National Association
of Realtors
The National Association of Realtors (NAR),
whose members are known as "REALTORS",
is North America's largest trade association,
representing over 1 million members (as reported
in 2006), including NAR's institutes, societies,
and councils, involved in all aspects of the
residential and commercial real estate industries.
NAR also functions as a Self Regulatory Organization
for real estate brokerage.
NAR governs the hundreds of local Multiple
Listing Services (MLSs) which are the information
exchanges used across the nation by brokers.
However, there are many MLSs that are independent
of NAR; MLSPIN is an example of one of the larger
independent MLSs in North America .
NAR's membership is composed of residential
and commercial brokers, salespeople, immovable
property managers, appraisers, counselors, and
others engaged in all aspects of the real estate
(immovable property) industry. Members belong
to one or more of some 1,600 local associations
and boards and 54 state and territory associations
of realtors. They are pledged to a strict Code
of Ethics and Standards of Practice, which includes
duties to clients, the public, and other realtors.
(see [1]). Agents and brokers are also licensed
by states.
The NAR wields substantial power as a lobbying
organization on behalf of agents and brokers.
In 2005, NAR had the largest Political Action
Committee in the United States . See [2] for
the top 20 PACs.
Through a complicated arrangement, NAR sets
the policies for most of the Multiple Listings
Services, which are essentially the information
exchanges for residential real estate. In 2005,
the Department of Justice filed an antitrust
lawsuit against NAR alleging its MLS rules were
the product of a conspiracy to restrain trade
by excluding brokers who used the internet to
operate differently. For a description of the
DOJ action, see [3]. The MLSs are to residential
real estate what NASDAQ and the New York Stock
Exchange are to securities.
Realtor - Colloquialism
Realtor is frequently used as a colloquialism
in many countries to describe any person or
company involved in the real estate trade, regardless
of their NAR status or American residence. The
word "Realtor" is a registered collective
membership mark and can only be used commercially
by National Association of Realtors members
or licensees.
