NAR MEETING REPORT
November 8, 2008
Orlando, Florida
Motions approved by NAR Professional Standards Committee:
1. Time on market / new listings:
An informational white paper dealing with "days on market" and "new listing" issues will be published on REALTOR.org to provide guidance to associations of REALTORS® and MLSs.
2. New Case Interpretation for Article 12/Subsequently established firm:
A new case interpretation related to Article 12, as interpreted by Standard of Practice 12-12, was adopted. In the case, the broker of a new firm, Up North Real Estate, filed an ethics complaint against one of the partners for firm XYZ, alleging violation of Article 12, because the firm had previously registered the domain name "upnorthrealestate.com." Even though SOP 12-12 prohibits REALTORS® from registering URLs or domain names which, if used, would present less than a true picture, the hearing panel determined that at the time firm XYZ registered the domain name, "upnorthrealestate.com", it was not similar to the name of any other area real estate company. The panel also noted that if it had been used, the domain name would have satisfied Article 12's true picture requirement since it would have simply suggested to consumers that it was a source of property information in that geographic area.
3. New Case Interpretation for Article 12/Registering competitors' domain names:
A second new case interpretation related to Article 12, as interpreted by Standard of Practice 12-12, was also adopted. In this case, REALTOR® X had previously registered domain names mirroring the names of other real estate brokerage firms in her area. The hearing panel determined that REALTOR® X had violated Article 12, as the wording of Standard of Practice 12-12 bars REALTORS® from registering URLs or domain names which, if used, would present less than a true picture. The panel noted that the very act of registering a URL or domain name which, if used, would present an untrue picture, is all that is required to violate Article 12.
4. New Case Interpretation for Article 12/Prior borker retains agent's domain name:
A third new case interpretation related to Article 12, as interpreted by Standard of Practice 12-12, was also adopted. In this case, REALTOR® P was the broker-owner of a firm that offered its agents comprehensive benefits, including indivdual websites and personalized domain names for each sales associate. When one of the agents left the firm, the domain name using the agent's name remained the property of the firm, as specified in the contract between the agent and the firm. The agent filed an ethics complaint against REALTOR® P, alleging violation of Article 12 as interpreted by Standard of Practice 12-12. The hearing panel concluded that REALTOR® P was not in violation of Article 12, because her registration of a domain name that used the agent's name occurred with the knowledge and consent of the agent; at the time of registration, use by REALTOR® P's firm satisfied Article 12's true picture requirement; and that REALTOR® P had ceased any use of the domain name at the time the agent left the firm. The decision also noted that while the Code of Ethics did not require REALTOR® P to transfer the domain name to the agent, domain name registrations must be renewed periodically and a future renewal of the domain name by REALTOR® P would violate Article 12 if that domain name does not reflect a true picture at the time of renewal.
5. New Case Interpretation for Article 12/Slightly misspelled domain name:
A fourth new case interpretation related to Article 12, as interpreted by Standard of Practice 12-12, was also adopted. In this case, REALTOR® V registered and used domain names that, while similar to the names of the five largest residential brokerage firms in the area, each was spelled slightly differently than those firms' actual names. In short order, complaints were filed against REALTOR® V by REALTORS® from each of the five largest firms. The hearing panel concluded that each of the "slightly misspelled" domain names were so similar to the names of REALTOR® V's competitors that reasonable consumers would readily conclude they would lead consumers to those firms' respective websites. As REALTOR® V's "misspelled" domain names would mislead reasonable consumers, REALTOR® V was found in violation of Article 12.
6. Quadrennial Ethics Training:
Professional Standards Policy Statement #48, Quadrennial REALTOR® ethics traning, Code of Ethics and Arbitration Manual, was amended for clarification only, and did not contain any substantive changes.
7. Standard of Practice 1-5/Disclosing the source of offers:
Standard of Practice 1-15 is amended as follows (underscoring indicates new language):
REALTORS® , in response to inquiries from buyers or cooperating brokers shall, with the sellers' approval, disclose the existence of offers on the property. Where disclosure is authorized, REALTORS® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating borker. (Adopted 1/03, Amended 1/06)
8. Notice by e-mail:
A recommendation of the Interpretations and Procedures Subcommittee was referred back to the Subcommittee for further review and development of the policies and procedures to permit associations, as a matter of local discretion, to send hearing notices, where feasible, by email.
9. Confidentiality of Ethics Decisions
The Interpretations and Procedures Subcommitee recommended that the policy requiring confidentiality of ethics decisions be amended to allow notification of the ethics decision when disclosure is necessary to ensure compliance with association bylaws or other governance provisions. That recommendation was referred back to the Subcommittee for further review.
10. CCIM Institute Training:
Any REALTOR® successfully completing the CCIM Institute's mandatory on-line ethics training program is deemed to have satisfied NAR's quadrennial Code of Ethics training obligation.
