Policy Clarifications

Q: Our association was hoping to implement our Fair Housing training requirement sooner than 2025. May we? What about any other educational requirements we’d like to have locally?

A: There are two Official Interpretations of NAR Bylaws (nar. realtor/about-nar/governing-documents/nar-constitutionbylaws# Interpretations) that are relevant when it comes to any education or training that a local association wants to require as a condition of membership. Both interpretations lay out with specificity what subjects can be taught in any mandatory instructional program, and fair housing law is one.

One is Interpretation No. 18, which reads:

• “A Board rule which seeks to attain the aspirational objectives of the Code of Ethics by requiring, as a condition of Board membership, completion of an objective and non-discriminatory Indoctrination Course with a stated passing grade in an examination thereon is not an inequitable limitation on its membership.”
  
  [In other words], a board rule requiring the applicants for REALTOR® or REALTOR-ASSOCIATE® membership satisfactorily complete an objective and non-discriminatory indoctrination course covering the Constitution and Bylaws of the local Board, State Association, and National Association, the Code of Ethics of the National Association, and anti-trust laws, fair housing laws, and agency laws is not an inequitable limitation.

The other is Interpretation No. 37, which reads, in pertinent part:

• “A Board rule requiring that Board Members attend, on at least a biennial basis, a continuing education program comprised of not more than six (6) cumulative hours of instruction with respect to Board or Member practices that might result in a significant legal vulnerability and possible liability to the Board and its Members, such as violations of anti-trust laws, agency laws, civil rights laws, the Code of Ethics of the National Association, or other similar public policies, is not an inequitable limitation upon membership.”
  
  [As further explanation,] the National Association has long maintained a policy that it is inappropriate for a Board to have any mandated educational requirements other than a requirement for prospective Members or current Members to be familiar with the Constitution and Bylaws of the local Board, State Association, and National Association, the Code of Ethics of the National Association, and any rules, regulations, practices, policies or procedures of the Board that relate to being a knowledgeable and informed Member of the Board. It is not appropriate to require competency and licensure training, which is provided by the state. However, when there is a clear and present danger that policies and practices of the Board or of its Members may result in significant legal vulnerability and liability to the organization and its members, it is reasonable to require that Board Member participate in a program sponsored by the Board to assist and educate Members in areas of high legal vulnerability.
  
  Mandatory attendance should only be required at programs related to matters that, if education were not provided, might result in a significant legal vulnerability and possible liability to the Board and its members, such as violations of anti-trust laws, agency laws, civil rights laws, the Code of Ethics of the National Association, or other similar public policies.

Beyond that, you should ensure that any mandatory education your association wants to prescribe falls within the subjects listed.