1. Welcome to the largest trade organziation
Member Orientation
Welcome to the largest trade organziation

2. Got a question?
Ask Your Broker!

3. Three-way Agreement National Association Of REALTORS®
Arkansas REALTORS®
Association
Local Board of
Realtors®

4. Structure & Governance National Association of REALTORS®
1.3 million members
Over 30 major policy suggesting committees
Board of directors/executive committee
Annual member meetings, May & November Convention

5. Structure & Governance National Association of REALTORS®
Chicago: all member services except political
Washington, DC: legislative and political

6. Structure & Governance Arkansas REALTORS® Association
Membership of approximately 8, out of approx. 11,000 active licensees in AR
13 committees and task forces
38 member Board of Directors
8 member Executive Committee
9 member staff

7. Structure & Governance Arkansas REALTORS® Association
Member/Local Board support
Update NAR with local and state political and market conditions
Maintain open dialogue with state and federal agencies on behalf of the members
Toll Free, or

8. So, what does all this mean to me?

9. From Our House To Your House
National Association of REALTORS®
NAR Magazine:
“Today’s REALTOR®”
Up-to-date with:
REALTOR.Org
Member discount programs

10. Arkansas REALTORS® Association
From Our House To Your House
Arkansas REALTORS® Association
ARA Newsletter:
“REALTOR® ‘Rightings”
Up-to-date with:
(some areas are secure for members)
Knowledgeable, professional staff
Call us! or

11. Educational Opportunities
National Association of REALTORS®
Mid-Year Conference in Washington D.C.
Annual Convention with over 300 educational sessions

12. Educational Opportunities
Arkansas REALTORS® Association
Graduate, REALTOR® Institute Program (GRI)
Annual State Convention featuring numerous industry speakers
CRS courses sponsored by the AR Chapter CRS
ABR Courses
Annual Forms Training to Local Boards

13. Designations & Specialized Education
Graduate, REALTOR® Institute (GRI)
Certified Residential Specialist
(CRS)
Accredited Buyer Representative
(ABR)
e-PRO

14. Designations & Specialized Education
Certified Residential Broker
(CRB)
Certified Commercial Investment Member
(CCIM)
Institute of Real Estate Management
(IREM)

15. National Association of REALTORS®
Risk Reduction
National Association of REALTORS®
Legal Action Program
Legal Liability Series

16. Video Tape
ANTI-TRUST:

17. Arkansas REALTORS® Association
Risk Reduction
Arkansas REALTORS® Association
ARA Legal HOTLINE via
Legal FAQ site ON-LINE (secure, requires sign-in)
Member discount on Real Estate Forms
Over 2400 man hours annually spent by REALTOR® volunteers on forms development

18. For the Public & for the REALTOR
National Association of REALTORS®
A staff of over 50 in Washington D.C. serving as “watchdogs” and lobbyists for YOU and Property Rights!
REALTOR® Legislative Network
REALTOR® Political Action Committee (RPAC)

19. For the Public & for the REALTOR
What can YOU do?
Understand Private Property issues
Come to the Mid-Year Conference and get to know your federal legislators
Respond to the “Calls to Action” through Action Center on Realtor.org.

20. For the Public & for the REALTOR
Arkansas REALTORS® Association
Two Contract Lobbyist at the Capitol daily
Member-driven decisions
Members kept up-to-date during the Legislative Session through ARA website
ARA is politically active year round watching out for your rights!
ARA supports members seeking elected office

21. REALTORS® Political Action Committee
RPAC
REALTORS® Political Action Committee
Allows members to help candidates who understand our industry
Helps open doors and encourages lawmakers to keep an open mind on our issues
Positions REALTORS® as legitimate players in the political arena who command respect

22. REALTORS® Political Action Committee
RPAC
REALTORS® Political Action Committee
What ARPAC is NOT!!!
Partisan
A Vote-buying vehicle

23. REALTORS® Political Action Committee RPAC’s Recent Successes:
Private property rights bill
Housing for Older Persons Act
Health insurance deduction
Maintaining mortgage interest deduction
Prevented Banks from entering the Real Estate Business

24. Arkansas REALTORS® Political Action Committee
ARPAC
Arkansas REALTORS® Political Action Committee
In 2006, ARA Lobbyist voted best in the state.
In 2006, ARA ranked 1st in spending, preparing for and lobbying for the Session

25. Arkansas REALTORS® Political Action Committee
ARPAC
Arkansas REALTORS® Political Action Committee
WHY CONTRIBUTE?
Investments in the future of your business
Tax credit on State Income Tax , not a deduction
Imagine the IMPACT magnified by over One Million REALTORS®

26. Legislative & Political
What If?
You were responsible for discovering structural defects…
You were required to research every listing neighborhood for registered sex offenders…
You had to pay sales tax on your earned fee...
You were responsible for ANY defects in a home you sold beyond required disclosure by law…

27. National Association of REALTORS®
TECHNOLOGY
National Association of REALTORS®
E-Commerce
REALTOR.Org and REALTOR.COM
Membership Records (NRDS)
Technology is best observed at NAR Convention

28. Arkansas REALTORS® Association
TECHNOLOGY
Arkansas REALTORS® Association
New Task Force named
Task Force reports on software and hardware for members
Real Estate Forms software
Interactive, full-service website
Large projects being formed now

29. The Fair Housing Act Prohibits discrimination on housing because of:
PROTECTED CLASSES
The Fair Housing Act Prohibits discrimination on housing because of:
Race
Color
Sex
Religion
National Origin
Handicap
Familial Status

30. National Association of REALTORS®
FAIR HOUSING
National Association of REALTORS®
Legal Liability Series
Fair Housing Partnership Agreement
At Home with Diversity Certification

31. Arkansas REALTORS® Association
FAIR HOUSING
Arkansas REALTORS® Association
State Fair Housing Partnership Agreement with HUD
Equal Housing Opportunity Posters provided
Staff/Officers available to speak at Local Board Meetings

32. FAIR HOUSING
FAIR
HOUSING
VIDEO

33. National Association of REALTORS®
Public Relations
National Association of REALTORS®
$50,000,000 Public Awareness Campaign
2008 and beyond
year around.

34. Arkansas REALTORS® Association
Public Relations
Arkansas REALTORS® Association
Award for Excellence
Arkansas Special Olympics.
‘House to House’ weekly column to over 320,000 households.
Over 1,000 articles and news in newspapers throughout the state annually.

35. Arkansas Special Olympics
Public Relations
Arkansas Special Olympics
ARA Becomes a Premiere Sponsor
Since 1986, ARA has raised over $1,200,000 on behalf of Special Olympics

36. Awards for Excellence Program
Public Relations
Awards for Excellence Program
Statewide program to recognize Top Producers
Based on listing, leasing and selling volume
Available in residential, commercial, and property management

37. Arkansas REALTORS® Association
Public Relations
REALTOR®-of-the-Year
Arkansas REALTORS® Association
Local Board recipients honored at Gala during Annual Convention and Trade Show. One outstanding REALTOR® named ARA Realtor® of the Year at this Gala.

38. VIDEO
CODE OF ETHICS

39. The REALTOR® Code of Ethics
New Member Orientation Program
National Association of REALTORS®

40. History and Background of the Code of Ethics
National Association of REALTORS formed in 1908.
No license laws at the time.
Real estate industry had a history of speculation, exploitation, and disorder. 2

41. History and Background of the Code of Ethics
Code was adopted in 1913 to establish a professional standard of conduct.
Code of Ethics formed the basis for license laws. 2

42. History and Background of the Code of Ethics
From its inception, the Code of Ethics required arbitration of monetary disputes between REALTORS. 2

43. Under all is the land …

44. The Preamble The Golden Rule
Widely allocated ownership” and “widest distribution of land ownership”
Maintain and improve the standards of their calling. 3

45. The Preamble
Share with fellow REALTORS a common responsibility for the integrity and honor of the real estate profession.
Strive to become and remain informed on issues affecting real estate.
Willingly share the fruit of your experience and study with others. 3

46. The Preamble
Identify and take steps to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession.
Urge exclusive representation of clients.
Do not attempt to gain any unfair advantage over competitors.
Refrain from making unsolicited comments about other practitioners. 3

47. The Preamble
If an opinion is sought about a competitor (or the REALTOR believes comment is necessary), the opinion should be offered in an objective, professional manner.
The term REALTOR stands for competency, fairness, high integrity, moral conduct in business relations.
No inducement of profit and no instruction from clients can justify departure from these ideals.
3-4

48. The Three Major Sections
Duties to Clients and Customers
Duties to the Public
Duties to REALTORS® 4

49. The Structure of the Code of Ethics
Articles
Broad statements of ethical principles.
Standards of Practice
Support, interpret, and amplify the Articles under which they are stated. 4

50. The Structure of the Code of Ethics
Case Interpretations
Specific fact situations to which the Articles and/or Standards of Practice are applied.
Only Articles of the Code can be violated, though Standards of Practice can be cited in support of an alleged violation. 4

51. Ethics or Arbitration Ethics: Basic Issue Arbitration: Basic Issue
Is there a possible violation of the Code of Ethics?
Arbitration: Basic Issue
Is there an arbitrable issue, that is, a money dispute?
Typically a dispute over which REALTOR is entitled to the cooperative commission in a transaction. 5

52. The Ethics Enforcement Process
Who can file a complaint? 5

53. The Grievance Committee
A screening committee comprised of members of the Association appointed to the committee.
Key question for the Grievance Committee:
If the allegations in the complaint were taken as true on their face, is it possible that a violation of the Code of Ethics occurred? 5

54. Professional Standards Hearing Panel
Function is to conduct a full “due process” hearing with sworn testimony, witnesses and evidence.
Hearing Panel is comprised of members of the Professional Standards Committee. 5

55. Professional Standards Hearing Panel
After conducting a hearing, the Hearing Panel decides whether there was a violation of the Code of Ethics, proven by clear, strong and convincing proof.
If the Hearing Panel finds a violation of the Code of Ethics, the Panel then determines the discipline to be imposed on the violator (respondent). 5

56. Authorized Discipline (and administrative processing fees)
Letter of Warning
Letter of Reprimand
Education
Fine not to exceed $5,000
Probation for one year or less
Suspension for not less than 30 days nor more than one year
Expulsion from membership for period of one to three years
Suspension or termination of MLS privileges
Administrative processing fee (if found in violation) not to exceed $500 (“Court Costs”) 6

57. The Arbitration Process
Request filed.
Arbitration is conducted under Article 17 of the Code of Ethics and the state arbitration statute (if any).
Arbitrate - Don't Litigate! 6

58. The Arbitration Process
Article 17 provides that arbitration occurs under the following circumstances:
Contractual disputes or specific non-contractual disputes
(see Standard of Practice 17-4);
Between REALTORS (principals) associated with different firms;
Arising out of their relationship as REALTORS 6

59. Grievance Committee
Committee performs a screening function similar to review of ethics complaints.
Key question for the Grievance Committee:
If the allegations in the request for arbitration were taken as true on their face, is the matter at issue related to a real estate transaction and is it properly arbitrable, i.e. is there some basis on which an award could be based? 6

60. Mediation
A voluntary process in which disputing parties meet with a mediator appointed by the Association to create a mutually acceptable resolution of the dispute, rather than having a decision imposed by an arbitration hearing panel. 7

61. Mediation
Mediation can occur before or after the Grievance Committee reviews requests for arbitration, depending on local Association policy.
If a dispute is resolved in mediation, the parties sign an agreement spelling out the terms of the settlement, and no arbitration hearing is held. 7

62. Professional Standards Hearing Panel
Function is to conduct a full “due process” hearing with sworn testimony, witnesses and evidence.
Hearing Panel is comprised of members of the Professional Standards Committee. 7

63. Professional Standards Hearing Panel
After the hearing, the Hearing Panel decides which REALTOR is entitled to the award (typically a disputed commission in a transaction), proven by a preponderance of the evidence.
Materials Page #7

64. Payment of the Award
Generally, the award of the Panel in an arbitration case can be judicially enforced if not paid by the non-prevailing party.
Some associations have procedures requiring that awards by deposited with the association pending review of the hearing process or during legal challenge. 7

65. NAR’s Arbitration Guidelines
Found in the Code of Ethics and Arbitration Manual.
Guidance to Hearing Panels as to how to determine procuring cause in arbitration hearings.
Also referred to as “Suggested Factors for Consideration by a Hearing Panel in Arbitration.”
Guidelines focus on “procuring cause” as the basis for resolving most commission disputes between brokers. 8

66. Key Factors in a Procuring Cause Dispute
No predetermined rule of entitlement may be established by an association.
Hearing Panels should consider the entire course of events.
Matters such as the first showing of the property, the writing of the successful offer or the existence of an agency relationship with the buyer are not, in themselves, exclusive determiners of procuring cause/entitlement. 8

67. Key Factors in a Procuring Cause Dispute
The key concepts of procuring cause are referenced in this definition from Black’s Law Dictionary, Fifth Edition:
“The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object.” 8

68. Article 1 Protect and promote the interests of the client;
This obligation to the client is primary;
But must treat all parties honestly, regardless of agency or non-agency relationship.
Standard of Practice 1-2 defines terms such as “client,” “customer,” “agent,” and “broker.” 9

69. Article 2
Disclose,
disclose,
disclose!! 11

70. Article 2
Avoid exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction;
But there is no obligation to discover latent defects, matters outside scope of license, or matters confidential under agency or non-agency relationships. 11

71. Article 9
Get it in writing!!! 13

72. Article 9 Agreements shall be in writing whenever possible;
In clear and understandable language;
Expressing the specific terms, conditions, obligations and commitments of the parties.
A copy of each agreement shall be furnished to each party upon their signing or initialing. 13

73. Article 9
Standard of Practice 9-1 requires that reasonable care be used to keep documents current by use of written extensions and amendments. 13

74. Article 12
Truth in advertising!! 14

75. Article 12
Present a “true picture” in your advertising and representations to the public.
Ensure that the professional status of REALTORS is clearly identifiable in any advertising. 14

76. Article 16
Do not engage in any practice or take any action inconsistent with the agency or other exclusive relationship that other REALTORS® have with clients.
Respect 15

77. Article 16
Examples of issues covered by Article 16 and its Standards of Practice
Innovative or aggressive business practices
Advertising/solicitations which may be received by other REALTORS clients
Solicitation of listings and agency relationships of clients of other brokers
Dealing with other brokers’ clients
Obligations when entering into exclusive relationships
Agency and/or brokerage relationship disclosure 15

78. The REALTOR Code of Ethics …
protects the buying and selling public.
promotes a competitive real estate marketplace.
enhances the integrity of the industry.
is your promise of performance.
is your promise of professionalism. 16

79. The images used herein were obtained from IMSI’s MasterClips and MasterPhotos Premium Image Collection, 1895 Francisco Blvd. East, San Rafael, CA , USA

80. Local MLS Rules and Regulations