Association policies

Can an association charge a member a fee for paying for dues or classes with a credit or debit card?
Local associations sell a variety of goods and services, including membership, educational courses, event registration, and products. Be aware that local associations may not impose a fee on a buyer who uses a credit card, debit card, or stored value card instead of cash or check for payment. This does not prohibit local associations, however, from discounting the regular retail price of an item for buyers who pay cash.


Unreported licensees

What are the association’s options if a designated REALTOR® (DR) refuses to pay the additional dues owed for an unreported licensee?
The association should follow provisions in its bylaws for suspension and termination for non-payment of dues.

Do you inactivate the office and all licensees when you inactivate the broker of a firm? Even those salespersons who have already paid current year dues?
Yes, if the principal broker (DR) of a firm is terminated, the office and all licensees associated with the DR should be terminated-even licensees who have paid their current dues.

Can the responsible person’s license number be different from the sponsor’s license number?
Yes, a licensee may be sponsored by the corporation license (sponsor license) or the broker’s license (responsible person’s license).

Should you change a UL’s class to another class before dues obligations have been satisfied?
No, a valid UL should be put in NRDS with a Member Type equal to Non-Member and with a Subclass equal to SP.

What do you do with unresolved ULs from the 2nd, 3rd and 4th quarters prior to December 31?
It is the association’s responsibility to collect an assessment from the DR for 1st and 2nd quarter ULs. If the DR does not pay the assessment, or the UL does not join as a REALTOR®, and the UL remains active in TREC with the same broker, the board will be billed for the UL by TAR.  The board should terminate the DR, all agents in the office, and the office to avoid receiving an invoice.

What are the recommended steps to resolving a UL?
According to the policies recommended by the Texas Association of REALTORS® Membership Task Force and approved by the Executive Board, the following steps should be taken to resolve an unreported licensee:

  1. Check agent’s information with TREC.
  2. If agent is no longer active with TREC, make notation on list.
  3. If agent is still active but with another broker, make notation on list.
  4. If agent is connected to a LFRO, make notation on list and submit the required LFRO Certification to TAR.  This certification form can be found on TexasRealestate.com under AE Resources.
  5. Call your Texas Association of REALTORS® membership coordinator at 800-873-9155 to notify the association which records need to be corrected.
  6. If agent is still active and with a member broker, contact the member broker to invite the agent to join, or collect an assessment from the sponsoring broker for the agents who do not wish to join, or allow the sponsoring broker the ability to return the agent’s license so that TREC reflects the 60 days after receipt of UL list.
  7. Add agents to NRDS or reactivate members in NRDS and update member class and local join date, if applicable.

Dues processing

According to NAR’s model bylaws what is the procedure and time frame for collecting delinquent dues?
Refer to Article X, Section 4 of NAR’s model bylaws. After 30 days, suspend member at the discretion of the board of directors; 60 days, terminate the member at the discretion of the board of directors; and 90 days, automatic termination of membership, unless previously terminated by directors.

Do the procedures and time frame mentioned above affect the transmission of collected dues to TAR?
No. Texas Membership Task Force established a policy in which dues collected during the month are due to TAR by the 10th of the following month.

Does NAR have a provisional membership class that a local association can adopt in their bylaws?
Yes, this classification gives the applicant rights of REALTOR® membership pending completion of local membership requirements. (Note: “P” is proper member status.)

Can a member hold secondary membership in an association without holding primary membership in another association?
No, they must hold primary membership in an association prior to holding secondary membership in another association. They can hold secondary membership in any association without their broker holding membership in that association.

How do you verify primary membership?
On the membership application, licensees are asked if they hold membership in another association. This should prompt you to contact the other association and verify this information. Ask the AE to send you a letter of good standing for that member to put into their file. Always check on NRDS to see if they are in the system; this also avoids issuing a licensee another NRDS #.

Can a licensee hold primary membership in a local association where the principal broker (DR) does not hold membership?
No. Local associations must have a DR for the firm as a primary or secondary member before a licensee can be considered primary in that local association.

Should you contact the secondary association when you terminate primary membership?
Yes. If terminated, the licensee no longer holds primary membership in a local association and, therefore, cannot retain secondary membership in another association.  However, NRDS automatically inactivates secondary records if primary membership becomes inactive.

Can an active member hold two classes of membership (REALTOR® and affiliate)?
If an active licensee holds REALTOR® membership, he can also have affiliate membership. He must join at the highest class (REALTOR®), and dues must paid again as the affiliate company is the member.

Should we reply to a request from another association regarding status/standings of one of your members applying for membership in their association? What methods should be used?
Yes, it is important to promptly reply to the other association and send a letter of good standing to the association.

Are there additional dues owed when a non-member salesperson converts to REALTOR® status?
The Texas Association of REALTORS® requires the $5 IMPAC and $5 LEGAL FUND, and NAR requires the $35 IMAGE fee. Local association policies may require dues/fees be paid, and further membership requirements (orientation, application) should be completed.


NRDS

Should the spelling of the office name be standardized as proposed by NAR (i.e., C-21, Coldwell Banker, RE/MAX)?
Everyone was in agreement that NAR should standardize spelling of office names.

Should you notify the Texas Association of REALTORS® when specific changes affecting your association occur? (For example, staff changes, area codes, etc.)
Yes, contact TAR and remember to make necessary changes in NRDS.

Should you include the TREC license number on NRDS? What is the format of a TREC license number?
Yes, include the TREC license number in the member records on NRDS. TREC license number should be seven digits beginning with zero, “0.” Any license number that does not contain seven digits (either more or less) will generate a UL statement. (Note: TREClicense numbers are required in NRDS.)

Should you use all caps, proper case (or mixed case), or all lowercase when entering information into NRDS?
NRDS accepts all cases. However, TAR uses proper case only so please use proper case when entering new records or modifying existing records.

Should you reconcile your membership roster against NRDS at least once quarterly?
It’s recommended that you reconcile at least once a quarter. After uploading the information to NRDS and receiving verification from NRDS, do a download from NRDS, compare the files, and reconcile any discrepancies.

Should you reconcile your error reports from NRDS?
It is suggested that error reports be addressed immediately for accuracy on your recent upload on NRDS.

Do you reconcile your error reports from TAR?
Error reports should be addressed immediately to verify NRDS information downloaded successfully to TAR.

Is it necessary to remove non-paid NSPs (non-member salespersons) from the NRDS records prior to March 31?
Yes. Inactivate all non-paid NSPs and reduce the count in the office record before March 31 to avoid being assessed dues for those licensees.