential candidate or CCRC member. The investigation would be conducted by outside counsel and would be presented to a panel of past presidents for determination of any discipline.
  • Amended applications for elected and appointed office, and outlined a process for investigating potentially false information, to ensure the truthfulness of candidates’ applications.
Professional Standards

Directors approved an amendment to Standard of Practice 11-2 which refers to the fiduciary duty of REALTORS® working as agents or subagents. Since many states have enacted statutory or regulatory duties to supersede the common law term “fiduciary,” the amendment adds the phrase “or applicable agency duties required by law.”

Constitution Change: Commercial Representation

The Board of Directors voted in favor of an amendment to Article V, Sec. 1 of the NAR Constitution that would require that commercial practitioners make up a minimum of 10% of the NAR Executive Committee. The rationale for the change is that it serves the commercial pillar of NAR’s strategic plan and ensures inclusivity for an important segment of the membership. Constitutional changes must be noticed to and approved by the Delegate Body, so the Delegate Body will consider this change at its 2025 meeting at NAR NXT in Houston.

Delegate Body Actions

Following the Board of Directors meeting, NAR’s Delegate Body approved an amendment to Article 4 of the Code of Ethics. The amendment—designed to ensure the Code provides clarity on conflicts of interest and protects buyers, sellers, lessors and lessees—was approved by the Board at its May 9, 2024, meeting. At that meeting, the Board also approved new Standards of Practice 4-1 and 4-2, but those changes didn’t require a Delegate Body vote. The changes take effect on Jan. 1, 2025.

The Delegate Body also considered a Leadership Team proposal to add a representative from the Canadian Real Estate Association (CREA) to the Executive Committee. Ultimately, the delegates approved recommendations by the Executive Committee and Board of Directors to refer the matter back to the Leadership Team for further consideration.

Executive Committee Actions

The National Association of REALTORS®' Executive Committee took action on more than three dozen actions related to culture, budget, copyright protection and more during a two-day weekend meeting at NAR NXT, The REALTOR® Experience.

Summary of Approved Recommendations

Culture Transformation Committee
  • That NAR create an accountability awareness campaign to ensure members, association executives and staff understand how to access NAR policies and procedures, including reporting processes related to prohibited behavior
  • That each NAR policy related to conduct establish a transparent disciplinary framework for infractions
  • That the Extended Leadership Team, Executive Committee, Regional Vice Presidents, Committee Chairs and Committee Vice Chairs complete an anti-retaliation training annually that clearly defines NAR's anti-retaliation policy
  • That NAR regularly administer culture and accountability surveys to NAR volunteers and staff
  • That NAR establish culture and accountability bodies for NAR volunteers and staff
  • That NAR enhance online resources for state and local associations to support compliance and accountability
  • That NAR establish a unified set of values for NAR volunteers and staff
  • That NAR Leadership Summit and Camp focus more on direct leadership training and building critical skills
  • That chairs and vice chairs of NAR committees and NAR staff leaders complete communications skills training
  • The elimination of one-year presidential initiatives
Broker Engagement Committee
  • To amend the purpose and structure of the Broker Engagement Committee by adding regional representation, at-large members and Small Broker Committee representation
  • To sunset the Broker Engagement Council
  • To amend the composition of the Idea Exchange Council for Brokers
Finance Committee (went to the Board of Directors and were approved)
  • That a membership figure of 1,400,000 serve as the basis for dues revenue in the 2025 budget
  • That the 2025 operating, advocacy, and ad campaign and capital expenditures budgets be approved as proposed
Commercial Committee (went to Board of Directors and was approved)
  • To amend the Executive Composition to ensure that a minimum of 10% of the Executive Committee is comprised of commercial members
Federal Taxation Committee
  • To support tax incentives to reduce financial barriers for adapting homes for people with special needs
  • To support tax incentives to assist first-time homebuyers to save funds for down payment and closing costs
Federal Technology Policy Committee
  • That NAR support strong copyright protection for original works created by or for real estate professionals, their firms, multiple listing services, and any affiliated entities or associations
  • That NAR support cyber security legislative and regulatory initiatives
  • That NAR support comprehensive federal data privacy legislative and regulatory proposals
Global Business and Alliances Committee
  • Global Ambassador and Global Coordinator appointment term length adjustments
Insurance Committee
  • Revision of committee purpose, composition amendments, and clarification of qualifications to serve on the committee
Legal Action Committee
  • Six recommendations for funding cases of importance in the industry and proposals for the 2025 NAR Insurance Program
Member Accountability Committee
  • Three recommended amendments related to Leadership Pledge, Gifts and Favor Policy, and Personal Relationship Policy
Professional Standards Committee
  • Four recommendations to amend the procedures in the Code of Ethics and Arbitration Manual outlining the timelines for appeals and procedural reviews of ethics and arbitration decisions (one of the recommendations went to the Board of Directors, who had ultimate authority over the change)
Leadership Team Report
  • Outside organization representative appointments
Credentials and Campaign Rules Committee
  • Amendments to the Campaign and Election Rules Manual

Summary of Recommendations Referred to the Board of Directors 

Culture Transformation Committee
  • That NAR develop an annually required training to reinforce expectations and accountability policies, and that all NAR volunteers and staff annually recommit to understanding and adhering to all policies and procedures related to accountability (subsequently approved by the board)

Summary of Recommendations Referred Back to Committee

Conventional Financing and Policy Committee
  • Support of certain shared-equity models for the purchase of residential, owner-occupied housing
Leadership Team Report
  • Recommendation to add a representative from the Canadian Real Estate Association to Executive Committee

Summary of Rejected Recommendations

Commercial Committee (also considered and rejected by the Board of Directors)
  • One member of the Executive Committee shall be a representative from a commercial structure, independent of the minimum 10% commercial representation requirement
Leadership Identification and Development Committee
  • That any member appointed to the Chair or Vice Chair position of a committee, advisory board, advisory group or council must be currently serving or have served on that committee, advisory board, advisory group or council in the past three years

Source: Special Report from the November 11, 2024 Board of Directors Meeting