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I’m exercising my freedom of speech by writing about the National Association of Realtors’ insistence that their review of potentially changing the Realtor Code of Ethics, which passed intact through committee in preparation for a vote Thursday, is less about Trump’s presidential policy against DEI and more about a drop in revenue, membership and potential future legal battles.
Because let’s be real, that is what’s being pushed back on here. Privileged agents want an exception, a free pass, a Get Out of Jail Free card to do what they want to do, without suffering professional consequences.
NAR wants membership dues to cover its debts, and also wants to ensure that it’s not responsible for the actions of agents under the brand, as it can no longer afford the risk of carrying such a low professional threshold for licensing and poor training, and the results that it produces.
To increase membership numbers, NAR needs to make it more appealing to be a Realtor. And who wants to be a Realtor and pay dues if there are so many rules to follow? Sales is hard enough; let’s remove some barriers and get things cranking like it was 2006 and sell, sell, sell. Who cares about how it’s done? We need to get this train back on track.
The message is that NAR is willing to change its beliefs on DEI because the current state of membership is so chaotic and filled with liability that it’s willing to compromise its Code of Ethics to stay in business.
So, the trade group will continue to offer Code of Ethics training, but perhaps now, it will look the other way and not enforce it. What is the end goal here?
Past is prelude
In 2000, NAR was focused on many of the issues that remain in the spotlight today: fair housing, affordability and affiliated business agreements to ensure consumers had transparency in pricing and who was profiting, laying the groundwork for the founding of the Consumer Financial Protection Bureau.
Essentially, NAR was focused on protecting the interests of the consumers because unfair business practices and happenings were still rampant in the industry.
Since 2000, NAR has failed to address many of the problems it set out to resolve over the past 25 years. Fair housing and fair appraisals remain issues, and transparent commissions continue to be a concern, sparking daily heated arguments. Now, thanks to a series of lawsuits, the public trusts real estate agents less than ever before.
The CFPB is under attack by the current administration, and to make things even more fun, additions to the Code of Ethics that were made during the pandemic to protect consumers, along with DEI and other serious issues, are under the lens because some Realtors feel that their freedom of speech is being violated if they face professional and financial penalties from grievances filed against them under 10-5.
Thoughts and prayers for those against 10-5
I’ve prayed more than I ever have in my whole life recently, and I’ve had a tough road with religion from childhood. My frustration is that this world is a very broken and scary place.
So many people do not have a “fair” or “equal” chance; the playing field is not the same for everyone, and we all don’t have the same tools or skills or even opportunities given to us based on where we grew up, who raised us, physical health, mental health, and modern culture and politics.
I pray for the folks who use their religion as a weapon and an excuse to judge, hurt or oppress marginalized groups and the less fortunate, and that their ignorance or delusion is creating a world that is even less welcoming for current and future children.
I pray for people who are considering suicide because they do not feel welcome in this world, that they find the strength to stay, and someone who helps them understand that their worth has nothing to do with money, status, who they love or what gender they are.
I pray mostly for empathy and compassion, and especially for those in privileged positions who can help others achieve success. I pray for people to worry about their own lives and stop worrying about how others choose to live. I hope that something in the universe teaches them that diversity is what makes our communities stronger.
However, here’s the thing about thoughts and prayers: They don’t accomplish anything without action. I call my reps, I speak out against hate, and I insist on holding people accountable when they are contributing to the problem and not the solution.
That’s what 10-5 is about. It’s a ribbon of protection for consumers, and some guardrails for maintaining the Realtor brand and upholding the pledge of the Golden Rule. When NAR stepped up and created 10-5, it was because it needed to demonstrate to consumers that Realtors care and would not tolerate discrimination. NAR took action.
If the Code of Ethics doesn’t align with your personal beliefs and religious beliefs, then perhaps you should not be working with the public.
If you struggle to explain how you get paid, why you get paid, and what you charge for your work, then you may not be suited for sales with consumers. It’s just that simple. It’s not an if-then scenario when you work with the public.
The public has the right to know if you are engaging in activities on your personal time that would make them feel unsafe, discriminated against or that you don’t have their best interests at heart. They should be able to research you and know not to work with you.
Finally, even if 10-5 is changed or removed, consumers still have the right to file a grievance against you at any time for multiple reasons. If you are behaving in a way that raises questions, you will likely still be called before your governing board to explain what you were doing to warrant the call or grievance.
That’s what democracy is about. You have the total freedom to participate in and say whatever you want, but the public and the Realtor brand do not have to sit next to you while you do it, nor agree with your agenda.
Rachael Hite is a seasoned housing counselor and thought leader in the real estate industry. Connect with her on Instagram and LinkedIn.
