10.3 Professional Organizations – NAR, State Board, and Local Board

Company policy is that every active licensed associate becomes a member of the National Association of REALTORS® and several State and local Associations of REALTORS® throughout the nation. The Company is affiliated with many local boards of REALTORS® in each State it conducts business in and is consistently joining new boards that its Associates prefer. Referral agents do not need to join any local Association of REALTORS® or the National Association of REALTORS® if they only work on a referral basis and do not actively carry out sales.

Professional organizations such as the National Association of REALTORS® and its local affiliates are also concerned about many of the same issues as the State Regulators. However, the focus of these organizations is often on the more practical issues of how its members present themselves to the public and how its members deal with each other. Therefore, these professional organizations also focus on ethical issues relating to:

• Advertising.

• Multiple listing service internal rule violations.

• Conflicts of interest between its members.

• Ethical conduct with respect to clients and customers.

• Ethical conduct with respect to the general public.

• Ethical conduct with respect to other REALTORS®.