While this NAR ethics case interpretation focuses on the Confederate flag, the NAR Board of Directors discussed that all sorts of symbols could create ethics and fair housing risks.

Because it is generally in the seller’s best interests to attract the broadest number of qualified potential buyers, sellers should consider how their free expression rights may impact potential buyers and consider properly storing all controversial items from view in their listed property to avoid any accusations of offending potential buyers and fair housing discrimination against potential buyers (e.g., properly store any potentially controversial/offensive/dangerous/valuable items including flags, art, historical items, anything not G-rated, posters, weapons, morbid items, religious items, racially sensitive items, political items, and if in doubt consider erring on the side of caution and storing).

Contact the Hotline if you are unsure about an item. Ask your team of BIC, colleagues and friends with a diverse background in terms of culture, age, education, political affiliation, gender, and beliefs if you are trying to decide if an item might be offensive to some potential buyer.

G-rated is a good guideline.

Use good judgment.

There are fair housing testers in the marketplace.

Addressing this topic with your seller client can create upset, so use your persuasion and sales skills to diplomatically discuss this risk management issue and resolve it to help your seller sell their real estate in their best time frame and for their best terms.

Case #10-11: Display of Symbols

When searching real estate listings on a brokerage website, a potential homebuyer noticed a listing with the Confederate flag prominently displayed in the property photos. She filed an ethics complaint against the listing broker alleging a violation of Article 10, as interpreted by Standard of Practice 10-3 and Standard of Practice 10-5, at the local Association of Realtors. The complainant argued in her complaint that the Confederate flag is a symbol of racial exclusion and that the listing broker’s display of the photos conveyed a preference and discrimination based on race. The local Association’s Grievance Committee reviewed the complaint and forwarded it for a hearing.

At the hearing, the complainant testified that she felt threatened by the display of the Confederate flag and took it to mean that she would not be welcome in the home or the neighborhood if she were to make an offer on the property.

The listing broker testified that he should not be held responsible for what is displayed in a client’s home and could not offer an explanation for his clients’ motives in displaying the Confederate flag.

The Hearing Panel concluded that the listing broker is indeed responsible for content he displays publicly when engaging in real estate brokerage. The Hearing Panel also discussed whether the display of the flag indicated an illegal preference or discrimination.
Using the standard of whether a “reasonable person” would think display of the Confederate flag conveyed a discriminatory preference, the Hearing Panel determined that the listing broker’s inclusion, intentional or not, of photos including the Confederate flag could be reasonably construed as indicating a racial preference or illegal discrimination based on a protected class, and therefore was a violation of Article 10, as interpreted by Standard of Practice 10-3 and Standard of Practice 10-5.

The case interpretation references not just the new hate speech policy (10-5), but also Standard of Practice 10-3, which was first adopted in 1994, and says:

Realtors shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.

Posted by: Byron King on 11/16/21 (This information is only accurate as of 11/16/21. You must contact SCR for updates and changes to this information after 11/16/21 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.