Understanding NAR equips every participant in a real estate transaction—buyers, sellers and agents—with clarity on professional standards, legal protections and industry best practices. When you know what NAR represents, you can confidently choose a qualified REALTOR® who adheres to a strict code of ethics and leverages market resources to protect your interests.
NAR is the acronym for the National Association of REALTORS®, the largest U.S. trade association for real estate professionals. Founded in 1908, it represents over 1.5 million members—brokers, salespeople, property managers, appraisers and counselors.
“REALTOR®” is a trademarked title reserved for NAR members. All REALTORS® are licensed agents, but not all licensed agents are REALTORS®. This distinction signals adherence to NAR’s Code of Ethics and ongoing professional requirements.
NAR develops standardized forms, guidelines and transaction protocols that streamline deals nationwide. Local boards adopt these templates, ensuring consistency across markets.
Members agree to follow a strict Code of Ethics. Violations—such as misleading advertising or conflicts of interest—can trigger grievance procedures and disciplinary action.
NAR influences Multiple Listing Service policies, including listing input, data-sharing rules and commission splits, shaping how offers are displayed and fees are negotiated.
NAR offers designations like ABR (Accredited Buyer’s Representative), ALC (Accredited Land Consultant) and SFR (Short Sales & Foreclosure Resource). These programs require coursework and continuing education, boosting agent expertise.
NAR’s mediation and arbitration services help resolve commission disputes and ethical complaints, providing buyers and sellers with a formal avenue for recourse.
Members receive subscription access to market reports, property data and proprietary platforms. Local events and national conferences foster networking and knowledge sharing.
All agents must follow state licensing laws, but REALTORS® are additionally bound by NAR’s Code of Ethics, which holds them to higher standards of honesty, transparency and fiduciary duty.
NAR sets model commission structures, but fees vary by local board. Some sellers may negotiate lower listing fees if agents agree to different splits.
Only those who pay dues and comply with NAR rules can use the REALTOR® trademark. Nonmembers must identify simply as real estate agents.
Applicants must hold a valid real estate license, join a local REALTOR® association and submit an application to their state association. Approval typically takes just a few days.
Annual dues include national, state and local association fees. Costs range from a few hundred to over a thousand dollars, depending on your region and board.
In recent years, NAR faced lawsuits alleging commission-fixing and anticompetitive MLS rules. Settlements have prompted policy reviews and fee disclosures.
Critics argue that default commission splits inflate seller costs. NAR has responded by updating MLS policies to allow more fee transparency and negotiation flexibility.
Emma, a first-time buyer, interviews two agents: one licensed agent and one REALTOR®. She chooses the REALTOR® for her ethics training and NAR-backed tools.
The REALTOR® disclosed all seller concessions, verified repair estimates and mediated a fair home inspection resolution—actions backed by NAR’s binding grievance process if the other party objected.
No. Agents join voluntarily. Only NAR members may use the REALTOR® trademark.
Sellers typically pay listing commissions negotiated with their agent; buyers rarely incur direct dues costs for working with a REALTOR®.
Ask to see their membership ID or check your local board’s online directory.
Visit NAR’s official site for designations like ABR, ALC, SFR and specialized workshops on technology, fair housing and commercial real estate.
The full Code of Ethics is available at nar.realtor/code-of-ethics (external) or through your local REALTOR® association’s website.
Grasping the meaning and influence of NAR helps you select an agent committed to top-tier ethics, industry-leading resources and consumer protection. Armed with this knowledge, you can navigate your next home purchase or sale with confidence.
