New Member Association Formation

Below is the procedure to establish a new Member Association of the National Association of REALTORS®, including a Local Association Checklist, State Association Checklist, and required forms that must be completed and filed with the Member Experience team of the National Association.

Questions concerning the new Member Association formation procedure can be directed to NAR’s Member Experience team at 1-800-874-6500, xt 8399, or via email.

Download (DOC: 35 KB)

Requirements to Establish a New Member Association of the National Association of REALTORS®

The formation of a new Member Association of REALTORS® starts at the local level, proceeds to the State Association and then to the National Association of REALTORS® where the final determination is made.

The following criteria for the establishment of a New Member Association of REALTORS® govern the acceptance and consideration by the Membership Policy and Board Jurisdiction Committee of an application for Charter status as a constituent Member Association:

The following forms and items must be submitted to the State Association for review and recommendation prior to transmittal to the National Association for its required approval:

Application for Member Association Status: This form must be completed in duplicate, signed by the proposed Association's President and Secretary, and considered by the State Association. The recommendation of the State Association must be dated and signed by the State President and forwarded to the National Association. The application form is attached at the bottom of the screen.
Agreement to Use the Term REALTOR® in Name of Member Association: This form must be completed in duplicate and signed by the proposed Association's President and Secretary. When and if the proposed Association is approved by the National Association, the President and Secretary of the National Association will sign the agreement and provide a copy to the new Association for its official records.

Note: There are two (2) forms of the Agreement to Use the Term REALTOR® in the name of local Association, one for incorporated Associations and the other for unincorporated Associations. The proper form must be utilized consistent with the Association's intended corporate status. It is strongly recommended that the proposed new association consider incorporation.
Description of Territorial Jurisdiction: A detailed description of the requested territorial jurisdiction must be placed on the application form, or it may be submitted as a addendum to the application form if insufficient space exists on the form. The description must specify either the town(s), cities, counties or the metes and bounds comprising the jurisdiction.
Map of Territorial Jurisdiction: A detailed map must be submitted to indicate the territorial jurisdiction requested. The entire boundaries of the requested territorial jurisdiction should be outlined in a distinctive color on the map.
Release of Territory: If a portion of an existing Member Association's territory is being requested, a written release from the existing Member Association must be included with the territorial jurisdiction description. The release of territory by another Member Association is a "Change of Jurisdiction" and, as such, requires that the Association releasing the jurisdiction, complete an application for a change of jurisdiction, and follow the procedures specified.
Notice to Adjoining Member Associations: Notice must be sent to adjoining member associations to advise them of the proposed association's application. The purpose of this notice is to determine if there are competing claims for the territory. Associations shall have reasonable time to respond to the notice (not less than 45 days) and copies of all notices (and any replies) shall be submitted with the application.
Multi-State Jurisdiction: A new association application requesting assigned territorial jurisdiction in more than one state must include any agreement between affected state associations concerning state membership for REALTOR® members of the newly formed association. Where there is no agreement to the contrary between affected state associations, current NAR policy provides that REALTORS® holding primary membership will hold state membership in the state association where their office is located. Applicant associations are encouraged to discuss and resolve this issue with affected state associations early in the formation process. A copy of the agreement between state associations or, alternatively, written notification that no agreement exists must be included with the new association application.
Proposed Name of New Association: Names selected by new associations and applications for change of name submitted by existing associations are considered based on policy established by the NAR Board of Directors. To view the name change criteria and procedures on nar.realtor go to Association Name Change Procedure.
Proposed Bylaws of New Association: The proposed Member Association's Bylaws must be submitted with the application to the National Association for review and approval to ensure compliance with the policies of the National Association. Model Board Bylaws are available on nar.realtor at Model Bylaws for Local Boards.
Membership List: A roster of charter members and firms must be submitted with the application.
Membership Dues: NAR dues shall be prorated from the beginning of the month in which the application is approved by the NAR Board of Directors.
45-Day Requirement: All requests to place items on the agenda for consideration by the Board Jurisdiction Committee for its subsequent recommendation to the Board of Directors and all required forms of application and supporting documentation must be received in the Chicago office of the National Association at least 45 days prior to the next regularly scheduled meeting of the Committee.
Core Standards Compliance: A new association application must include an executed certification acknowledging the duties imposed and resources necessary to comply with Core Standards. Download (DOC: 19 KB)

Local Association Checklist

Application for Membership signed where applicable by President and Secretary.
Agreement to Use the Term REALTOR® signed where applicable by President and Secretary
Jurisdiction description
Map of proposed jurisdiction of new association
Copies of letters to adjoining associations advising formation of new association, and copies of any replies
Copy of agreement regarding state membership or written confirmation that no agreement exists. (Applies only to proposed new associations requesting assigned territorial jurisdiction in more than one state.)
Copy of proposed association's bylaws
Roster of charter members
Core Standards Certification Form
Required forms and supporting documents submitted to the State Association for review and approval of its Directors

State Association Checklist

A review of submitted forms and supporting documents of the proposed New Member Association.
Submission of the proposed New Member Association's Application to the State Association's Directors for a favorable or unfavorable recommendation to the National Association
Completion of State Association's portion of the Application, dated and signed by State President.

Submission of the forms and all supporting documents to the National Association's Chicago office no later than 45 days prior to the next meeting of the Membership Policy and Board Jurisdiction Committee for its consideration and recommendation to NAR's Board of Directors for its approval.