NVAR’s Citation System Upgrade

NVAR’S Citation System Upgrade WHAT NVAR MEMBERS NEED TO KNOW

By Stevie Fisher

AT ITS CORE, the Realtor® Code of Ethics asks Realtors® to observe the Golden Rule: “Do unto others as you would have others do unto you.” Article 1 essentially requires Realtors® to treat all parties honestly and act in the best interests of their clients. In reality, the 17 Articles of the Code of Ethics do not require anything of Realtors® beyond business practices that make them the most successful and ensure that they provide the best service to their clients.

“A few bad apples spoil the bunch,” says 2020 vice chair of the NVAR Grievance Committee, Rob Wittman. “When Realtors® behave unethically, it affects the reputation of the industry as a whole.”

While continuing to provide the education and resources NVAR members need to be successful in their businesses, we must also acknowledge the reality that mistakes do happen.

NVAR has the duty to enforce the Code of Ethics, the Regional Rules and Regulations for the SentriLock Lockbox System and the NVAR Bylaws through the association’s complaint process. However, there are many ways to ensure professionalism in the industry, including the Citation System.

The most frequently cited complaints involve unauthorized access to properties and advertising disclosures. Realtors® frequently receive citations for providing access to properties without an appointment, or for sharing a Mobile Access Code or their SentriCard to allow their clients to access a property without the Realtor® present. The most commonly cited advertising disclosure rules include failing to include the brokerage name in advertising, using another agent’s photos without securing permission, and generally failing to present a true picture in their advertising.

In the past three years (2017- 2019), NVAR has received 330 ethics complaints. Of those complaints, approximately one-third were dismissed by the Grievance Committee. This left NVAR with over 200 complaints to process in accordance with established due process procedures.

While it is possible for NVAR to rely solely on ethics hearings to resolve complaints, those hearings involve considerable amounts of time from parties, volunteers, and staff. When the association has a high number of complaints, it may take months before an ethics hearing is scheduled. Parties may submit documentation and evidence, secure counsel and call witnesses. The hearing decision, made by members of NVAR’s Professional Standards Committee, is based upon whether there is clear, strong and convincing evidence of a violation. If a Realtor® is found in violation, they may be issued a letter of warning, required to attend educational sessions, and/or issued a sanction up to $15,000 (depending on the nature of the complaint and the number of violations previously committed by the Respondent). This process, while burdensome, is a necessary one that protects members of the public and the reputations of all Realtors®.

However, there are more efficient means for Realtors® to acknowledge a mistake without going through the entire ethics complaint process. Enter the NVAR Citation System. This system ensures that certain complaints can be adjudicated in one month or less without requiring parties to attend a hearing.

Such a system also provides the Realtor® found in violation with relevant education and a fine that is appropriate for the bad action without causing serious harm to their livelihood.

The original Citation System was adopted by the NVAR Board of Directions in 2010 and has been updated several times since. This system provided that Realtors® who had committed certain violations pay a citation and a smaller administrative fee ($150) than was required by Realtors® found in violation via a hearing ($500).

In the past three years, the NVAR Grievance Committee issued citations in approximately one-third of the complaints received. The vast majority of Realtors® have opted to participate in the Citation System and pay the citation without requesting a hearing. The Citation System has been valuable to members who want to address their mistake, learn from it, and move on. It

ARTICLE/STANDARD OF PRACTICE 3, SOP 9

12

12

SentriLock Policy IV.L A cooperating broker providing access to listed property on terms other than those established by the owner or the listing broker Failure to present a true picture in real estate communications and advertising Failure to disclose status as a real estate professional in advertising or other real estate communications(A) Shall not allow anyone who has been admitted to the property by Holder to remain in the property after Holder has left the property without consent of the property owner(s)

1ST VIOLATION $1,000*

$500*

$500*

$1,000*

2ND VIOLATION $1,500**

$1,000**

$1,000**

$1,500**

3RD VIOLATION $2,500**

$3,000**

$3,000**

$2,500**

Short section of citation system (Article 3-9, SentriLock Policy IV.K, Article 12) To review the upgraded Citation System in its entirety, please visit nvar.com/citation

has also been instrumental to NVAR’s ability to provide an efficient ethics complaint process by reducing the number of complaints that require a hearing by more than 100 cases.

Both in his position as vice chair, and as an experienced broker, Wittman finds the Citation System to be an effective tool to support NVAR’s professionalism efforts.

“It is effective. The problem is the lack of use – there is an impression that filing complaints is a complicated and onerous process,” Wittman says.

SYSTEM UPDATES

Following valuable feedback from NVAR members, volunteer leaders on the Grievance Committee, and parties to prior ethics proceedings, NVAR was determined to address two common concerns with the Citation System. First, it was important to acknowledge that mistakes do happen and that most violations of the Code of Ethics are based in ignorance. Under the previous Citation System, a Realtor® could be issued over $2,000 in fines and fees for sharing a Mobile Access Code with another party. This is an expensive lesson. Second, many members report that it is still important for NVAR to hold bad actors accountable and that a violation and fine could be seen as a cost of doing business if the citation amounts are too low for repeat offenders.

The NVAR Board of Directors addressed both issues in 2020 by approving extensive updates to the system. Effective July 1, 2020, the Citation System has been expanded to make more potential violations eligible. First-time violators are issued a reasonable citation, and in most cases, they will have the ability to reduce their citation by half if they attend an NVAR-approved course on ethics and professionalism. Repeat violators will face increased citations and mandatory education. The Grievance Committee generally still has the discretion to forward complaints to ethics hearings where the Realtor® is a repeat offender.

It is a team effort between Realtors®, their brokers, and NVAR to provide relevant education and uphold the highest standards of professionalism. The Citation System provides more predictable and efficient outcomes for parties involved in a complaint. It also provides potential complainants with the opportunity to report bad behavior without (in many cases) being required to participate in the ethics complaint process. NVAR continues to encourage parties to work through these issues outside of the complaint process – an apology can go a long way – but that is not always possible.

Your reputation is vital to your business. The NVAR Professional Services team strives to work with our members to protect the reputations of all Realtors® and instill the trust in clients and customers that is so important to your success.

“Realtors® are a unique workforce and supervision is the foundation for this business. A laser focus on professionalism right now is as critical for this business as is exceeding financial goals. If we cannot commit to increasing standards when we see violations, someone else will,” says Wittman. With your support, the upgraded NVAR Citation System will help us do just that.

Stevie Fisher is the NVAR associate director of professional services.

COVID-19 and Commercial Real Estate LESSONS FROM THE PAST MAY HELP CHART FUTURE COURSE

By Frank Dillow

THE TRUE IMPACT OF COVID-19 on communities across the globe likely won’t be known for some time. With the benefit of hindsight, historians, economists and social scientists will frame the narrative in the years to come. Regardless, the pandemic and resulting economic shutdown have brought significant changes in the way Realtors® and their clients live, work and play. And this has implications not only for residential real estate, but for commercial properties as well.

One way to gain perspective on the virus’s effects on commercial real estate is to look at the Spanish Flu epidemic that began in 1918 and continued through the spring of 1919. In the United States, at least 675,000 people died. Striking in the middle of World War I, it was especially lethal among the young, otherwise healthy, soldiers. Among the 116,516 soldiers who died during the war, more than half, 63,114, died from the flu while 53,402 died in combat.

Local resident Charlotte Corner later remembered, “On top [of the war deaths] we had that awful outbreak of flu … and there were not enough doctors, there were not enough nurses,” as related in the bicentennial History of Fairfax County, published by the Board of Supervisors in 1978. Fairfax County’s schools and churches were closed, the county fair and other community gatherings were cancelled, and the public was asked to wear masks and stay away from one another. Still, Fairfax County was one of the hardest hit jurisdictions in Virginia with 531 fatalities. As the war ended, Northern Virginia remained very rural. Its total population amounted to less than 100,000 with roughly 22,000 residents in Fairfax County – nearly the same as Fauquier County. An additional 16,040 resided in Arlington and Alexandria combined. The loss of life from the flu, combined with the changes brought about by the war, had a profound effect on Northern Virginia, accelerating the implementation of numerous new technologies that had been in existence for some time, but not widely adopted in the region. Sanitation and public health became a priority. Fairfax County established a new public health program in 1919, and the first inspection revealed that only 5% of the 2,007 homes inspected had sanitary toilets. Only 75 of the more than 2,000 farms had running water while only 145 had electricity, which would make lighting and home food refrigeration available. An even greater impact on sanitation would result from the spreading popularity of the automobile. Automobiles allowed more Virginians to move farther into the pristine countryside and away from the congested and unsanitary city. Still commuting to the city to work, they created a new type of resident: the “commuter.” By 1923, the purchase price of the popular Model T Ford dropped to $300, and 2,775 vehicles of all kinds were registered in the county. Farmland became increasingly valuable as investors developed it into suburban housing. For the first time beginning in 1925, farmers accounted for slightly less than half of the residents of Fairfax County. Responding to the new challenges, in 1921, real estate agents created the Alexandria-Arlington-Fairfax Real Estate Board – which became the Northern Virginia Association of Realtors® (NVAR) – to improve the “professional” and “ethical” standards of the industry. In 1916, the term “REALTOR” was devised by Charles N. Chadbourn, a past president of the Minneapolis Real Estate Board. The collective membership marks REALTORS® and REALTOR® were trademarked in 1949 and 1950, and the title “REALTOR®” became a badge of honor. New zoning laws adopted in the 1920s created standards for singlefamily residences to be built on their own private lots, separated from commercial property. Homeowners would now rely on their cars not only to commute to work, but also to do their shopping and take care of their daily activities. Similar to 100 years ago, today’s “new normal” may again result from the accelerated implementation of technologies that have been around for many years. Our new reliance on e-commerce, working from home, distance learning, and even telemedicine may change how and where families choose to live and work. Responses in Northern Virginia, however, will be vastly more complicated with the current population, which has grown to more than three million.

With renewed emphasis on sanitation, employers and shopkeepers may again seek to move out of the city. Large offices and retail centers with expensive amenities like parking, employee fitness centers and cafeterias, could become a thing of the past. Potential liability for the health and safety of occupants and visitors might also impact commercial choices.

Single-family residential zoning laws could be reconsidered. The current distinctions between residential and commercial zoning may no longer be appealing. Home offices could evolve into home-based small-scale manufacturing, or services like hair salons or exercise facilities. Families may prefer to have secondary housing available on their property, so grandparents can live with their families. Carriage houses may reappear providing low-cost housing for caregivers.

Commercial real estate has long been based on quantifiable figures – numbers of employees, volume of sales, quantity of products, etc. – defining the amount of square feet needed for each enterprise. With the millions of jobs that have been lost, the increasing number of bankruptcies, and employees working remotely, commercial property owners and tenants will be looking to dispose of their unused space to reduce their costs.

The resulting increased vacancy rates will result in lowering the cost to buy or lease commercial property, and lead to alternative uses for existing spaces, whether it’s converting retailing to “last mile” warehousing or retrofitting unused office space into apartments.

The possibilities stretch the imagination, affecting nearly all types of commercial property whether it is offices, shopping and distribution centers, or restaurants.

As NVAR enters its second century, Realtors® will see even bigger challenges, change and possibilities. Realtors® are already adopting creative new ways for staying connected while respecting the needs for increased sanitation and security for themselves, their clients and the public. Those with the motivation and imagination to learn, coupled with a dedication to serve their communities in new ways, will create new opportunities.

Frank Dillow is a past chair of NVAR’s Realtor ® Commercial Council, an NVAR instructor, and a senior commercial broker in Long & Foster‘s Commercial Division. He can be reached at francis.dillow@ longandfoster.com.

Book Review: “The Art of Working Remotely” AUTHOR SCOTT DAWSON SHARES BEST PRACTICES FOR REMOTE WORKER SUCCESS

By Stacy Holscher

THE GLOBAL PANDEMIC has upended our lives and workplace dynamics. While the popularity of remote work has grown over the years, many people are now learning what it’s like to work from home for the first time.

As Realtors®, we appreciate the flexibility of our industry – we have the ability to work from almost anywhere! The days of popping into a coffee shop to work between appointments and attending lunch and learns in the office are put on pause. In our new world, many Realtors® find themselves working from home more than ever before. But how do you set yourself up for success?

Scott Dawson’s book, “The Art of Working Remotely,” is a wonderful resource to navigate the challenges, benefits and opportunities of working from home.

A light and witty read, Dawson’s book is broken into three main sections: The Making of Me, The Space and The Habits. As a veteran

Your Member Benefit LIBRARY & ARCHIVES

Founded in 1923, the National Association of Realtors ® Library & Archives offers a variety of research services and thousands of print and digital resources for use by NAR members and state and local association staff.

Take advantage of the library’s digital collections 24/7: Visit nar.realtor/library-archives and sign in with your NRDS number to access digital books and audiobooks curated especially for real estate professionals.

of working remotely for over 20 years, Dawson shares engaging short stories in each section, covering his professional journey as a remote worker and the valuable lessons he’s learned along the way.

THE MAKING OF ME navigates through anecdotes of Dawson’s career from his first offer to work remotely in 1998, as well as a recount of the experiences that helped him grow professionally over the last 20 years. Hidden in his entertaining short stories, you’ll find nuggets for success such as:

“Be present for yourself and your family during your non-working time.”

“Be nice to people and do not burn bridges. You never know where, when or how your paths will cross again.”

“Be cautiously candid in your communications.”

According to entrepreneur Tim

Ferriss, “You are the average of the five people you most associate with.”

Dawson suggests, “If you don’t like those five people, you should make some changes until you do.”

THE SPACE covers the physical aspects of success in the home office and setting up the best possible work environment.

Infrastructure: Don’t forget the basics! Set yourself and your workplace up for success. Do you have the framework in place and the technology needed to succeed?

Mobility: Sitting too long at a desk may impact your health and

productivity. How can you move around? Clothing: Flexibility here offers huge financial benefits and convenience. What should you wear? How casual is too casual? Food: Always schedule time for lunch. Do you always need to honor that scheduled time? Tip – The answer is yes! Companionship: Are pets in the office a good idea or a distraction?

THE HABITS, the final section of “The Art of Working Remotely,” reviews positive behaviors and best practices to help ensure remote working success.

Measurement: Success is planned and measured. Have you set goals and developed your plan?

Communication: When you’re remote, how and when you communicate with your clients and colleagues is critical. What does great communication look like to others? Managing Remote Teams: Culture is so important to keep our teams together and cohesive. How do you manage remotely and keep folks engaged? Task Management and Discipline: We all work at our own pace. When working from home, discipline takes discipline. What are the best ways to hold yourself accountable? Transparency: Is the saying “out of sight, out of mind” true? When you’re not visible in an office, how do you remove doubt regarding your productivity? Loneliness: It can be challenging to not feel isolated when working remotely, especially during a pandemic. How can you fight off feelings of loneliness?

“The Art of Working Remotely” is a refreshing resource for those new to remote working or those who wish to improve their work-from-home experience. Change can be challenging, but the benefits are endless with the right mindset. Take your “WFH” experience to the next level and check out Dawson’s book, and hundreds of others, available for free to all NAR members at nar.realtor/library.

Interested in being our next NAR Library “RE+Viewer”? Email re+view@ nvar.com.

Stacy Holscher is an NVAR member and associate broker with Redfin.