Key Takeaways
- REALTORS® must follow a strict Code of Ethics for professionalism.
- NAR members benefit from advocacy and market research resources.
- Not all real estate agents are REALTORS® with NAR membership.
- NAR influences real estate policy to aid home buyers and sellers.
Article Summary
The National Association of REALTORS® (NAR) is a real estate trade organization. It owns the registered trademark REALTOR®, a designation representing trade group members who adhere to its strict Code of Ethics.
National Association of REALTORS®: Explained in Plain English
The National Association of REALTORS® (NAR) is the largest trade association in the United States, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries. Founded in 1908, NAR supports real estate professionals through various means, including advocacy, education, and market research.
A significant aspect of the National Association of REALTORS® is its ownership of the REALTOR® trademark. REALTOR® is not a synonym for a real estate agent; it is a registered trademark that refers specifically to a member of the National Association of REALTORS® who abides by its Code of Ethics.
The distinction matters because not all real estate agents are REALTORS®. REALTORS® are bound by the organization's Code of Ethics and Standards of Practice, which promote honesty, integrity, and professionalism.
NAR enforces its standards, and members pledge to uphold these principles as a condition of their membership.
The National Association of REALTORS® also shapes what it means to buy and sell real estate through its lobbying efforts and influence in public policy. NAR addresses various issues affecting first-time home buyers and home affordability, from tax policies to fair housing regulations.
National Association of REALTORS®: A Real World Example
Imagine a first-time home buyer trying to buy their first home. There are a lot of real estate agents willing to represent them—over one million nationwide—but, like all professional industries, not all real estate agents are great at what they do.
To identify agents most likely to be fair and ethical, then, the buyer searches for a REALTOR®—the trademarked name for active members of the National Association of REALTORS®.
REALTORS® bring the standard qualifications of a real estate agent but then pass additional, advanced licensing exams and agree to follow the organization's strict Code of Ethics, which other real estate agents are not required to follow.
Working with a REALTOR® gives the first-time home buyer confidence that their agent will have their best interests at heart and conduct themselves ethically and professionally.
Common Questions About the National Association of REALTORS®
Get answers to frequently asked questions about NAR membership, the REALTOR® trademark, and Code of Ethics requirements.
