T
he National Association of REALTORS® (NAR) is a federation of local, state, and national associations working together to support its members' businesses and amplify their voices. In August, NAR's Leadership Summit brought together executives at all levels to share ideas about effective association management and how to position the REALTOR® organization to meet the evolving needs of its members. The three-way agreement, a nearly 100-year-old organizational structure, is effective at supporting members' businesses and amplifying their voices. It streamlines Code of Ethics adherence and accountability on all three levels and creates alignment around member communications, benefits, and advocacy efforts. This agreement's framework enables NAR, state, and local organizations to mobilize in a unified way, adding power and urgency to the REALTOR® voice. It also grants local and state associations the use of the term "REALTOR®."

    The three-way agreement, adopted in 1927, establishes NAR's structure as a federation or union of organizations. Any member of a local REALTOR® association is also a member of their state association and the national association. This structure enhances NAR's effectiveness in lobbying for the health of the $3.7 trillion housing industry and private property rights around the country. The three-way agreement also brought order to an industry in need of overarching ethical and professional standards guidelines. It has been the gold standard of professionalism in the industry since NAR adopted it in 1913.

    A holistic approach on the local, state, and national levels has enabled NAR to overcome hurdles and best serve its members, including through the rollout of recent practice changes following NAR's proposed settlement agreement to resolve litigation brought by home sellers. NAR has created many resources for its members, developed with the input and feedback of state and local associations. These resources can be found at facts.realtor. NAR also provides the Accredited Buyer’s Representative (ABR®) designation course to members at no cost through the end of the year.

    These tools were useful in the creation of at least one state law. Grasso says New Jersey REALTORS® "looked at the settlement as a challenge," to make written buyer agreements the standard. They worked diligently to get legislation passed and signed into law that mandated written buyer agreements by Aug. 1. The resources made available to them from NAR, particularly at facts.realtor, were a tremendous resource for them to utilize when crafting their legislation in New Jersey.