Procedure for Changing an Association's Jurisdiction

An Association seeking "unassigned" territory is required to confirm with the State and National Associations the availability of such territory. An Association that desires to change its jurisdiction must complete an Application for Change of Jurisdiction and submit it along with the required documentation to the National Association for consideration (see below). The Association shall also forward a copy of the application (and supporting materials) to the State Association for its information.

The Membership Policy and Board Jurisdiction Committee shall not consider a contested application for change of jurisdiction involving unassigned territory if, within a period of two (2) years prior to the date the application is received, the committee has denied an application from the same association for the same territory.

If the territory is "unassigned", the Association must:

• Complete the Application for Change of Jurisdiction including a written description of the new territorial jurisdiction resulting from the change in jurisdiction.
• Submit a map sufficiently detailed to clearly indicate the present territory of the association, the "unassigned" territory requested (and all associations contiguous thereto), outlining each in contrasting color.
• Provide letters to all associations that are contiguous to the requested territory, and all Designated REALTORS® (principals) with offices in the requested territory who are at-large members of the state association, advising of the proposed change of territorial jurisdiction (Sample Notification Letter). The purpose of this notice is to determine if there are objections to the application or competing claims for the territory by other associations. Associations (and Designated REALTOR® principals) 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.

If the proposed change of jurisdiction is "uncontested" and the file of supporting materials is complete, the change of jurisdiction shall be administratively approved and NAR's jurisdiction records shall be updated accordingly. The applicant Association and State Association shall be notified in writing following final approval.

State Associations shall be notified in all instances where a change of jurisdiction has been approved by the National Association (either administratively or through a contested hearing process).

If there are objections to the application by other associations; competing claims for the territory by other associations; or if a majority of the Designated REALTORS® (principals) who are at-large members of the state association in the unassigned territory object to the application; all parties shall have the opportunity to appear before a Hearing Panel of the National Association's Membership Policy and Board Jurisdiction Committee to present their respective positions. The applicant association shall have at least thirty (30) days to request a hearing before the Membership Policy and Board Jurisdiction Committee.

In the event the applicant association requests a hearing by the Membership Policy and Board Jurisdiction Committee, all parties may submit a written statement and supporting documentation of up to thirty (30) pages to support their request or objection. Written statements should contain only that information relevant to the National Association’s consideration of the dispute. The written statement should include documents and other evidence upon which the association intends to rely in any hearing by the National Association. Only those bases and issues raised in the written statement(s) may be raised by the parties in any hearing before the Committee. Parties to the dispute should make every effort to avoid submitting information that is extraneous or irrelevant.

The National Association shall provide the parties with notice and instructions on requesting NAR sponsored mediation. Mediation is mandatory.

A mediator shall be selected from a pool of former or current members of the Membership Policy and Board Jurisdiction Committee identified by the Chair who have completed NAR's Mediator/Mediation Training Seminar or similar mediation training. A mutually convenient time shall be established for the mediation. Mediation will be conducted using video conferencing services.

This does not preclude the parties from continuing efforts locally or through their state Association to resolve the dispute.

Access a list of available mediators.

The duration, nature, scope and conduct of any hearing shall be within the discretion of the Chairman. Committee staff shall advise all parties in advance of the date, time and place of the hearing and the procedures to be followed at the hearing. All parties will have the opportunity to submit additional written arguments and documentation approximately fourteen (14) days prior to any scheduled hearing. In no event shall the Committee be required to conduct a hearing unless it has received the complete written file (application, notice to contiguous associations, and letters to Designated REALTORS® with any responses received, and the written statements of the parties) at least sixty (60) days prior to the next regularly scheduled meeting of the Committee.

The applicant association is required to have a representative participate in jurisdiction hearings either in person or through video conferencing services. Objecting parties are strongly encouraged, but not required to have representatives at jurisdiction hearings.

Speakers shall be limited to current association members, association staff, and legal counsel. In hearings involving objections to an application for unassigned territory, the burden of proof shall be on the applicant association to establish that the disputed area would be better served if assigned to the association. Jurisdiction hearings are not “legal” proceedings or “trials” and are not subject to the customary rules applicable to judicial proceedings such as rules of evidence or cross examination of the other associations’ presenters.

The following is a list of factors that may be considered by a hearing panel. This list is not all inclusive and is intended to guide panels as to the facts, issues, questions and other considerations that may facilitate their reaching fair, equitable and reasoned decisions. These factors should be carefully considered by parties preparing written materials and oral presentations for hearing panels.

1. What is the association’s “service area” (i.e., the geographical area encompassing members’ offices, and the offices of other REALTOR® firms who purchase association services without holding membership locally under Board of Choice)? (An area shall not be deemed to be part of an association’s service area unless applicant demonstrates that a reasonable number of member offices or other offices of REALTOR® firms who purchase association services are located in that area.)
2. To what extent does the association represent real estate interests in the unassigned area?
3. Is the unassigned area naturally aligned with the association’s common service area? Are there natural boundaries separating the association from the unassigned area (e.g., rivers, lakes, mountain range, et cetera) Is the unassigned area viewed as being more closely aligned with a particular association because of boundaries such as political districts, school districts, area codes, et cetera?
4. What type of real estate comprises the unassigned area? Does this differ from the basic make-up of the remaining association territory?
5. How will REALTORS® and potential members in the unassigned territory be better served? Do a majority of REALTORS® (principals) in the requested area support the application?

The hearing panel may approve the application for change of jurisdiction in whole or in part or may deny approval of the application in which case the territory will remain unassigned. In hearings involving competing claims for unassigned territory, hearing panels shall determine which applicant association (if any) is best qualified to serve the area in dispute. The decision of the Hearing Panel will be final, except that either party may file a request for procedural review of the decision to the NAR Board of Directors based only on alleged procedural deficiencies or other irregularities the party believes constitutes a deprivation of due process. Requests for procedural review shall be considered in accordance with the procedure established by the Board of Directors. Find more information on requesting a procedural review.

Disputes Regarding "Unassigned" Territory

If there are objections to the application by other associations; competing claims for the territory by other associations; or if a majority of the Designated REALTORS® (principals) who are at-large members of the state association in the unassigned territory object to the application; all parties shall have the opportunity to appear before a Hearing Panel of the National Association's Membership Policy and Board Jurisdiction Committee to present their respective positions. The applicant association shall have at least thirty (30) days to request a hearing before the Membership Policy and Board Jurisdiction Committee.

When an existing Association releases a portion of its territory to another existing Association or to form a proposed new Association, this changes the existing Association’s territorial jurisdiction and the existing Association is required to:

• Complete an Application for Change of Jurisdiction form including a written description of the new territorial jurisdiction resulting from the change in jurisdiction.
• Submit a map sufficiently detailed to clearly indicate the present assigned territory and the territory being released, outlining each in contrasting colors.
• Submit a description of the released territory. The description of the released territory should be dated and signed by the President of the releasing Association.

Note: When an existing Association releases a portion of its territory to another existing Association, either voluntarily or involuntarily, this changes the territorial jurisdiction of both Associations and both Associations must submit all items listed above.

When an existing Association submits a "clarification" of its boundaries (i.e., a restatement of its territorial jurisdiction with no substantive change in assigned territory), the Association is required to:

• Complete an Application for Change of Jurisdiction form including a written description of the new territorial jurisdiction resulting from the change in jurisdiction.
• Provide notice to all contiguous associations to determine if there are any objections to the proposed clarification of boundaries. Associations shall have a reasonable time to respond (not less than 45 days) and copies of all notices (and any replies) shall be submitted with the application.

Contested Application for Change of Jurisdiction (“Assigned Territory”)

When an Association seeks assignment of additional territory presently assigned to another Association, or when an applicant group seeks formation of a new Association partially within the assigned jurisdiction of an existing Association or Associations, and the existing Association having jurisdiction is unwilling to relinquish the requested territory, this causes the Application for Change of Jurisdiction to be a "Contested Application" and must be handled as set forth in the Contested Application Procedures.