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The National Association of REALTORS® model bylaws established a membership formula which all local associations are required to adopt. Dues are assessed to each principal (Designated REALTOR®) in a real estate firm on the basis of the number of real estate licensees employed or affiliated as independent contractors with the firm, partnership or corporations.

Many years ago when NAR first established its dues structure, it considered three options for assessing dues to brokers who applied for Designated REALTOR® membership:

  1. On the basis of how many salespeople work in a Designated REALTORS® office
  2. On the basis of how many properties were sold by the Designated REALTORS® office each year; or
  3. On the basis of the dollar value of the properties sold annually by the Designated REALTORS® office.

NAR selected the first option. As an example, if a Designated REALTOR® has 8 licensees working in his/her office, his dues are his own, as well as an assessment for each of those 8 licensees. If 5 of those real estate licensees voluntarily join the local association and pay dues, the Designated REALTORS® dues would be less those 5 individuals that joined; in other words they would be calculated for himself plus the remaining 3 non-member licensees.

All Designated REALTORS® and salespeople associated with them should be aware that any dues assessment paid by the Designated REALTOR® does not constitute any form of “registration” of dues” payment for any licensee that has not made an application to be a REALTOR® member of the organization. Rather, the Designated REALTOR®’s personal dues are computed on the basis of the number of non-member licensees associated with him or her.

Any individual that has not personally made application to be a REALTOR® member of the REALTOR® organization is not entitled to any of the benefits or obligations of REALTOR® membership; therefore any licensee affiliated with a Designated REALTOR® where the Designated REALTOR®’s personal dues have been increased due to this formula are not entitled to any member benefits.

Any further questions regarding the Designated REALTOR® Dues formula can be directed to the North Shore – Barrington Association of REALTORS® at 847-480-7177.