Professional Services strengthens and enhances the level of professionalism in our industry through education and a formalized complaint process.
Ethics Questions
Whenever possible we try to educate and advise REALTOR® members before a potential problem spins out of control. Staff is available to answer general real estate questions, advise on good business practices, or simply to lend another perspective to your situation. If a problem cannot be resolved informally, there is a complaint process for educating and disciplining members who are found in violation of rules. Have an ethics question? Click here.
Complaint Process
The Grievance Committee handles initial review of formal written complaints and determines if the rules apply. If the rules apply to the case, it is forwarded to the Professional Standards or Arbitration Committee for further consideration. The Professional Standards Committee provides the panels that hear evidence and issue decisions in each disciplinary complaint. The Arbitration Committee provides an alternative dispute resolution system to resolve commission or other business disputes involving REALTORS®.
What is a REALTOR®?
The word REALTOR® is a registered collective membership mark that identifies an individual as a real estate professional who is a member of the National Association of REALTORS® (NAR). When an individual member joins the Northern Virginia Association of REALTORS® (NVAR), he or she is agreeing as a condition of membership to follow the rules that govern members' professional conduct. These rules include, but are not limited to, the Code of Ethics and Standards of Practice of the National Association of REALTORS®, NVAR Entrycard Rules and Regulations that govern the use of the lockbox system, and NVAR Bylaws. As a voluntary trade association, NVAR develops and maintains rules that go beyond the minimum standards required by law. NVAR members are committed to working together to create a higher standard of integrity and service for the industry.
NAR Reminder: Be Cautious on Characterizing Admin Fee
In light of a recent federal district court ruling against a brokerage's administrative fee as a RESPA violation, brokers should take precautions in how they characterize their compensation, NAR General Counsel Laurie Janik says in a memo on the court's decision. Section 8(b) of the Real Estate Settlement Procedures Act (RESPA) prohibits charging a fee that's not tied specifically to a service.
As interpreted by the court decision, an administrative fee to help offset operating and other costs is unearned because it connects to no specific service. NAR's position is that this misconstrues the RESPA provision and the association has asked HUD for clarification, but that clarification is still pending.
Brokers should clearly indicate that any flat fee in addition to a percentage-based commission they charge represents payment for services provided by the brokerage. These combined amounts should be disclosed in the 700 section of the HUD-1 as the broker's compensation. NAR regulatory staff are also preparing an analysis of the court decision.