National Association of Realtors

The National Association of Realtors (NAR), whose members are known as Realtors (rē(ə)ltər; -ˌtôr), 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's membership is composed of residential and commercial real estate brokers, real estate salespeople, immovable property managers, appraisers, counselors, and others engaged in all aspects of the real estate (immovable property) industry, where a state licence to practice is required. Members belong to one or more of some 1,600 local Associations of Realtors and Boards of Realtors in the 54 state and territory Associations of Realtors. They are pledged to a Code of Ethics and Standards of Practice, which includes duties to clients, the public, and other Realtors. (see [1]).

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; it is also the 3rd largest donor in the 2004 Presidential Election. See [2] for the top 20 PACs and [3] for top donors.

The National Association of Realtors is also a member of The Real Estate Roundtable, a policy group in Washington, D.C.

NAR and Multiple Listing Service (MLS) systems

The MLSs are to residential real estate what NASDAQ and the New York Stock Exchange are to securities, and NAR governs the hundreds of local Multiple Listing Services (MLSs) which are the information exchanges used across the nation by real estate brokers. (However, there are many MLSs that are independent of NAR, although membership is typically limited to licenced brokers and their agents; MLSPIN is an example of one of the larger independent MLSs in North America).

Through a complicated arrangement, NAR sets the policies for most of the Multiple Listings Services and, in the late 1990s with the growth of the internet, NAR evolved regulations allowing Information Data Exchanges (IDX) whereby brokers would allow a portion of their data to be seen on the internet via brokers' or agents' websites.

There were attempts to limit access to some or all of that data to certain brokers operating solely on the internet and, in 2005, this prompted the Department of Justice to file an antitrust lawsuit against NAR alleging its MLS rules in regard to these types of limitations on the display of data were the product of a conspiracy to restrain trade by excluding brokers who used the internet to operate differently from traditional "brick and mortar" brokers. For a description of the DOJ action, see [4]. Action is pending.

Word as colloquialism

REALTOR®, pronounced “Re-al-tor” (rē΄əl tōr), 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. However, the word REALTOR (which the NAR prefers rendered in all caps) is a registered trade mark [5] owned by the National Association of Realtors, and, if maintained, cannot be used in commerce by other parties in a way that is likely to cause confusion as to the origin, sponsorship, or approval of goods, services, or commercial activities. The NAR authorizes usage by National Association of Realtors members or licensees. See also genericized trademark.

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