NAR Code of Ethics, AZDRE and Frustration

Joining WeMAR is a choice to join the largest voluntary professional membership organization representing private property rights in business and real estate in Arizona (AAR) and the Country (NAR).

Notice the word voluntary. The organization requires its members to pay dues yearly and take the Code of Ethics every 2 years. You don’t have to join in order to sell real estate, but if you join you will be required to perform these two tasks.

In order to represent another person in the sale or management of real estate in Arizona (in most cases), you will be required by state law to possess an active Arizona real estate license (broker or salesperson).

Currently, there are real estate licensees being deactivated in their WeMAR/AAR/NAR membership because they have failed to take, or submit proof of taking, a NAR approved Code of Ethics class. Several of these people are upset because they took a continuing education class in the Commissioner Standards category or a class indicating ethics in the title, submitted it to DRE and are angry WeMAR doesn’t know about it and/or it doesn’t count for NAR Code of Ethics.

The comments: “ADRE should require Code of Ethics” and “All Ethics classes should count for both CE and NAR”.

Perhaps now is a good time to review:

The DRE (Department of Real Estate) is a state regulatory entity charged with protecting the public. The Arizona Revised Statues requires persons representing others in a real estate transaction (with some exceptions) to be licensed. The Arizona State Real Estate Department decides what the requirements and costs are to be licensed. They also have the ability to penalize a licensee with fines, suspension of the license or refer for prosecution to the State Attorney General, licensees who violate state law or DRE regulations.

NAR/AAR/WeMAR is a professional organization, voluntarily joined by licensees who wish to practice real estate in a professional manner. Members agree to abide by the NAR Code of Ethics as part of their membership agreement.

You don’t need to be a member of NAR in order to practice real estate. You do need to have an active Arizona real estate license in order to practice real estate in Arizona.

As a real estate instructor, I submit a class for CE approval to the State of Arizona Department of Real Estate. I then decide if I would like that class also approved by NAR to meet the Code of Ethics requirement. In order for that class to be approved by NAR, I must make sure it meets particular class standards specified by NAR. I decide to do twice the work for my class approval in order to meet the requirements of state CE and NAR. Two organizations, with two sets of rules, my decision.

Given this, it would be wise to re-think the notion that a regulatory agency should prescribe and mandate code of ethics in order to maintain a real estate license.

First, if you fail to take the NAR Code of Ethics you can still practice real estate. Your business is not endangered.

Second, the NAR Code of Ethics preceded state laws and regulations. In fact, most state regulations are based in part or in whole on the NAR Code of Ethics.

Third, encouraging a government regulator to prescribe the voluntary relationship between a licensee and the professional organization they choose to join is inappropriate.

You are required to hold an active real estate license to conduct your real estate business.

You choose to be a professional.

@weservgad