Professional Standards Committee Appendix 4

May 13, 2010

Policy Consideration

Proposed amendments to Article 10.

Background Information

Article 10 of the Code of Ethics provides:

REALTORS® shall not deny equal professional services to any person for reasons
of race, color, religion, sex, handicap, familial status, or national origin.
REALTORS® shall not be parties to any plan or agreement to discriminate
against a person or persons on the basis of race, color, religion, sex, handicap,
familial status, or national origin. (Amended 1/90)

REALTORS®, in their real estate employment practices, shall not discriminate

against any person or persons on the basis of race, color, religion, sex, handicap,
familial status, or national origin.
(Amended 1/00)

The four Standards of Practice that interpret and explain Article 10 provide:

• Standard of Practice 10-1

When involved in the sale or lease of a residence, REALTORS® shall not

volunteer information regarding the racial, religious or ethnic composition of
any neighborhood nor shall they engage in any activity which may result in
panic selling, however, REALTORS® may provide other demographic
information. (Adopted 1/94, Amended 1/06)

• Standard of Practice 10-2

When not involved in the sale or lease of a residence, REALTORS® may

provide demographic information related to a property, transaction or
professional assignment to a party if such demographic information is (a)
deemed by the REALTOR® to be needed to assist with or complete, in a
manner consistent with Article 10, a real estate transaction or professional
assignment and (b) is obtained or derived from a recognized, reliable,
independent, and impartial source. The source of such information and any
additions, deletions, modifications, interpretations, or other changes shall be
disclosed in reasonable detail. (Adopted 1/05, Renumbered 1/06)

• Standard of Practice 10-3

REALTORS® shall not print, display or circulate any statement or

advertisement with respect to selling or renting of a property that indicates
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May 13, 2010 Page 2

any preference, limitations or discrimination based on race, color, religion,

sex, handicap, familial status, or national origin. (Adopted 1/94, Renumbered
1/05 and 1/06)

• Standard of Practice 10-4

As used in Article 10 “real estate employment practices” relates to employees

and independent contractors providing real estate-related services and the
administrative and clerical staff directly supporting those individuals.
(Adopted 1/00, Renumbered 1/05 and 1/06)

At the 2009 Annual Convention the Professional Standards Committee received an August 10,
2009 letter (attached as Appendix 4A) from the Wisconsin REALTORS® Association that
provides, in relevant part:

The Equal Opportunities in Housing Committee of the Wisconsin REALTORS®

Association believes the time has come to once more amend the Code to ensure
that REALTORS® do not deny equal professional services to any persons seeking
to sell, buy or rent real property based upon their sexual orientation.

As various members of the WRA Committee have commented, in Wisconsin we

don’t really even think about sexual orientation discrimination because it has
been illegal under our state law since 1982. Since that time, 20 other states plus
the District of Columbia have passed laws banning discrimination based upon
sexual orientation and/or gender identity/expression (see attached map).
However, in other states there are no such laws and it not illegal for REALTORS®
in those states to discrimination in the provision of housing and real estate
services based upon sexual orientation, as illustrated by the instance reported in
the attached Dallas Voice article from May 8, 2009, and in the attached
information about the New York landlord and real estate broker who refused to
rent to a same-sex couple.

REALTORS® hold themselves to higher professional standards. REALTORS®

should not discriminate against any person seeking their services as they look for
a place to live – it is wrong and a poor business decision as well. This is not
about personally endorsing lifestyles, but rather about ensuring that all people
are treated equally and fairly when it comes to housing and the provision of real
estate services.

Therefore, the WRA Equal Opportunities in Housing Committee proposes that

NAR amend Article 10 of the Code of Ethics to prohibit REALTORS® from
denying equal professional services, being party to a plan or agreement to
discriminate, or discriminating in real estate employment practices based upon
sexual orientation.
Professional Standards Committee Appendix 4
May 13, 2010 Page 3

The WRA letter also proposes that the National Association seek to have the federal Fair
Housing Act amended to include sexual orientation as protected class.

Attached as Appendix 4B is a September 28, 2009 letter from the New York State Association of
REALTORS® recommending “. . .that Article 10 of the REALTOR® Code of Ethics be amended
by inserting the following new language after national origin, including all federal, state and
local protected classes.”

Article 10 has, since its adoption, mirrored the protected classes in the federal fair housing law.
On a number of occasions the Professional Standards Committee has entertained suggestions that
the scope of Article 10 be expanded beyond those protected classes. In 2000-2001 consideration
was given to a proposal by the Washington, D.C. Association of REALTORS® that Article 10 “.
. . be expanded to include all protected classes in the jurisdiction in which an association
operates. . .”. After lengthy, deliberate consideration the Committee chose not to recommend
amendments to Article 10, but did amend Section 13 of the Code of Ethics and Arbitration
Manual to empower local and state associations to take disciplinary action where a REALTOR®
is found to have violated federal, state or local fair housing laws. When the proposal was
discussed in 2000 and 2001, both the Equal Opportunity/Cultural Diversity Committee and the
Professional Standards Committee were concerned that the proposed change would result in
Article 10 losing its consistency and clarity, and meaning something different from state to state,
and from one association to another.

Both the WRA and the NYSAR letters were discussed at length at the October, 2009 meeting of
the Interpretations and Procedures Subcommittee. The Subcommittee concluded that NAR,
through its various deliberative bodies including the Equal Opportunity/Cultural Diversity
Committee and the Professional Standards Committee, should consider whether Article 10
should be expanded as suggested by the Wisconsin REALTORS® Association. To that end, the
Subcommittee asked that those committees and the state and local associations be advised of the
proposal to add “sexual orientation” to Article 10 and that their input be sought and considered;
that information about state and local laws and regulations addressing discrimination based on
sexual orientation be obtained and considered; and that any related existing NAR policy
positions be identified so they can be taken into account as consideration of the proposed change
to Article 10 proceeds.

At the 2009 Annual Convention meeting of the Professional Standards Committee,

Interpretations and Procedures Subcommittee Chair Bill Lublin updated the Committee on the
WRA and the NYSAR proposals. He noted that the Subcommittee had initially concluded that
NAR, acting through its various deliberative bodies, should consider whether Article 10 should
be amended as suggested by the Wisconsin Association. He also mentioned that information
would be gathered on laws related to discrimination based on sexual orientation; that efforts
would be made to identify any relevant existing NAR policy positions; and that any resulting
recommendation would be presented to the Committee at the next meeting.

It should be noted that at the 2009 Annual Convention, the Equal Opportunity-Cultural Diversity
Committee recommended that NAR support equal opportunity in housing on the basis of sexual
Professional Standards Committee Appendix 4
May 13, 2010 Page 4

orientation. An excerpt from that committee’s agenda is attached as Appendix 4C. The minutes
of the Equal Opportunity-Cultural Diversity Committee include the Committee’s
recommendation:

“That NAR support equal housing opportunity on the basis of sexual

orientation.”

The explanatory accompanying rationale goes on to provide:

The Obama Administration has signaled its intent to announce proposals

ensuring that HUD’s housing programs are open to all regardless of sexual
orientation or gender identity. The National Association of REALTORS® has a
long record of supporting equal opportunity in housing. Its support of equal
opportunity is based on color, religion, sex, national origin, handicap, and age.
The intent of this policy recommendation is to update that listing to include sexual
orientation. Discrimination based on sexual orientation, as with other forms of
discrimination, inhibits the ability of REALTORS® to provide their clients with the
best possible housing choices in real estate markets nationwide.

When presented to the NAR Board of Directors at the 2009 Annual Convention, the Equal
Opportunity-Cultural Diversity Committee’s proposal was amended at the recommendation of
the Executive Committee. The motion approved by the NAR Board of Directors provides:

That existing NAR policy on equal housing opportunity be amended to include

opposition to discrimination based on sexual orientation.

Information regarding state laws prohibiting discrimination on the basis of sexual orientation
and/or gender identity is attached as Appendix 4D; a February 15, 2010 letter from the
Wisconsin REALTORS® Association is attached as Appendix 4E; and a February 16, 2010 letter
from the Pennsylvania Association of REALTORS® proposing amendments mirroring those
offered by the New York State Association of REALTORS® in their September 28, 2009 letter is
attached as Appendix 4F.

The issue was discussed further at the March, 2010 meeting of the Interpretations and Procedures
Subcommittee, and the Subcommittee’s recommendations to the Professional Standards
Committee appear below.

Action / Recommendation of the Committee

Possible Recommendation #1:

That Article 10 of the Code of Ethics be amended as follows (underscoring indicates additions,
strikeouts indicate deletions):
Professional Standards Committee Appendix 4
May 13, 2010 Page 5

REALTORS® shall not deny equal professional services to any person for reasons
of race, color, religion, sex, handicap, familial status, or national origin, or
sexual orientation. REALTORS® shall not be parties to any plan or agreement to
discriminate against a person or persons on the basis of race, color, religion, sex,
handicap, familial status, or national origin, or sexual orientation.

REALTORS®, in their real estate employment practices, shall not discriminate

against any person or persons on the basis of race, color, religion, sex, handicap,
familial status, or national origin, or sexual orientation.

Possible Recommendation #2:

That Standard of Practice 10-3 be amended as follows (underscoring indicates additions,

strikeouts indicate deletions) subject to the proposed amendments to Article 10 being approved
by the Delegate Body at the 2010 Annual Convention:

REALTORS® shall not print, display or circulate any statement or advertisement

with respect to selling or renting of a property that indicates any preference,
limitations or discrimination based on race, color, religion, sex, handicap,
familial status, or national origin, or sexual orientation.

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