What Else is New? More Ethics & Arbitration Changes Effective June 5

Dear Shannon: I’m the professional standards administrator for one of the local associations in Florida. One of our ethics instructors said you gave a presentation at the Florida Realtors® Convention in August and noted that there were additional changes to the Code of Ethics and Arbitration Manual beyond the 11 Standards of Practice.  Can you please share what else is new?

Dear What Else Is New: Yes, there are more changes to the Code of Ethics and Arbitration Manual in addition to the changes to the 11 Standards of Practice (SOP).  Here’s what else is new as of June 5, 2025:

Settlement related amendment to Policy Statement #31 (underscoring indicates additions, strikeouts indicate deletions) “Cooperation” defined: The obligation to cooperate, established in Article 3 of the Code of Ethics, relates to a REALTOR®’s obligation to share information on listed property and to make property available to other brokers for showing to prospective purchasers when it is in the best interest of the seller. An offer of cooperation does not necessarily include an offer to compensate a cooperating broker. Compensation in a cooperative transaction results from either a blanket offer of subagency made through MLS or otherwise, or offers to compensate buyer agents, or, alternatively, individual offers made to subagents or to buyer agents, or other arrangements as negotiated between listing and cooperating brokers prior to the time an offer to purchase is submitted. (Amended 11/09)

Amendments to Appendix I to Part Ten, Arbitrable Issues & to Appendix II to Part Ten, Arbitration Guidelines

Numerous changes (many settlement related) were made to these sections in the Code of Ethics and Arbitration Manual, including:

• Replacing ‘Boards’ with ‘Associations’
• Eliminating language related to offers of comp via an MLS
• Clarifying procuring cause language
• Replacing ‘commission’ with ‘compensation’

Amendments to Multiple Case Interpretations

Numerous settlement related changes to NAR Case Interpretations including;

• Eliminating language (or deleting Case Interpretations) related to offers of comp via an MLS
• Eliminating language (or deleting Case Interpretations) related to SOP changes/deletions

Administrative amendment to Model Schedule of Fines Related to Article 4 Changes from January 1, 2025

Failing to disclose REALTOR®s present or contemplated ownership or other interest in writing to the purchaser or their representative all parties to the transaction.

Amendments Regarding “President’s Designee” provide for administrative clean up from last year’s changes. Similar amendments to the following sections of the Code of Ethics and Arbitration Manual:

• Section 20(a),
• Appendix V to Part Four,
• Section 47(a),
• Appendix V to Part Ten

Similar amendments to the above listed sections of the Code of Ethics and Arbitration Manual:

Questions about when informal dispute resolution began or ended will be determined by the Board President or the President’s designee in consultation with the Professional Standards Administrator. The filing deadline shall also be suspended during any period when the respondent does not hold REALTOR® or REALTOR ASSOCIATE® membership.

Adoption of Model Ethics Mediation Agreement and there’s a New Form called: Agreement to Mediate (Ethics)

Additional Administrative & Settlement related Changes

Approval was given to allow NAR staff to:

• administratively change “board” to “association” and
• “commission” to “compensation” throughout the Code of Ethics and Arbitration Manual
  • and related guidance documents when appropriate.

Note: changes impact how you look up words in the Manual

Do not expect NAR to print updated hard copies of the Manual mid-year. Please frequently visit NAR’s 2025 Code of Ethics & Standards of Practice page for ongoing updates.

Shannon Allen is an attorney and Florida Realtors Director of Local Association Services

Note: Advice deemed accurate on date of publication

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