REALTORS®, agents and brokers

Wait… isn’t my agent a REALTOR®?

Not necessarily. While “realtor” pops up as a synonym for agent all over Reddit and in casual conversation, REALTORS® are dues-paying members of the National Association of REALTORS®, Washington REALTORS®, and the local chapter - the Whatcom County Association of REALTORS®. 

For many years in Whatcom County, it’s been common for brokerages to be members of NAR and thus, by default, all new licensees who joined any of these large reputable firms would be required to become a REALTOR®. 

It’s important to note that we as real estate professionals are not allowed to pick and choose membership of the local, state, or national organizations, AND if a brokerage is a member, every agent there has to be a REALTOR®, and if a brokerage isn’t, then none of their agents can be. It’s an all-or-nothing game. 

Signing up as a REALTOR® was a default part of the onboarding process for most of us, an industry norm, not a purposeful, intentional choice by that broker to operate at a higher standard of ethics. 

Recently, some firms have been readdressing this almost-default membership practice and have chosen to nonrenew membership for any one of a number of reasons. 

Our firm is one of them. 

That means that every agent on our team and in our brokerage is no longer a REALTOR®, no matter how long we have been. For Leo, that’s around a decade. For others on our team, it’s somewhere between two to seven years.

One of the core value propositions NAR has offered its members and our industry for the last hundred years has been the Code of Ethics, written in 1913. Many REALTORS® market themselves as being “held to a higher standard of ethics” via this membership. 

And that’s a fair point. 

However, all of us are governed by our statutory duties as outlined in RCW 18.86.030, which includes “to deal honestly and in good faith”. We’re also subject to guidelines (enforced by fees and fines) from the Northwest MLS, which provide a multitude of small corrections before they become larger issues. 

At the end of the day, nearly everyone in Whatcom County who offers real estate brokerage services is an independent contractor, responsible for their individual business under the oversight of a Designated Broker. 

As you see individual firms deciding whether they will remain with NAR, consider: 

• Do you think our standards of business ethics have changed simply because we’ve nonrenewed membership with a specific professional association?

• Or do you think and believe that we as professionals would continue to offer the same level of service with integrity to our clients as (for example) our team has done for our past 400 transactions as a team?

It’s important to interview multiple reputable agents to find the type of person you would trust with your real estate needs, and make a selection based on their integrity, track record, involvement in the community, and professional experience. 

A few quick definitions:

• Licensee - someone who holds a real estate license (rarely used outside of training classes)

• Broker - the word used in state law and in the everyday world of our industry.

• Agent - can be used commonly, but specifically means that they are a broker who is contracted to work with a specific client. 

• REALTOR® - a member of the national professional association

• Managing Broker - the license status that allows a broker to train other brokers, provide contract advice, and manage a branch office.

• Designated Broker - the responsible broker in a firm/brokerage; this endorsement is added on a Managing Broker license and makes this person responsible for all brokers working at that firm.