Code of Ethics

At a time when the National Association of Realtors (NAR) is under a microscope, and honestly, for good reason, you’d think transparency would be the one thing everyone could agree on. But at this week’s NAR NXT conference in Houston, a proposed change to the Code of Ethics that would have expanded referral fee disclosure requirements was shot down. Not by the NAR Board of Directors, mind you, they passed it by a strong 84 percent margin. It was the so-called Delegate Body, which had the final say, and they said no.

The proposal would have required Realtors to disclose all referral fees, including those from lead-gen platforms like Zillow and other “partners,” and to obtain written client consent when receiving any kind of rebate, profit, or compensation from referrals. Right now, the rules only require disclosure of commissions, leaving referral fees largely out of sight. The change would have closed that gap.

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Rob Hahn recently ignited an important conversation about the National Association of REALTORS® (NAR) decision to significantly modify Standard of Practice 10-5, a rule initially established to prevent harassment based on protected characteristics. While NAR’s move to restrict 10-5’s scope solely to REALTORS’ professional activities has been welcomed as a step toward safeguarding free speech, Hahn highlights another critical dimension needing attention: restitution for those previously penalized under its broader interpretation.

According to Hahn, now that NAR acknowledges the overreach of the initial rule, it owes apologies and possibly reparations to REALTORS previously sanctioned under it. As Hahn emphasizes, individuals like Brandon Huber, Wilson Fauber, Chad DeVries, and Jamie Haynes faced serious professional and personal repercussions for actions now clearly outside the revised scope of harassment. These repercussions included damaged reputations, career setbacks, and financial losses from legal defenses. Hahn calls for immediate revocation of any sanctions, restoration of membership, and financial reparations to make these individuals whole.

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The National Association of REALTORS® (NAR) is set to consider revisions to Standard of Practice 10-5 at its upcoming June 2025 Board of Directors meeting. These proposed changes aim to address longstanding concerns about the scope and enforcement of the standard, which prohibits REALTORS® from using harassing speech, hate speech, epithets, or slurs based on protected characteristics.

Since its adoption in 2020, SOP 10-5 has been criticized for potentially infringing on members’ freedom of speech, particularly in contexts unrelated to their professional real estate activities. Notably, there have been instances where REALTORS® faced disciplinary actions for expressing personal religious beliefs outside of their professional roles. For example, Wilson Fauber, a Virginia REALTOR® and ordained minister, was found in violation of SOP 10-5 after reposting a Bible verse on his personal Facebook page. The post, which supported the biblical view of marriage, led to ethics complaints and potential penalties, including fines and loss of REALTOR® membership .

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