Yesterday, I posted a blog suggesting that during this slow market perhaps it would be a good time for the NAR and member associations to reexamine how they have been administering the core duties that were assigned to them by the original members. 

Primarily I was suggesting that they consider requiring significant formal, on-going education for members; and secondly, that they quit winking at ethics violations. 

Several commented, and made me realize that there was more to be said about these ideas, and what that was was why the NAR was formed to begin with.  So here is a cryptic accounting for those of you who don't know it.

Ironically, the reason the National Association of Realtors was founded was for the purpose of weeding out the zillions of unethical people who were brokering real estate, and the organizers had one devil of a time getting it done because the unethical people naturally lobbied against it.  Apparently their voices were louder than those of the ethical professionals.  They wanted to continue selling quitclaim deeds to the Brooklyn Bridge.

The first attempt to form a national real estate association was in 1891 and it collapsed 19 months after it was chartered.

Two other attempts failed as well.

But then at 10 AM on May 12, 1908, 120 real estate men representing quais-associations from 13 states met in Chicago.

The idea was to "unite the real estate professionals of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests."

Read that again:  The idea was to "unite the real estate professionals of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests."

They hired a general counsel and an executive secretary, and appointed some standing committees to look into a Code of Ethics, how real estate was being taxed, state and municipal legislation and the organization of local exchanges - a Multiple Listing Service.

No state had licensing requirements then, but shortly thereafter, California wrote and instituted a licensing act, others followed with Texas being second to California, in 1911. Both floundered for years, however the California act became the model for every other state.

In 1916, the name of the national association was changed to the National Association of Real Estate Boards.  

It wasn't until around 1950 that real estate professionals finally saw the need to have a Multiple Listing Service.  Prior to then they resisted every attempt.  No one was worried about or considered the evils of dual agency (primarily because there were none).  Brokers listed and sold their clients' properties because there were no sub-agency agreements among brokers.

Ebby Halliday of Dallas, a national legendary broker who, at 96, is still runing her company today, was such a powerful voice among Texas Realtors, that she was able to convince those in Texas that an MLS would be a good thing; that it should be adjunct to each Association.

I am of the opinion, and it isn't a minority opinion like the NAR would hope it is, that the MLS affiliation has allowed the NAR and its various chapters to all but coast rather than take a hard nose stand on the responsibility members turned over to them in the beginning. 

One hundred years after the problem was defined and the solution initiated, we still have enormous problems with members violating the Code of Ethics.  We accept for membership in the Association people with state licenses, without testing their competency.  That is an insane approach. 

And, it is in direct conflict to the purpose of setting Realtors and their competency a part from all the others...the thing the TV, radio and print media ads assure the public that Realtors do.

The NAR, if it does nothing else, should have a test for admissions, and a strict and on going curriculum that is required of members, and it should be taught under the auspices of the boards, not farmed out.  And it should strictly enforce the Code of Ethics rather than worry about losing some violating member's association and dues.

Time's up!