Q&A for Brokers
Introduction
The NAR bylaws require that the annual dues of each local association of REALTORS® ("local AOR") be in an amount established annually by the NAR Board of Directors times the sum of the number of REALTOR® members of the local AOR and the number of individuals who are licensed with such REALTOR® members of the local AOR and who are not themselves REALTOR® members of the Local AOR, provided such individuals are not otherwise included in the computation of dues payable by another local AOR. In other words, the dues owed by a local AOR to NAR is based on both the number of REALTOR® members of a Local AOR and the number of non-REALTORS® licensed with those member REALTORS®.
The C.A.R. bylaws contain the same dues formula as NAR, and they also specify that the dues formula is used to calculate the dues owed by the local association to C.A.R.
In California, most local AORs adopt the California model bylaws, which contain the variable dues formula that allows the local AOR to calculate the dues of their individual REALTOR® members to include the amount that must be paid by the local AOR to NAR and CAR for non-REALTORS® licensed with REALTORS®. If the local bylaws contain the variable dues formula, the local must collect the dues in accordance with the formula. Failure to do so is a violation of the local's own bylaws, which, in turn is a violation of California law.
Regardless of the method used by the local AOR to collect its dues, each local AOR pays state dues to C.A.R and pays national dues to NAR for all the REALTOR® members and non-REALTORS® licensed with those REALTORS® in the state.
This Legal Q&A addresses the questions that are frequently asked by brokers when a local AOR in the state of California has adopted the California model bylaws, or similar dues provisions, in the local bylaws that require that a REALTOR® member's dues be calculated using the variable dues formula.
N.A.R. Dues Formula link
