faq

Answer: The dues formula calls for assessment of REALTOR® dues computed on the basis of the size of the REALTOR®’s organization, i.e., on the number of individuals licensed with the REALTOR®. Designated REALTOR® dues are computed by the base amount plus an amount as determined times the number of individuals licensed with the REALTOR® who do not hold Membership in the Board. A credit setoff against the Designated REALTOR’s dues obligation is provided for each individual licensed with that REALTOR® who voluntarily holds REALTOR® Membership as a matter of personal option and election. It must be clearly understood that the designated REALTOR® is not paying dues for individuals affiliated with him who elect not to be Board Members. They are not Board Members and therefore have no dues payable to the Board. Any benefits or Board services that such licensees realize accrue to them solely through their relationship with the designated REALTOR® and are not provided to them directly by the Board. Rather the designated REALTOR® pays his/her dues and not the dues paid for others as computed on the number of individuals licensed with him/her, but who are not Members of the Board. Further, an individual shall be deemed to be licensed with a REALTOR® if the license of the individual is held by a REALTOR® or by an entity in which the REALTOR® has a direct or indirect ownership interest and which is engaged in soliciting and/or referring clients or customers to the REALTOR® for consideration on a substantially exclusive basis, provided that such licensee is now otherwise included in the computation of dues payable by the principal partner or corporate officer of the entity. It does not make any difference if the individual is actively working or not; if the license is held with the REALTOR®, dues are still payable to the Board.

Answer: The Board(s) to which the REALTOR® belongs. If a real estate firm maintains Designated REALTORS® in more than one Board, each Designated REALTOR® shall be responsible (per the certification provision in the Board's bylaws) for providing the Board(s) where they hold Designated REALTOR® membership with a list of names of any non-member licensees affiliated with their office(s) and indicate in which Board the licensee will be included for purposes of computing the DR dues. The following are examples of how the dues formula should be administered: Example #1 A broker (sole proprietor) has a single office located in Board A's jurisdiction but chooses Board B as his/her primary Board. -- DR assessments for non- member licensees in the office would be paid to Board B since this is the only Board where the broker (DR) holds membership. NOTE: This same principle would apply if the broker had multiple office locations in one or more Board jurisdictions but chose only one Board in which to hold membership. Example #2 Two brokers are partners in a real estate firm and have a single office located in Board A's jurisdiction. Broker #1 selects Board A as his primary Board and Broker #2 selects Board B as her primary Board. -- Each broker could be required (per the certification provision in the Board’s bylaws) to report the total number of non-member licensees in the office (i.e. those licensees who haven't joined either Board A or Board B) and indicate in which Board the licensees will be included for purposes of computing the DR dues. All non-member assessments could be paid to one Board or they could be split between the two Boards (e.g. four non-member licensees reported in Board A; six non-member licensees reported in Board B). Example #3 A real estate firm has its principal place of business in Board A with branch offices in Boards B and C. Each office has a different Designated REALTOR and each DR has selected the Board where their office is located as their primary Board. -- Each Designated REALTOR® could be required to report the total number of non-member licensees in his/her office to his/her primary Board and indicate in which Board (A,B or C) the non-member licensee(s) will be included for purposes of computing the DR dues. Non-member assessments could be remitted to any one of the Boards where the firm maintains a Designated REALTOR® (A, B or C). In the final analysis, every non-member licensee affiliated with a real estate firm will be accounted for in one of the Boards where the firm maintains a Designated REALTOR® presence. Many State Associations have indicated plans to assume a leadership role in developing licensee tracking systems and many states already provide this services through lists obtained from state real estate regulatory agencies.

Answer: An arbitrable issue is defined as a question arising out of a transaction between parties to a contract (and specific non contractual disputes as defined in Standard of Practice 17-4). To proceed with arbitration, there must be a dispute between the parties that arises out of a real estate transaction and a disagreement between the parties as to entitlement to a sum of money.

Answer: Under previous jurisdictional policies of the National Association, REALTORSÒ were required to join the board where their principal place of business is located, prior to joining any other board. The "Board of Choice" concept allows REALTORSÒ to choose the board to which they want to belong on the basis of the factors they decide are most important rather than being limited by office location or jurisdictional boundaries. At the the same time, services of other boards are available without the necessity of holding membership in those boards.

Answer: At the 1996 Midwinter Meetings, the Board of Directors approved a Statement of Membership Policy and amendments to NAR's Membership Qualification Criteria to authorize associations (at their discretion) to consider information received from other associations when determining whether an applicant satisfies the association's membership requirements. This would be a file of information that would "follow" REALTORSÒ from board to board throughout their professional career and would include information related to prior violations of the Code of Ethics or other membership duties, and information related to unpaid arbitration awards or unpaid financial obligations to other associations or MLSs. Associations are required to share this information with other associations (when so requested), and associations receiving such information may, but are not required to consider information in such files in determining whether an applicant satisfies the associations under Board of Choice that some members may shift membership from association to association to avoid accountability under the Code of Ethics and other membership duties.

Answer: Membership is available in a secondary board on terms and conditions no more stringent than the requirements established in the board's By-laws for REALTOR® and REALTOR®-ASSOCIATE (where applicable) membership. Similarly, the rights and privileges of secondary members are the same. For example, a licensee who qualifies for REALTOR® membership in a secondary board would have the same rights and privileges of any other REALTOR® member (including the right to vote and hold office). Similarly, a licensee who only qualifies for REALTOR®-ASSOCIATE membership in a secondary board (even though he/she may hold REALTOR® membership in their primary board) would only be entitled to the privileges and obligations that are granted to REALTOR® ASSOICATE in the secondary board (which may or may not include the right to vote and hold office).

Answer: No. Secondary membership may be granted to non- principal licensees who hold REALTOR® or REALTOR®-ASSOCIATE membership in their primary board without any requirement that the Designated REALTOR® they are licensed or affiliated with hold membership in the secondary board. However, MLS services are only available to secondary members if their office participates in the MLS.

Answer: Based on the Board of Choice policies approved by the Board of Directors, a firm comprised of REALTOR® Principals which has multiple office locations in the same state must operate each office as a " REALTOR®-office." Each office must have a Designated REALTOR® and each DR must have a primary board affiliation (though the same DR may be responsible for more than one office). The primary board affiliation for branch offices may or may not be the same as the board chosen by the firm's principal office.

Answer: Yes.