Can NAR build an ethics-monitoring tool — and will it? 

After the National Association of Realtors said at its midyear conference in June that it is using AI tools to automate trademark enforcement, consumer advocate Wendy Gilch suggested NAR use its resources to build a similar system to catch false claims and other unethical content posted by Realtors.

Is NAR building such a system? The trade group won't say, though its responses when asked directly suggest the answer is no.

What 'brand protection' means to NAR

NAR's efforts to police its trademark are part of the "seven-stage brand protection strategy" included in its strategic plan announced last year. Asked whether "brand protection" only refers to policing trademark misuse or whether it encompasses anything else that would reflect badly on the Realtor brand, NAR's response indicates the former — without directly saying so.

"NAR's brand protection efforts include educating members and third parties on the proper use of the Realtor marks, monitoring misuse across digital and traditional media, and taking appropriate action when use of the marks may cause confusion, dilute the brand, or otherwise undermine its legal protections," an NAR spokesperson said in a statement.

"NAR's approach is education-first and risk-based, with enforcement focused on meaningful misuse rather than technical violations."

Emphasizing an ethical difference

NAR spends tens of millions of dollars every year, primarily from member dues, on efforts to differentiate Realtors from non-Realtors. The primary differentiator, the trade group asserts, is the NAR Code of Ethics, which Realtors agree to abide by when they join NAR.

According to NAR, protecting the Realtor trademark and "preserving the integrity of the Realtor brand" has long been one of its core responsibilities: "The Realtor mark is a collective membership mark that signifies membership in NAR and a commitment to abide by the Code of Ethics and Professional Standards, helping preserve the value of the brand, distinguish Realtors from non-members, and reduce consumer confusion."

In a recent post on her Selling Later blog, Gilch asked that NAR differentiate its brand by focusing its AI enforcement efforts on unethical content posted by members. 

"You have the AI technology in the works, you have the budget, and you have the performative appetite for being 'proactive,' so point the thing at the content instead of the username or word," Gilch wrote of NAR. 

"Flag the 'free services' claims. Flag the 'standard commission' claims. Flag the videos that exist solely to make a buyer stop asking questions. That's the infringement that actually costs consumers money, and it's being tied back to you."

NAR: Enforcement is local

Asked whether NAR is building such a system — and whether, as some Realtors have suggested, NAR planned to focus more on holding those who violate NAR's standards to account to truly differentiate Realtors from non-Realtors in the eyes of consumers — NAR did not respond directly. Instead, the national trade group indicated that ethics enforcement is the purview of local and state associations, a position that appears to mirror NAR's shift toward making individual MLSs responsible for MLS policy decision-making.

"As a member-led organization, NAR's volunteer leadership regularly reviews the Code of Ethics and Professional Standards and will recommend any enhancements to the Board of Directors to ensure they remain meaningful, relevant, and effective," an NAR spokesperson said.

"Once adopted, NAR communicates those updates through the appropriate governance channels, while enforcement continues to be administered by state and local Realtor associations."

Providing resources vs. enforcement

NAR's Constitution and Bylaws do say that member boards are responsible for enforcing the NAR Code of Ethics while NAR's board of directors and delegate body vote on any changes to the code itself. The hearing panels, grievance committees and professional standards committees that adjudicate ethics complaints meet at the local or state levels.

There is nothing in NAR's constitution or bylaws, however, that prevents NAR from providing resources or tools for ethics enforcement to state and local associations, all of which likely have considerably smaller budgets.

NAR already provides its associations with an Ethics Enforcement Toolkit, a NAR Model Citation Policy and Schedule of Fines and a Professional Standards Training Guide, among other resources. None appear to be focused on proactive detection or monitoring of ethics violations. Instead, they largely focus on what to do after a complaint has been lodged.

Members want accountability

In NAR's annual report released in January, the trade group referenced the need to "Strengthen the Code of Ethics" through "training enhancements" and "enforcement processes" in a section about "Modernizing the Association" and its commitment to "Recommit to Professionalism."

"Realtors rely on NAR to uphold and advance the industry's standards for professionalism and ethics," the report said. "Amid growing concerns about declining professional conduct, members are actively seeking stronger support and leadership from NAR." 

In regards to professional standards, the report noted that "Stakeholders across the ecosystem have communicated to NAR that fostering a culture of integrity and accountability across the industry is paramount." 

Asked whether NAR will update its ethics enforcement processes, the trade group pointed to its member education efforts.

"NAR remains committed to strengthening professionalism and accountability through its Code of Ethics, member education and training, and professional standards processes, all of which help protect the integrity of the Realtor brand and reinforce consumer confidence and trust," an NAR spokesperson said. 

"NAR also continues to advance professionalism by enhancing member education, including through role specific education tracks at NAR events and by revamping our educational offerings, providing localized market data for members to use with clients, offering AI resources that help members better serve consumers, and developing guidance to support understanding of MLS policies and practices."

Consumer trust

Another stated goal of NAR's strategic plan: to "Cultivate trust in the Realtor brand."

"NAR must position the Realtor brand as a trusted symbol of expertise, integrity and reliable service for consumers," its annual report said.

Gilch flagged a tension in rebuilding consumer trust by holding members accountable to the standards set by the NAR Code of Ethics: Those members may decide to leave — and take their dues money with them. But she emphasized that raising the bar is how NAR will truly rehabilitate its brand.

"It's time for NAR to choose its path: Rebuild with the people who are good at what they do and hold their feet to the fire to be great, or keep standards low and stay the course on dues money and lobbying power," Gilch wrote.