Clarification of the REALTOR’s Code of Ethics, Article 10, SOP-5 was approved at the recent NAR Legislative Meetings

Article 10

Standard of Practice 10-5 now reads:

REALTORS®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities shall not harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

As used in this Code of Ethics, harassment is unwelcome behavior directed at an individual or group based on one or more of the above protected characteristics where the purpose or effect of the behavior is to create a hostile, abusive, or intimidating environment which adversely affects their ability to access equal professional services or employment opportunity. (Adopted and effective November 13, 2020, Amended 1/23 and 6/25)

Overall, there were three basic changes, summarized by Matt Difanis, chair of the workgroup that first proposed the revision.

1. A change to Policy Statement 29 in the Code of Ethics and Arbitration Manual now states that “REALTORS® may only be subject to disciplinary action under the Code with respect to their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities.” This marks a change from the previous expansion in November 2020 to make REALTORS® subject to discipline with respect to all of their activities.

2. A similar change within the wording of Standard of Practice 10-5 limiting applicability to REALTORS®’ “capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities.”

3. Tying Standard of Practice 10-5 to the term “harass.” Aside from being thoroughly fleshed out in various other NAR documents, Standard of Practice 10-5 explicitly states that “[a]s used in this Code of Ethics, harassment is unwelcome behavior directed at an individual or group based on one or more of the above protected characteristics where the purpose or effect of the behavior is to create a hostile, abusive, or intimidating environment which adversely affects their ability to access equal professional services or employment opportunity.”

The result is an improved framework that improves clarity and objectivity. To the extent that the scope is now limited by the new “capacity” requirement, other tools (such as sanctions for violation of membership duties) are in place to address egregious cases that may not otherwise meet the “capacity” requirement in the Code.

While the clarification of Article 10-5 was made to the Code of Ethics, The Ohio Canons of Ethics states the following:

SECTION I: General Duties to the Public and Industry

Article 1

Licensing as a real estate broker or salesman indicates to the public at large that the individual so designated has special expertise in real estate matters and is subject to high standards of conduct in the licensee’s business and personal affairs. The licensee should endeavor to maintain and establish high standards of professional conduct and

integrity in dealings with members of the public as well as with fellow licensees and, further, seek to avoid even the appearance of impropriety in any activities as a licensee.