The National Association of Realtors (NAR) is an American

trade association A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association partic ...

for those who work in the

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...

industry. It has over 1.4 million members, making it one of the biggest trade associations in the USA including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial

industries. The organisation holds a U.S. trademark over the term " realtor", limiting the use of the term to its members. NAR also functions as a

self-regulatory organization A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could exist in place of government regulation, or applied in addition to governmen ...

for real estate brokerage. The organization is headquartered in

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...

Overview

National Association of Realtors building (Washington DC)

The National Association of Realtors was founded on May 12, 1908 as the ''National Association of Real Estate Exchanges'' in Chicago, Illinois. In 1916, the National Association of Real Estate Exchanges changed its name to The National Association of Real Estate Boards. The current name was adopted in 1972. NAR's members are residential and commercial

real estate broker A real estate agent or real estate broker is a person who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and ag ...

s, real estate salespeople, immovable property managers, appraisers, counselors, and others engaged in all aspects of the real estate (immovable property) industry, where a state license to practice is required. Members belong to one or more of some 1,600 local realtor boards or associations. They are pledged to a code of ethics and standards of practice, which were adopted in 1913. The National Association of Realtors is also a member of

The Real Estate Roundtable The Real Estate Roundtable is a non-profit public policy organization based in Washington, D.C. that represents the interests of real estate. It focuses on policy areas governing tax, capital and credit, environment and energy, and homeland s ...

, a lobbying group in Washington, D.C.

Trademark

The NAR holds a U.S.

trademark A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from ot ...

over the term " realtor" and several related terms. The organisation's

style guide A style guide or manual of style is a set of standards for the writing, formatting, and design of documents. It is often called a style sheet, although that term also has multiple other meanings. The standards can be applied either for gene ...

states that "the preferred form of the term is REALTOR—in all caps, and using the registered trademark symbol". The use of the term "realtor" was first proposed by Charles N. Chadbourn, in an article in the '' National Real Estate Journal'' in March 1916. Accessed April 3, 2015. Chadbourn, then a real estate agent in

Minneapolis Minneapolis () is the largest city in Minnesota, United States, and the county seat of Hennepin County. The city is abundant in water, with thirteen lakes, wetlands, the Mississippi River, creeks and waterfalls. Minneapolis has its origin ...

and vice-president of the National Association of Real Estate Boards, wrote "I propose that the National Association adopt a professional title to be conferred upon its members which they shall use to distinguish them from outsiders. That this title be copyrighted and defended by the National Association against misuse... I therefore, propose that the National Association adopt and confer upon its members, dealers in realty, the title of ''realtor'' (accented on the first syllable)." The association adopted the term the following year, at its national convention in New Orleans in April 1916. In 1949, the National Association of Real Estate Boards obtained U.S. registration no. 515,200 for "realtors" as a

collective trademark A collective trademark, collective trade mark, or collective mark is a trademark owned by an organization (such as an association), used by its members to identify themselves with a level of quality or accuracy, geographical origin, or other charac ...

for real estate brokerage services. In 1950, it obtained a second registration, registration no. 519,789, for "realtor", in the same field. NAR has since obtained registrations for the term in such fields as electronic lock-boxes, clothing, and jewelry. The 515,200 and 519,789 registrations have been subject to a number of cancellation proceedings: *In June 1998, Arleen Freeman, a real estate agent who had formerly been an NAR member, petitioned the

U.S. Patent and Trademark Office The United States Patent and Trademark Office (USPTO) is an agency in the U.S. Department of Commerce that serves as the national patent office and trademark registration authority for the United States. The USPTO's headquarters are in Alex ...

(USPTO) to cancel both registrations.
Arleen Freeman v. Nat'l Ass'n of Realtors
', cancellation nos. 27,885, 27,885, U.S. Patent and Trademark Office, Trademark Trial and Appeal Board 64 U.S.P.Q.2d 1700 (June 18, 2002) In June 2002, the USPTO's Trademark Trial and Appeal Board (TTAB) held that, because Freeman was a former member of NAR and a licensee of the trademarks, she was

estopped Estoppel is a judicial device in common law legal systems whereby a court may prevent or "estop" a person from making assertions or from going back on his or her word; the person being sanctioned is "estopped". Estoppel may prevent someone from ...

from bringing a proceeding to cancel them under the doctrine of licensee estoppel. *In November 2001, Jacob Zimmerman, a student who was not a member of NAR, petitioned the USPTO to cancel the registrations, on the ground that "realtor" and "realtors" were generic terms rather than a trademark.
Jacob Zimmerman v. Nat'l Ass'n of Realtors
', cancellation nos. 92032360, 92040141, U.S. Patent and Trademark Office, Trademark Trial and Appeal Board, 70 U.S.P.Q.2d 1425 (March 31, 2004) On March 31, 2004, the TTAB denied the petition, finding on the evidence before it that the term was not generic. *In March 2015, Jeffrey Schermerhorn petitioned to cancel the 519,789 registration.
Jeffrey Schermerhorn v. Nat'l Ass'n of Realtors
', cancellation no. 92061031, U.S. Patent and Trademark Office, Trademark Trial and Appeal Board (filed March 9, 2015; decided March 30, 2016) Schermerhorn alleged fraud under ''Torres v. Cantine Torresella S.r.l.'' as well as genericness, arguing that "

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such as

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Instagram Instagram is a photo and video sharing social networking service owned by American company Meta Platforms. The app allows users to upload media that can be edited with filters and organized by hashtags and geographical tagging. Posts can ...

and Google Plus" provides additional evidence of generic use that was not available at the time of the ''Zimmerman'' proceeding. On March 30, 2016, the TTAB granted the NAR's motion to dismiss the petition on the ground that Schermerhorn, who had been a NAR member and licensee at the time he submitted his petition to cancel, was also estopped from challenging the mark.

NAR and Multiple Listing Service (MLS) systems

The NAR governs the hundreds of local Multiple Listing Services (MLSs) which are the information exchanges used across the nation by real estate brokers. (However, there are many MLSs that are independent of NAR, although membership is typically limited to licensed brokers and their agents; MLSPIN is an example of one of the larger independent MLSs in

North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and th ...

.) Through a complicated arrangement, NAR sets the policies for most of the Multiple Listings Services, and in the late 1990s, with the growth of the Internet, NAR evolved regulations allowing Internet Data Exchanges (IDX) whereby brokers would allow a portion of their data to be seen on the Internet via brokers' or agents' websites and Virtual Office Websites (VOW) which required potential buyers to register to obtain information. These policies allowed participants—whether they were individual one-person brokers or large regional companies—to limit access to some or all of the MLS data by individual brokers (whether they were brokers operating solely on the Internet or local competitors). In 2005, this prompted the Department of Justice to file an

antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...

lawsuit against NAR alleging its MLS rules in regard to these types of limitations on the display of data were the product of a conspiracy to restrain trade by excluding brokers who used the Internet to operate differently from traditional

brick-and-mortar Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases r ...

brokers. (For a description of the DOJ action, see ''Antitrust Case filings for US v. National Association of Realtors''.) Meanwhile, various real estate trends such as expanded consumer access and the

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...

are consolidating existing local MLS organizations into larger and more statewide or regional MLS systems, such as in California and Virginia/Maryland/Washington DC's Metropolitan Regional Information Systems. In response to the case, NAR had proposed setting up a single Internet Listing Display system which would not allow participants to exclude individual brokers (whether of a bricks-and-mortar type or solely internet-based) but require a blanket opting out of display on ''all other brokers'' sites. This system became the IDX system. Although IDX allows the public to view MLS listings, it still requires the listing brokerage information to be placed on the listing every place it appears (brokers legally "own" the listings of their brokerage), to prevent misrepresentation of the listing information, and to place accountability for the information on the broker as the law dictates. The antitrust lawsuit was settled in May 2008.Bartz, Diane
Realtors to open listings to settle lawsuit
''Reuters''. 2008-05-27. Retrieved 2008-05-27. The agreement mandates that all Multiple Listing Service systems allow access to Internet-based competitors.Jordan, Lara Jakes
Settlement opens listings to online real estate agents
''

Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. new ...

''. '' The Mercury News'', Silicon Valley. 2008-05-27. Retrieved 2008-05-27. The NAR will be required to treat online brokers the same as traditional brokers and cannot exclude them from membership because they do not have a traditional business model.Lichtblau, Eric
Realtors Agree to Stop Blocking Web Listings
''

The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...

''. 2008-05-28. Retrieved 2008-05-27. The NAR admitted no wrongdoing, and it paid neither fines nor damages as part of the deal. The settlement will not be official until a federal judge formally approves it, most likely in 2008. While the general counsel of the NAR believes that the settlement will have no effect on the commission paid by the general public, a business professor at Western Michigan University predicted that the increased competition would cause a 25 to 50 percent decrease in commissions. Another major anticompetitive practice is supported (indirectly) by various state laws which prohibit the "sharing" of commissions with unlicensed individuals. In broad interpretations, this is deemed to prevent a buyers' agent from providing a credit to his or her buyers from commissions received. Currently, there are 10 states where real estate agents and brokers are barred from offering homebuyers or sellers cash rebates or gifts of any kind with a cash value more than $25. Various realtors in such states have successfully contested this interpretation in states which now allow the practice (notably, Patrick Lea, a realtor in Ohio, and numerous agents in Kentucky). The Kentucky case was ultimately tried with the United States Department of Justice as the plaintiff and the Kentucky Real Estate Commission as the defendant. In 2019, The National Association of Realtors’ board approved the Clear Cooperation Policy. A policy that requires brokers to submit a listing to the Multiple Listings Service within one business day of marketing a property to the public.

Lobbying

The NAR wields substantial power as a lobbying organization. Since 1999, the NAR has spent more than $99,384,108, and spent $22,355,463 in 2011 alone. It has consistently ranked among the largest Political Action Committees in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

. In its 2016 figures,

OpenSecrets OpenSecrets is a nonprofit organization based in Washington, D.C., that tracks data on campaign finance and lobbying. It was created from a merger of the Center for Responsive Politics (CRP) and the National Institute on Money in Politics (NIMP) ...

ranked the National Association of Realtors as the 2nd largest top spender in lobbying after the U.S. Chamber of Commerce. The NAR spent $64,821,111 in 2016. On the total spending, the largest share—46%—has gone to Republicans, and 30.8% has gone to Democrats. Key political issues for the group revolve around federal de-regulation of the financial services industry.

Enabling the subprime mortgage crisis

Some experts believe that brokers and realtors bear at least partial responsibility for the

subprime mortgage crisis The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the col ...

, purposefully inflating the perceived market values of homes, and subsequently encouraging buyers to take out larger mortgages than needed. The theory is that collusion with mortgage lenders enabled realtors to earn high volumes of commission on borrowed money for inflated house values with no risk to the realtors. Many victims feel that home buyers were tricked into taking out larger loans to buy more expensive homes, and the higher sales prices paid the realtors higher commissions. This practice is not considered "unethical" by the NAR which claims to be a

Self-regulatory organization A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could exist in place of government regulation, or applied in addition to governmen ...

; however, obvious implications show extensive and substantial harm rendered to the public. Many victims are encouraging the

Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

to begin aggressively regulating agents and refunding overpayments to homebuyers.

Antitrust lawsuits

In 2005, the

United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...

filed a formal complaint against the National Association of Realtors for violating Section 4 of the

Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. ...

. The complaint sought to enjoin the National Association of Realtors "from maintaining or enforcing a policy that restrains competition from brokers who use the Internet to more efficiently and cost effectively serve home sellers and buyers, and from adopting other related anticompetitive rules. The DOJ challenged NAR's MLS rules that inhibited competition from Internet-based brokers. On November 18, 2008 the Court entered a Final Judgment approving a settlement against NAR. Under the Final Judgment, the NAR agreed to the policies challenged by the United States and replaced those policies with rules that do not discriminate against brokers who use the Internet to provide low-priced brokerage services to consumers. In 2012, American Home Realty Network, Inc. the operator of NeighborCity filed antitrust counterclaims in response to a pair of copyright lawsuits, alleging that the "copyright lawsuits filed against it by two multiple listing services with financial backing from the National Association of Realtors are part of a concerted effort by NAR to drive the company out of business and eliminate it as a provider of services to real estate brokers." The counter-claims also allege that the copyrights asserted were never properly registered. In the Minnesota case, which recites claims against the NAR but does not directly name the NAR as a counter-defendant, AHRN filed a second amended counterclaim adding Edina Realty and Home Services of America as Counter-Defendants in the antitrust and unfair competition claims.

Edina Realty Edina Realty Home Services, based in Edina, Minnesota, is a Berkshire Hathaway affiliate and a wholly owned subsidiary of HomeServices of America, Inc. Edina Realty is the largest real estate company in Minnesota by sales volume and transaction s ...

is a subsidiary of HomeServices of America, Inc., a Berkshire Hathaway company, which owns real estate brokerage firms in states across the country, including

Minnesota Minnesota () is a state in the upper midwestern region of the United States. It is the 12th largest U.S. state in area and the 22nd most populous, with over 5.75 million residents. Minnesota is home to western prairies, now given over t ...

Maryland Maryland ( ) is a state in the Mid-Atlantic region of the United States. It shares borders with Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware and the Atlantic Ocean t ...

North Carolina North Carolina () is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. The state is the List of U.S. states and territories by area, 28th largest and List of states and territories of the United ...

, Georgia,

Washington Washington commonly refers to: * Washington (state), United States * Washington, D.C., the capital of the United States ** A metonym for the federal government of the United States ** Washington metropolitan area, the metropolitan area centered o ...

Oregon Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...

Arizona Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...

Rhode Island Rhode Island (, like ''road'') is a U.S. state, state in the New England region of the Northeastern United States. It is the List of U.S. states by area, smallest U.S. state by area and the List of states and territories of the United States ...

Connecticut Connecticut () is the southernmost state in the New England region of the Northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, New York (state), New York to the west, and Long Island Sound to the ...

Iowa Iowa () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States, bordered by the Mississippi River to the east and the Missouri River and Big Sioux River to the west. It is bordered by six states: Wiscon ...

Nebraska Nebraska () is a state in the Midwestern region of the United States. It is bordered by South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Kansas to the south; Colorado to the sout ...

Ohio Ohio () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Of the List of states and territories of the United States, fifty U.S. states, it is the List of U.S. states and territories by area, 34th-l ...

Illinois Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Rock ...

Kansas Kansas () is a U.S. state, state in the Midwestern United States, Midwestern United States. Its Capital city, capital is Topeka, Kansas, Topeka, and its largest city is Wichita, Kansas, Wichita. Kansas is a landlocked state bordered by Nebras ...

South Carolina )''Animis opibusque parati'' ( for, , Latin, Prepared in mind and resources, links=no) , anthem = " Carolina";" South Carolina On My Mind" , Former = Province of South Carolina , seat = Columbia , LargestCity = Charleston , LargestMetro = ...

Missouri Missouri is a state in the Midwestern region of the United States. Ranking 21st in land area, it is bordered by eight states (tied for the most with Tennessee): Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas t ...

Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...

Indiana Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th ...

Kentucky Kentucky ( , ), officially the Commonwealth of Kentucky, is a state in the Southeastern region of the United States and one of the states of the Upper South. It borders Illinois, Indiana, and Ohio to the north; West Virginia and Virginia ...

Alabama (We dare defend our rights) , anthem = " Alabama" , image_map = Alabama in United States.svg , seat = Montgomery , LargestCity = Huntsville , LargestCounty = Baldwin County , LargestMetro = Greater Birmingham , area_total_km2 = 135,7 ...

, and

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

. Earlier in 2012, the mid-Atlantic multiple listing service Metropolitan Regional Information Systems, Inc. (MRIS) and St. Paul, MN-based Regional Multiple Listing Service of Minnesota Inc. (NorthstarMLS) filed copyright claims against NeighborCity. The National Association of Realtors said it would provide financial support for NorthstarMLS and MRIS legal expenses. Another lawsuit was filed in March 2019 challenging NAR's compensation policies which require all member brokers demand blanket, non-negotiable buyer-side commission fees when listing a home on a Multiple Listing Service (MLS).

Specializations

NAR educational requirements and recognized designations

Realtors, as members of NAR, also have the option of studying for additional certifications in a variety of specialties, several of which are backed by NAR with offerings of certification and update courses available nationwide. The most well known NAR sponsored designations are the following: *Accredited Buyer Representative (ABR) *Accredited Land Consultant (ALC) *

Certified Commercial Investment Member A Certified Commercial Investment Member (CCIM) is a recognized expert in the disciplines of commercial and investment real estate. The designation is awarded by the CCIM Institute, formerly known as Commercial Investment Real Estate Institute (CI ...

(CCIM) *

Certified Property Manager Certified Property Manager (CPM) is a real estate professional designation awarded by the Institute of Real Estate Management An institute is an organisational body created for a certain purpose. They are often research organisations (research ...

(CPM) *Certified Real Estate Brokerage Manager (CRB) *Certified Residential Specialist (CRS) *Certification for Internet Professionalism ( e-Pro) *Certified International Property Specialist (CIPS) *Counselor of Real Estate (CRE) *Graduate of the Realtor's Institute (GRI) *Real Estate Professional Assistant (REPA) * Seniors Real Estate Specialist (SRES) *

Society of Industrial and Office Realtors The Society of Industrial and Office REALTORS (SIOR) is an international professional commercial and industrial real estate association based in Washington, D.C., Washington, D.C. It offers a professional designation (SIOR) to commercial brokers a ...

(SIOR)

Consumer outreach

The NAR launched HouseLogic.com in February 2010 in an attempt to reach consumers directly for the first time. Beyond establishing that bond with consumers, the goal of the site is to provide education—with much commercial interests—to consumers about investing in their homes. NAR produces the radio show ''Real Estate Today'', which is distributed by Westwood One.Real Estate Today - Westwood One
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Other national real estate associations

* Canadian Association of Accredited Mortgage Professionals *

Canadian Real Estate Association The Canadian Real Estate Association (CREA; , ACI) is a trade association that represents real estate brokers, agents, and salespeople in Canada. CREA's membership includes over 130,000 individuals, working through 90 real estate boards and ass ...

* National Association of Estate Agents * National Association of Real Estate Brokers

References

External links

* {{DEFAULTSORT:National Association Of Realtors Real estate companies established in 1908 Real estate industry trade groups Organizations based in Washington, D.C. 1908 establishments in the United States Real estate in the United States 501(c)(6) nonprofit organizations Lobbying organizations in the United States