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Standard of Practice 10-5 Changes: Clarity on Enforcement Actions

Standard of Practice 10-5 Changes: Clarity on Enforcement Actions

The NAR Board of Directors voted to change Article 10 of the COE and limit it to "conduct that occurs when Realtors are on the job." The decision, which some characterized as a step backward was a response to legal liabilities and is effective immediately as of the vote by the NAR Board. The vote carried with an overwhelming margin in favor.  

NAR is following up on its June 5th email regarding the amendments to Standard of Practice 10-5 ("SOP 10-5") and Professional Standards Policy Statement 29 ("PS 29").

The goal of these amendments was to create additional clarity for state and local associations as it pertains to the enforcement of the Code of Ethics. In that spirit, NAR shares the following reminders:

  • The recently announced changes do not override prior enforcement actions that were reviewed and rendered prior to June 5th.
  • For ongoing cases related to SOP 10-5 on which a decision has not yet been rendered, however, state and local associations are to use discretion when deciding to apply the amended language-or not-based on the individual circumstances of the case. For instance, a case that started the review and grievance process using the original SOP 10-5 and PS 29 language prior to June 5th should continue using them to address the Article 10 complaint. Yet, a case that arose prior to June 5th but the respective review and grievance process starts after June 5th will apply the newly amended language (SOP 10-5 and PS 29) to the Article 10 complaint.
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