NAR Code of Ethics and Standards of Practice

The National Association of REALTORS(R) (NAR) is the sole governing and administering body. The Code of Ethics is a living document created and maintained by NAR, and membership in NAR is contingent upon agreeing to abide by it. The certification exam tests comprehension of NAR's official Code and Standards, and the association sets all criteria for certification, including eligibility, exam content, and renewal requirements.

A state license is a legal minimum requirement to practice real estate, demonstrating knowledge of state law and general practices. The NAR Code of Ethics certification is a voluntary, higher standard exclusive to REALTORS(R). It focuses specifically on the enforceable ethical duties that go beyond the law, governing professional conduct, duties to clients and the public, and the business relationships between REALTORS(R). It is a mark of professional commitment within the REALTOR(R) organization.

The exam tests your understanding of the mandatory obligation to arbitrate certain business disputes (primarily commission-related) with other REALTORS(R) through the association's facilities, as outlined in Article 17. It covers the conditions under which arbitration is required versus optional, the procedures for filing a request, and the ethical duty to mediate in good faith before proceeding to arbitration. Scenarios often involve determining if a dispute is arbitrable and the proper parties to a proceeding.

Fair Housing is a central pillar of the Code, primarily embodied in Article 10, which prohibits REALTORS(R) from denying equal professional services or making discriminatory remarks based on protected classes. The exam requires you to apply this Article in conjunction with federal, state, and local law. Questions often involve identifying subtle forms of discrimination, understanding the duty to advocate for equal opportunity, and recognizing discriminatory practices in advertising, representation, and property evaluations.

The greatest challenge is navigating the intricate boundaries of fiduciary loyalty (Article 1), particularly in dual agency scenarios or when dealing with customers versus clients. The exam presents complex situations where the duty of confidentiality, obedience, full disclosure, and accounting may conflict or require careful prioritization. Candidates must discern the precise action required to uphold the client's best interests while remaining in strict compliance with all other Articles of the Code.