• A Realtor is a licensed real estate professional who is a member in good standing of the National Association of Realtors (NAR) and who agrees to follow NAR’s Code of Ethics. [1][3]
– “REALTOR®” is a registered trademark tied to NAR membership, not a generic job title or a license designation. Members must follow specific trademark-use rules. [6][7]
– All Realtors are licensed real estate professionals (agents, brokers, appraisers, property managers, etc.), but not all licensed real estate professionals are Realtors. Membership in NAR is voluntary and brings an ethical and professional commitment. [1][3]
– Recent NAR rule changes (effective August 2024) increase seller control over listing/marketing options, require clearer written buyer-broker agreements, and make commission arrangements more transparent and negotiable. [2][4]
What Is a Realtor?
A Realtor is a licensed real estate professional who is also a member of the National Association of Realtors (NAR). By joining NAR, a member agrees to abide by the association’s Code of Ethics and standards of practice in dealings with clients, the public, and other Realtors. Realtors may be sales agents, associate brokers, brokers, property managers, appraisers, or counselors involved in residential or commercial real estate. [1][3]
When Was the National Association of Realtors Started?
NAR began in 1908 as the National Association of Real Estate Exchanges with roughly 120 members, 19 local boards, and one state association. Over time it grew into a national trade association representing millions of members. [2]
What Is the Realtor Code of Ethics?
– Purpose: The Code of Ethics establishes professional duties and standards intended to promote honesty, transparency, fairness, and public trust in real estate transactions. It covers duties to clients, the public, and other Realtors. [3]
– Key passages: For example, the Code requires Realtors to avoid exaggeration, misrepresentation, or concealment of pertinent facts and to pledge to protect and promote the client’s interests. [1][3]
– Training and enforcement: NAR requires members to complete Code of Ethics training periodically and local boards enforce compliance; enforcement can lead to discipline including suspension or expulsion. Check your local board for the precise training frequency and complaint process. [3][8]
How Are Real Estate Agents Different From Realtors?
– Real estate license vs. NAR membership: A real estate license is issued by a state and authorizes a person to practice real estate (sell, lease, manage, etc.). “Realtor” is a trademarked title reserved for NAR members. You can be a licensed agent without being a Realtor; you cannot call yourself a Realtor unless you are a current NAR member. [1][3]
– Additional obligation: Realtors take on an extra obligation to follow the NAR Code of Ethics and to maintain membership through local and state association affiliations. [1][3]
Using the REALTOR® Trademark
– Trademark rules: NAR regulates how members use the REALTOR® trademark. It must appear as “REALTOR®” in all capital letters and be separated from a personal or business name by punctuation. It is not to be included as part of a firm’s legal corporate name and should not be used to imply license status. These rules are intended to protect the trademark and prevent legal complications if membership is suspended or terminated. [6][7][9]
– For consumers: Seeing “REALTOR®” on advertising means the person is an NAR member who has agreed to its Code of Ethics — it does not substitute for verifying state licensure or the specifics of what services the professional will provide. [6][7]
Important Recent Changes (effective August 2024)
– Sellers’ listing/marketing control: New NAR rules give sellers more explicit options about how and when their property is marketed through the MLS and what offers of commission to buyer-side agents will appear. [4]
– Commission transparency and negotiability: Commission rates are now more openly disclosed and negotiable. Brokers/agents still set their own fees but must be clearer about how commissions are structured and disclosed. [2][4]
– Written buyer agreements: NAR now requires brokers to have written buyer-broker agreements to clarify the services being offered and any compensation arrangements. This helps consumers understand scope and costs before services are delivered. [4]
Practical Steps for Professionals: How to Become and Stay a Realtor
1. Obtain a state real estate license: Complete required pre-licensing education and pass your state’s licensing exam. (State boards set these requirements.)
2. Affiliate with a broker (if required): Most new licensees must work under a licensed broker to practice.
3. Join your local board and state association: NAR membership is obtained through a local Realtor board, and state association membership is typically required as part of that process. [3]
4. Apply for NAR membership and pay dues: Complete the NAR/new-member application and pay the association dues (national, state, local). [3]
5. Complete required Code of Ethics training: NAR requires members to complete periodic ethics training — verify the required frequency and course options with your local board. [3][8]
6. Use the REALTOR® marks correctly: Follow NAR rules on trademark usage, formatting, and placement on marketing materials and business names. [6][7]
7. Maintain good standing: Keep your license active, pay dues, comply with the Code of Ethics, and complete continuing education and any local requirements to avoid disciplinary action. [8]
Practical Steps for Consumers: Finding and Working with a Realtor
1. Verify license and Realtor status:
• Check state licensing board websites to confirm a person’s real estate license and disciplinary history.
• Ask whether the agent is a Realtor (NAR member) and confirm by contacting the local board if needed. Seeing “REALTOR®” indicates NAR membership. [1][3]
2. Request a written agreement:
• Ask for a written buyer-broker agreement that explains the services provided and any payment or commission expectations (now required by NAR for brokers). [4]
• For sellers, review multiple listing options and how commission offers to buyer agents will be shown on the MLS. [4]
3. Ask about commissions and fees:
• Commission rates are negotiable. Ask how the broker/agent will be compensated and whether any fees will be charged beyond commission. [2][4]
4. Ask for the Realtor’s Code of Ethics commitment:
• Ask how the agent demonstrates compliance with NAR’s ethical standards and how disputes would be handled. [3]
5. If problems arise, file a complaint:
• If you believe your Realtor violated the Code of Ethics, you can file a complaint with the local Realtor board. Local boards manage enforcement and discipline, including suspension or expulsion for serious violations. [8]
The Bottom Line
A Realtor is more than a licensed real estate agent: the title denotes voluntary membership in the National Association of Realtors and a commitment to a defined Code of Ethics. For consumers, working with a Realtor can signal adherence to industry ethical standards and give additional complaint/discipline pathways through NAR local boards. Recent rule changes (August 2024) have increased transparency around commissions and required written buyer agreements to help consumers better understand services and fees. Always verify state licensure, ask for written agreements, and be clear about fees before you engage a real estate professional. [1][2][3][4]
Sources
1) Investopedia — “What Is a Realtor?” (source URL provided by user)
2) National Association of Realtors — “2024 Year in Review”
3) National Association of Realtors — “How to Become a REALTOR”
4) National Association of Realtors — “Multiple Listing Options for Sellers” and related NAR rule-change summaries
5) National Association of Realtors — “2025 Code of Ethics & Standards of Practice”
6) National Association of Realtors — “Use of the MARKS With a Member’s Name”
7) National Association of Realtors — “Use of the MARKS With a Member’s Firm Name”
8) National Association of Realtors — “Membership Suspension Information”
9) National Association of Realtors — “National Association of REALTORS® Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers”
Editor’s note: The following topics are reserved for upcoming updates and will be expanded with detailed examples and datasets.