East Central South Dakota Board of REALTORS® Policy Manual
Approved by the Board of Directors: 5/24/15
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Association Finances
Expense Reimbursement Policies
Dues Collection Policy & Procedures
Member Services
Educational Programs Policies
Association Spokesperson
Anti-Trust Law/Restraint of Trade Policy
Sexual Harassment
Board of Directors
Duties of the President
Duties of the President-Elect
Duties of the Secretary/Treasurer
Duties of the Immediate Past President
Duties of the State Association Directors
Duties of the Local Directors
Duties of Executive Officer
Committee Chair Responsibilities
Nominating Committee
Election Committee
Education Committee
Membership Services Committee
Good Neighbor Committee
REALTOR®/Outstanding New REALTOR®/Affiliate of the Year Selection Committee
Special Task Forces
Membership Qualifications
Membership Classifications
REALTOR® Membership Application
East Central South Dakota Board of REALTORS Policy Manual
ASSOCIATION FINANCES
AUDIT:
The Board of Directors of the East Central Board of REALTORS® will cause an audit to be conducted as
deemed necessary.
Nature of Activities: The East Central Board of REALTORS®, Inc. (the “Association”) is organized as a notfor-profit corporation under the laws of the State of South Dakota. The purpose of the Association is to
unite real estate licensees in Brookings, Moody, Kingsbury, and Miner counties of South Dakota, promote
high standards of conduct and encourage continuing education among its members.
A summary or the Association’s significant accounting policies is as follows:
Use of estimates: The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Cash and cash equivalents: For purposes of reporting cash flows, the Association considers money market
funds to be cash equivalents. Investments in certificates of deposit, all of which were purchased with
maturities of less than one year, are reported as investing activities.
Property and equipment and depreciation: Depreciation of buildings and equipment is provided over the
estimated useful lives of the respective assets on the straight-line method.
Accounting change: Effective January 1, 1999, the Association adopted FASB Statement No. 116,
“Accounting for Contributions Received and Contributions made”, which establishes accounting standards
for contributions received and FASB Statement No. 117, “Financial Statements of Not-For-Profit
Organization”, which prescribes standards for general-purpose external financial statements for not-forprofit organizations. Generally, Statement No. 116 prescribes that all contributions received, including
unconditional promises to give, are recognized as revenues in the period received at their fair values. The
Statement also requires that contributions received be distinguished between those that increase
permanently restricted, temporarily restricted and unrestricted net assets. Statement No. 117 prescribes
standards for general-purpose external financial statements which resulted in certain changes in
terminology and the way the organization’s financial statements are presented. The Statement requires the
classification of an organization’s net assets, its revenue and expenses, and gains and losses based on the
existence or absence of donor-imposed restrictions. It requires that amounts for each of three classes of
net assets (permanently restricted, temporarily restricted and unrestricted) be displayed in a statement of
financial position and that the amounts of the change in each of the three classes of net assets be
displayed in a statement of activities. The retroactive adoption of Statements No. 116 and No. 117 had no
effect on net assets (previously reported fund balance) as of December 31, 1998 or on the previously
reported revenues collected or expenses paid for the year ended December 31, 1998.
Federal income tax: The Association is exempt from federal income tax pursuant to the provisions of
Section 501 (c)(6) of the Internal Revenue Code. Business activities of the East Central South Dakota Board
of REALTORS® MLS are subject to income tax.
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East Central South Dakota Board of REALTORS Policy Manual
Revenue recognition: Dues are recognized as income in the period in which they are earned. Contributions
are recognized as income at their fair values in the period in which they are received.
Deferred revenue: The deferred revenue is from prepaid dues and advertising and will be recognized as
revenue in the following year.
INVESTMENTS:
 The Board of Directors has the authority to make decisions and monitor the borrowing of funds for the
Association. Investments will be made into federally insured accounts with specific approval by the
Board of Directors.
NSF POLICY:

After ten (10) days following the written notification of the NSF check if monies are not paid by the
delinquent member along with a $25.00 service charge to the Association then this matter will be
forwarded to the Real Estate Commission for investigation. If the NSF check amount and $25.00 service
charge are not collected by the end of the calendar year, then the Association may add the total
delinquent amount to the membership dues.
RESERVES:
 The policy of the Association is to secure operating expenses in reserves for future large expenditures.
SIGNATORY POLICY:
 Establish signatory policy allowing only the President, Immediate Past President, President Elect,
Secretary/Treasurer and Association Executive from the East Central Board of REALTORS® authorized
to sign checks. The policy of the Association is to have at least two (2) signatures for all ECSDBR
accounts.
TRAVEL EXPENSE REIMBURSEMENT POLICY
All requests for reimbursement must be in the form of a voucher. The expense voucher along with a
written or verbal report from the meeting and all applicable receipts substantiating the amount must be
received in the Association office no later than 30 days after the conclusion of the meetings.
SDAR BOARD OF DIRECTOR AND COMMITTEE MEMBERS:
In 2015, there are 5 committee members are currently budgeted for SDAR Board of Director and
Committee Meetings. Expense vouchers will only be paid for the meetings that were attended.
One (1) Single Day Trip: $75
One (1) Overnight Trip: $175
Two (2) Two night trip: $275
PRESIDENT ELECT:
 $500 is budgeted for the NAR Leadership Summit.
REALTOR® OF THE YEAR:
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East Central South Dakota Board of REALTORS Policy Manual
 Travel compensation will be voted on and approved by the Board of Directors each year.
RISING STAR:
 Travel compensation will follow the same reimbursement structure as the SDAR Board of Director and
Committee Meetings.
EXECUTIVE OFFICER:
 Shall be reimbursed actual expenses, with receipts. Mileage will be at the government rate.
 In 2015, $1,750 is budged for the EO to attend state meetings as well as the yearly convention
 $500 is budgeted for the NAR leadership conference.
DUES COLLECTION POLICY & PROCEDURES
The following is a summary of the procedures to follow for dues billing, collection and remittance:
 Processing deadline for remittance to SDAR of all State and National dues is established annually by
NAR and published each December by SDAR.
 SDAR will provide membership renewal forms for the ECSDBR
 Local Boards collect ALL levels of the dues: Local, State and National. Local Boards should cut separate
checks to SDAR and NAR in total amounts. These two checks along with SDAR’s dues remittance are
then mailed to SDAR for processing.
 Dues payment by credit card is acceptable. If REALTOR® members wish to pay their dues by credit
card, they provide credit card information on membership renewal form. SDAR is the Point of Entry for
ECSDBR.
 Payment of next year’s annual dues in current year is allowed for tax purposes. Remit early payments to
SDAR in time for checks and credit cards to be processed prior to the last business day of the year.
SDAR will promulgate cutoff dates.
MEMBER SERVICES
The policy of the East Central Board of REALTORS® to maintain a progressive posture in identifying,
developing, providing and promoting programs and services which provide tangible benefits to
Association Members as well as the Association itself, and to use to the fullest extent its resources, both
human and financial, in the pursuit of the same.
EDUCATIONAL PROGRAMS POLICIES
It is the policy of the Association to offer education programs that are of benefit and interest to the
membership. The Education and Membership Services Committees are charged with periodically surveying
the membership to determine what programs they have a need for and with obtaining the desired
training.
SDAR GRI CO-SHARE AGREEMENT:
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East Central South Dakota Board of REALTORS Policy Manual
 A mutually beneficial partnership between the Association and the South Dakota Association of
REALTORS®. By sharing the work and expenses involved with sponsoring a GRI course, both the Local
Boards and the State Association benefit, usually realize a net profit.
Before entering into a co-share agreement with SDAR, Local Boards should do the following:
1. Select a Board Member, usually local board education committee chair or representative to the
SDAR Education Committee, to handle the local board’s GRI co-share responsibilities
2. Poll the membership for topics of interest in a GRI elective course ~ Potential topics include, but are
not limited to: Technology, Internet, Real Estate Technology, Property Management, Professional
Standards, Interpretations & Case Studies, Ethics Arbitration, Risk Reduction, Business Development
Techniques, Personal Assistants, Sales and Marketing, Negotiating, Personal Marketing,
Communications, Advanced Listing Techniques, Prospecting and Listing, Pricing Property,
Construction, Anatomy of a House, Home Inspection, Common Defects in Residential Real Estate,
Selling New Construction, Land Use and Development, Advanced Real Estate Finance, Appraisal,
Real Estate Taxation, Real Estate Investment, Commercial and Investment Real Estate,
Environmental/Health Issues, Law and Legal Issues, Contract Law, Changes in License Law (1998),
Advanced Selling Skills, Principles of Real Property, Buyer Brokerage, Current real estate trends,
3. Develop a new elective course, in conjunction with the SDAR Education Committee that meets the
criteria of a GRI elective course (several courses are already developed)
4. Criteria of a GRI elective course: Must be a real estate training course and be relevant to current
topic areas and related learning outcomes. Learning goals or outcomes are described and the
amount of time devoted to each course topic or module is sufficient to allow coverage of learning
objectives; learning objectives are measurable and will produce the specified learning outcomes.
5. Once Local Boards have done the above in preparation for the co-share agreement, a contract
between SDAR and the local board is entered into. By signing a contract with SDAR, the local board
accepts 50% financial responsibility for the course (net gain OR net loss). Additionally,
responsibilities for sponsoring a GRI elective course with the State Association will be shared as
follows:
6. Responsibilities for sponsoring a GRI course will be split between the Local Board and SDAR
with the Local Board handling on-site arrangements and SDAR handling Administrative
arrangements.
7. Upon completion of the course, SDAR will complete the expense tracking, and send the local
board their share of the net proceeds
ASSOCIATION SPOKESPERSON
The President or whoever he/she may designate has sole authority to release information on
positions of the East Central Board of REALTORS® to the public and to the media.
All requests to the East Central Board of REALTORS® from local, state, or national media shall be
referred to the Executive Committee in the following order:
President
President-Elect
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East Central South Dakota Board of REALTORS Policy Manual
Secretary-Treasurer
Immediate Past President
Association Executive
Members of the Executive Committee are the only Association authorized individuals to speak on
behalf of ECSDBR. It is understood the media contacts members throughout the Association and
acknowledged that those members do not necessarily represent ECSDBR point of view.
Annually, following the installation of new officers, local media outlets are provided with names,
position, cell phone numbers, and email addresses of the new Executive Committee.
ANTI-TRUST LAW / RESTRAINT OF TRADE POLICY
BACKGROUND
 The most important antitrust statues relating to association activities are the Sherman Act (Section 1)
and the Federal Trade Commission Act (Section 5).
 Section 1 of the Sherman Act prohibits "contracts, combinations, or conspiracies... in restraint of trade".
The act prohibits any understanding affecting the price of a product (or service) regardless of the
purpose of the understanding.
 The Sherman Act is both a criminal conspiracy statute and a statute that can give rise to civil damages.
If a member merely sits by at a meeting while other members of the Association engage in an illegal
discussion concerning price-fixing, he/she may be held criminally responsible, even though he/she said
nothing during the discussion.
 The Federal trade Commission Act prohibits "unfair methods of competition in or affecting commerce".
Unlike the Sherman Act, the Federal Trade Commission Act reaches anti-competitive acts committed by
single persons or companies, whether or not there is any agreement or "combination"; like the
Sherman Act, it also covers joint actions.
 South Dakota has enacted a provision similar to the Sherman Act which makes a violation a criminal
offense and creates an action for damages in favor of the party who has been harmed. The Attorney
General of South Dakota has broad enforcement powers of these provisions.
POLICY
 The East Central South Dakota Board of REALTORS® is complying with and intends to continue to
comply fully with antitrust statutes and hereby adopts the following guidelines for the Association
concerning Restraint of Trade:
1. The staff or legal counsel shall periodically update members concerning restraint of trade problems.
2. The staff shall obtain legal counsel review of all new Association programs or changes in existing
programs that may have potential restraint of trade implications.
3. Association meetings shall be regularly scheduled, whenever possible.
4. The staff may obtain legal counsel review of any meeting agenda items that may have potential
restraint of trade implications.
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East Central South Dakota Board of REALTORS Policy Manual
5. Any action which had the effect of rejecting a membership application or suspending or expelling a
member should be reviewed by legal counsel before becoming final.
6. Neither governance personnel; governance advisory personnel; nor staff shall communicate with
officials of the Federal Trade Commission or the Antitrust Division of the Department of Justice without
prior approval of the Association President and Executive Vice President.
7. The following topics shall be avoided at an Association meeting:
a) Current or future professional service charges
b) "Fair" profit levels
c) Increases or decreases in professional service charges
d) Standardization or stabilization of professional service charges
e) Methods of setting professional service charges
f) Cash discounts
g) Credit terms that may be extended by real estate office
h) Control of sales or services
i) Allocation of markets
j) Refusal to deal with a corporation because of its pricing or distribution practices
k) Whether or not the pricing practices of a colleague are ethical, appropriate, unethical or
constitute an unfair trade practice.
CODE OF CONDUCT AND SEXUAL HARASSMENT POLICY
 The members and staff must work together effectively as a team to accomplish the Association's goals.
Such joint efforts are enhanced by an environment of courtesy and mutual respect. Offensive behavior
not only impedes the effectiveness of the joint efforts, but can also create exposure to legal liability.
 The Association fully supports the rights and opportunities of all its Directors, Committee Members and
Employees to work in an environment free from discrimination and without subjugation to sexual
harassment.
 Sexual harassment does not include occasional compliments or voluntary relationships between
Members and staff.
 Sexual harassment may be overt or subtle. It includes behavior that is not welcome, that is personally
offensive, that fails to respect the rights of others, that lowers morale and that, therefore, interferes with
the effectiveness of our work. Sexual harassment may take different forms. One specific form is a
demand for sexual favors. Other forms of harassment include:
 Verbal: Sexual innuendoes, suggestive comments, jokes of a sexual nature, sexual propositions,
threats.
 Non-Verbal: Sexually suggestive objects or pictures, graphic commentaries, suggestive or
insulting sounds, leering, whistling, obscene gestures.
 Physical: Unwanted physical contact, including touching, pinching, brushing the body, coerced
sexual intercourse, assault.
 Whatever form it takes -- verbal, non-verbal or physical -- sexual harassment is insulting and
demeaning to the recipient and cannot be tolerated. Sexual harassment of any Member or staff by any
Member or staff will not be tolerated. All staff and Members will be expected to behave accordingly
and take appropriate measures to ensure that such conduct does not occur. Appropriate disciplinary
action will be taken against any staff or Member who engages in sexual harassment.
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East Central South Dakota Board of REALTORS Policy Manual
 Any Director who believes he or she has been the subject of sexual harassment should report the
alleged act immediately to the President. If the complaint involves the President, the complaint should
be brought to the attention of the Vice President.
 Any Committee Member who believes he or she has been the subject of sexual harassment should
report the alleged act immediately to the Chairman or Vice-Chairman of the committee. If the
complaint involves the Chairman or Vice-Chairman, the complaint should be brought to the attention
of the director who is the Committee Liaison.
 Staff should follow the complaint procedures set forth in the Association's Office Policies.
BOARD OF DIRECTORS
The government of the Association is vested in the Board of Directors. The Board shall administer the
finances of the Association and shall have sole authority to appropriate monies.
MEETINGS
 The Board of Directors shall on a regular basis, the place and dates to be determined by it. Special
meetings may be called at any time as specified in the Bylaws.
ATTENDANCE
 Your position as a ECSDBR Director requires attendance at all meetings. The Board of Directors will
consider excused absences on an individual basis with prior written notification to the Executive Vice
President. Valid excuses are personal illness, family crises, or State/National Association Business.
Three unexcused absences will be construed as resignation from the office or directorship and Board of
Directors may declare the office or the directorship vacant.
MEMBERSHIP ON THE BOARD OF DIRECTORS

The Board of Directors shall consist of the Elected Officers, the Immediate past President, 3 Local
Directors.
MEETING CONDUCT
 All Directors are urged to attend and remain throughout the scheduled meeting in order to assure the
necessary quorum is maintained for conducting the Association's business.
 "Robert's Rules of Order", latest edition, is the authority governing all Association meetings, except
where otherwise provided, and when not in conflict with the Constitution and Bylaws.
RESPONSIBILITIES
 As a Member of the Association is governing body, your major responsibility is to represent the entire
membership of the Association.
 In evaluating a position, keep in mind that the Board of Directors is responsible to all Members and
must place the welfare of the total Association ahead of geographic or factional consideration.
 It is important that you express your viewpoints and share your opinions on issues before the
Association.
 Stay well informed of the problems and issues facing the Association. The Association Staff is available
for answering questions and giving you necessary background information.
 Directors serve on various Association Committees; they should bring to the attention of the Board
items of concern to their respective committees.
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East Central South Dakota Board of REALTORS Policy Manual
 Communicate the knowledge and experience you have gained at each meeting with your fellow
REALTORS®. Keep your fellow REALTORS® up to date and informed so that the lines of
communication will remain open and active and so the membership is aware of the value of belonging
to the Association.
PRESIDENT (1 year term)
DUTIES OF THE PRESIDENT:
 The President shall be the chief elected officer and spokesperson of the Association and shall perform
such duties as are usual to the office. He/she shall also serve as Chairman of the Board of Directors. It
is the duty of the President to preside at all meetings of the Association and the Board of Directors,.
 Committee and Task Force Appointments
 The President has the power to appoint or dissolve all committees and task forces, subject to
approval of the Board of Directors, except those standing committees, which require a change in
the Bylaws.
 Annually, the President appoints a Chairperson and Vice chairperson to all standing and some
special committees. However, it is recommended the President appoint the chairperson and the
President-Elect appoint the Vice-Chairperson. The President also appoints Members to these
committees.
 It is recommended the President consult with the President-Elect in regard to all committee
appointments especially those of the Vice Chairperson so the greatest amount of continuity and
committee leadership will be maintained. The President serves as an ex-officio Member (without
the privilege to vote) on all committees.
 Business Affairs of the Association and Official Documents
 The President is charged with the responsibility of conducting business affairs of the Association
and is assisted by the other Officers, Directors, Association Executive and staff. It is the
responsibility of the President to sign any official contracts or documents that the Board of
Directors authorizes to be executed.
LOCAL LEVEL
 The President is expected to serve in a liaison capacity on any governmental or cooperative committee
that would be advantageous to the Association.
 The President should work closely with the Executive Committee to maintain budgetary control.
 The President should have all Committee Chairperson appointed and Committee Members named in
time of the State Leadership conference in early October. The Committee Chairpersons should then be
instructed of their duties and charged with the responsibility of carrying them to completion.
 The Presidents advice will be sought in detail planning (agenda, etc.) for meetings, hospitality
arrangements, head table seating, hosting of dignitaries, etc.
STATE LEVEL
 The President is expected to attend the four SDAR quarterly meetings and to attend and participate
in the annual Leadership Conference.
 The President should serve on a SDAR Committee during their term as President
STAFF ASSISTANCE TO PRESIDENT
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East Central South Dakota Board of REALTORS Policy Manual
 All correspondence requiring your personal reply will be brought to your attention. Routine letters will
be written from the Association Office.
 Staff will keep you informed and up-to-date on problems and situations that need your attention and
solutions.
 Prepare agendas, minutes, programs, and financial statements for use during meetings.
PRESIDENT-ELECT (1 year term)
DUTIES OF THE PRESIDENT-ELECT
 It is the duty of the President-Elect to perform such duties as may be specified by the President or the
Board of Directors
 The President-Elect shall perform the duties of the President in case of any scheduled or unscheduled
absence of the President.
 In the absence of unforeseen events, he/she will succeed to the Presidency subject to the elective
process.
REPRESENTATIVE FOR THE PRESIDENT
 On occasion, the President-Elect will be called on by the President to represent the Association at
meetings, dinner, media and business sessions where representation from the Association is deemed
appropriate.
TEAM EFFORT
 The President-Elect provided input to the President in regards to the selection of Committee Members,
Committee Chairpersons and most importantly committee Vice Chairpersons.
 It is recommended that the President appoint the Chairpersons and the President-Elect appoint the
vice Chairperson. These selections must be finished by the date of the Fall Meeting, so appointments
can be ratified by the Board of Directors.
 During the President-Elect's year in office, he/she should make plans for the following year when
he/she will assume the leadership of the Association.
NATIONAL LEVEL
 You are encouraged to attend the Leadership Summit in Chicago.
SECRETARY/TREASURER (1 year term)
DUTIES OF THE SECRETARY/TREASURER
 It is the responsibility of the Secretary/Treasurer to serve as Chairperson of the Budget Committee.
 The Secretary/Treasurer shall monitor the Association Executive and make sure that full and accurate
accounts of the receipts and disbursements of the funds of the Association are on file for the Budget
Committee. He/she shall oversee the proper recording of all minutes of the Association and is responsible for
monitoring all the Association's governing documents.
 The executive committee shall set and approve the budget annually. The budget shall be finalized for
presentation to the general membership at the November Meeting.
 The Secretary/Treasurer will work closely with the various Committee Chairpersons of Association to
determine the financial needs of that committee, before finalizing the annual budget.
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East Central South Dakota Board of REALTORS Policy Manual
 The Secretary/Treasurer shall submit to the Board of Directors an accounting of financial reports and the
financial condition of the Association, which reports will be e-mailed before the called meeting. A report will
be given at each meeting of the Board of Directors.
 The Secretary/Treasurer will monitor the Association Executive in investing the Associations reserve funds to
insure maximum protection and maximum yield, to insure proper accounting procedures are used by the
Association and complete control of income and expenses are maintained at all times.
 The Secretary/Treasurer is responsible for determining, as far in advance as possible, the Association's
financial needs, and to make proper recommendations to the Board of Directors when dues increases are
predicted.
 The Secretary/Treasurer and the Association Executive shall analyze income and cost projections as to the
operation of the Association.
IMMEDIATE PAST PRESIDENT (1 year term)
DUTIES OF THE IMMEDIATE PAST PRESIDENT
 The Immediate Past President serves the Association as a Member of the Board of Directors, assisting
the Board with the experience and knowledge gained from previously held offices, and is a voting
Member.
 The Immediate Past President serves on any other committees as agreed upon between the Immediate
Past President and the President.
SDAR ASSOCIATION DIRECTOR (3 year term)
 The Board of Directors is the legislative and decision making body which acts on behalf of Members to
govern activities of the South Dakota Association of REALTORS®. This is an important and solemn
responsibility because decisions of the Board of Directors in large measure determine the present and future
course of our Association and the Services available to over 1,600 members.
 Responsibilities of the Board of Directors include the following matters of business:
 Action on recommendations from Committees
 Election of Officers
 Annual Association budget, financial statements and audit
 Appointments to the Executive Committee, Finance Committee and Committee Chairman and Vice
Chairman
 Recipients of the Distinguished Service Award
 Adoption or amendment of the Corporate Charters, bylaws and other governing documents.
 Act as liaison between the State and Local Association by keeping the State Association informed of the
activities of the Local Association and by presenting to the Local Association Board of Directors any programs
or suggestions of the State Association.
 SDAR Directors shall endeavor to attend all State Association and Local Association meetings and report
regularly to the Local Association President.
ECSDBR LOCAL DIRECTOR (3 year term)
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East Central South Dakota Board of REALTORS Policy Manual
 The Board of Directors is the legislative and decision making body which acts on behalf of Members to
govern activities of the East Central South Dakota Board of REALTORS®. This is an important and solemn
responsibility because decisions of the Board of Directors in large measure determine the present and future
course of our Association and the Services available to over 70 members.
 Responsibilities of the Board of Directors include the following matters of business:
 Action on recommendations from Committees
 Annual Association budget, financial statements
 Committee Chairman and Vice Chairman Appointments
 Adoption or amendment of the corporate bylaws and other governing documents.
 Act as liaison between your local area and the Association, keeping both the REALTORS® in your town
informed of the activities of the Local Association and by presenting to the Local Association Board of
Directors any programs or suggestions of the local REALTORS®.
 ECSDBR Directors shall endeavor to attend all Association meetings and report regularly to the Local
Association President.
 Acts as a Governmental Affairs committee member for their community.
ASSOCIATION EXECUTIVE
 The Association Executive (AE) is responsible to the Board of Directors for the effective administration of the
East Central South Dakota Association of REALTORS® and the Multiple Listing Service that is operated as a
committee of the Association. The AE recommends and participates in formulating the organization’s
mission, goals, objectives, and related policies. Within the framework, the AE plans, organizes, coordinates,
controls, and directs the Organization’s programs and activities.
COMMITTEE CHAIR RESPONSIBILITIES
COMMITTEE OBJECTIVES
 The objectives and responsibilities of your committee are explained in its Statement of Purpose as set
forth in the ECSDBR Policy Manual distributed to all Committee Members at the first meeting of the
year. Topics for discussion or prospective motions should be measured against the Statement of
Purpose. The Statement of Purpose constitutes the Committee’s authority to operate. Changes in the
statement of purpose for a committee must be approved by the Board of Directors.
COMMITTEE CHAIR RESPONSIBILITIES
 Attend all ECSDBR meetings both General Membership and Board of Directors.
 Accept, support and communicate the Committee’s charge.
 Exercise leadership and exhibit a positive attitude.
BEFORE THE MEETING
 Review committee Statement of Purpose.
 Develop the Committee meeting agenda.
 Review the previous minutes of the Committee. Make certain that pending matters are discussed at the
upcoming meeting.
 Report to the Committee actions by the Board of Directors and any motions from the previous meeting.
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East Central South Dakota Board of REALTORS Policy Manual
 Demonstrate active participation and interest in the Association. Command prestige and respect from within
the industry or profession.
 Have knowledge of the subject in which the Committee is involved and think in terms of Association goals.
REPORT TO THE BOARD OF DIRECTORS
 You are responsible for presenting a brief summary of Committee actions, recommendations and
Committee action items to the Directors at each Board of Directors meeting.
 You are allowed a maximum of five minutes for your report.
 Please submit a written copy of your report to the recording secretary.
AFTER THE MEETING
 Review the minutes of your meeting carefully.
 Monitor actions assigned to Committee members.
 Make certain that all actions by the Committee have been acted upon and all interim business is
accomplished.
NOMINATING COMMITTEE
PURPOSE:
 To solicit, recommend and publish candidates for each office of the East Central South Dakota Board of
REALTORS®.
DUTIES:
 The President shall appoint a nominating committee consisting of at least three REALTOR® members,
no more than two (2) from one office.
THE NOMINATION PROCESS:
 Under the Bylaws of the East Central Board of REALTORS®, Article XI - Section 4(a): “Members not
named in the final report but wishing to run for President Elect, Vice President or Secretary/Treasurer
may apply by petition with signatures of twenty-five (25) percent of the active membership. The
petition must be filed with the Association fourteen (14) days in advance of the membership election
meeting. In the event all nominations for an office have been withdrawn, nominations may be made
from the floor at the annual membership meeting by any REALTOR® member of the Association.”
 Please note: Nominations from the floor may be made only in the event all nominations for an office
have been withdrawn.
MEETING TIME:
 The Nominating Committee shall meet two (2) months before the annual election and prepare a slate
of candidates for each office that is vacant. The report of the Nominating Committee shall be in writing
and instructions as outlined in the ECSDBR bylaws regarding additional nominations shall be published.
ELECTION COMMITTEE
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East Central South Dakota Board of REALTORS Policy Manual
PURPOSE:
 To serve when necessary in an appointed position by the President to count election ballots during
contested races of the East Central Board of REALTORS® elected positions.
DUTIES:
 The President shall appoint an Election Committee who shall not be the Nominating Committee,
consisting of three (3) REALTOR® members with no more than 2 of one office. In case of a tie vote of
the top two (2) or more vote recipients there shall be a run-off election of those candidates. If there are
three (3) or more nominees vying for a position and no one (1) candidate receives a majority of the
votes cast, a run-off election shall take place between the top two (2) vote recipients.
MEETING TIME:
 They shall convene when needed in contested ECSDBR elected office positions to count election
ballots. If there should be no contested races for ECSDBR elected office the committee will not
convene.
EDUCATION COMMITTEE
PURPOSE OF COMMITTEE:
 To administer the education programs of the ECSDBR. To provide member education regarding the
latest issues, legislative and political trends relating to real estate.
AREAS OF RESPONSIBILITIES:
 Works with SDAR to bring classes locally and carry responsibilities.
MEMBERSHIP SERVICES COMMITTEE
PURPOSE OF COMMITTEE:
 To enhance Membership Services of ECSDBR which promote professionalism, increase awareness of
industry change and offer services of benefit to our members.
AREAS OF RESPONSIBILITIES:
 To promote and publicize the activities of the Association and the members.
 To arrange for meeting programs of interest and benefit to the membership
 To review and recommend programs to be offered to members by conducting periodic surveys
 To promote worthy community service projects
 To promote REALTOR® Image awareness.
DUTIES:
 Publication/Communication
 Feature regular articles on the Code of Ethics and to publish all updates and revisions to the
Code of Ethics from NAR.
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East Central South Dakota Board of REALTORS Policy Manual

 Ensure Web Site and Home page are updated on a periodic basis
Membership Retention/Benefits
 Consider membership contests and promotions.
 Arrange for interesting and beneficial meeting programs
 Conduct annual membership wants and needs survey
 Develop new member information packets and keep current for each new REALTOR®.
 Recognize and honor ECSDBR Life Member recipients each year.
 Work closely with the Education Committee to provide valuable orientation programs for new
members.
 Recruit new Affiliate members
 Recruit new REALTOR® members
 Public Relations/Community Service
 Provide sample press releases on special ECSDBR events.
 Increase REALTOR® awareness of REALTORS® trademark.
 Promote community service projects and arrange for contests within localities.
 Support and promote NAR’s public awareness campaign.
MEETING TIMES:
 The Membership Services Committee shall meet at the request of the President or on the call of the
Chairperson at such times as either may consider necessary.
REPORTS:
 The Committee shall report its actions to the ECSDBR Board of Directors at the next regularly scheduled
meeting. A written report will be submitted to the ECSDBR staff for proper filing.
GOOD NEIGHBOR COMMITTEE
PURPOSE OF COMMITTEE:
 To give back something to the local communities to link REALTOR® members to a common cause in
the East Central Board of REALTORS®.
AREAS OF RESPONSIBILITIES:
 Responsible for administering funds to different organizations in the community.
MEETING TIME:
 The Good Neighbor Committee shall meet at the request of the President or on call of the Chairperson
at such times as either may consider necessary.
REPORTS:
 The Good Neighbor Committee shall report its actions to the ECSDBR Board of Directors at each
regularly scheduled meeting. A written report of each meeting will be submitted to the ECSDBR staff for
proper filing.
AWARDS
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East Central South Dakota Board of REALTORS Policy Manual
LOCAL REALTOR® OF THE YEAR
SELECTION AND PRESENTATION
The purpose of the REALTOR® of the Year (ROTY) program is to recognize the active member of the local
board who has provided outstanding service to his/her profession and his/her community during the year.
As a sidelight of the program, each REALTOR® of the Year becomes a candidate in the state association’s
competition. The state winner will be recognized nationally.
Nomination forms are made available to all active board members at a monthly board meeting to be filled
in and returned by a specified date. As the forms come in, the members of the committee sift through
them, adding recommendations of their own, if they wish.
The last three (3) REALTORS® of The Year will comprise the selection committee. The local board
president will administer the meeting, but does not have a vote. ECSDBR will comply with the state
guidelines on the selection process.
After the committee has made its choice, a letter should be sent to the State Award Committee listing the
qualifications of the local ROTY for use in selecting the state ROTY.
At the time of presentation, the board should have press releases ready to be distributed to area
newspapers with the winner’s photograph.
LOCAL “Rising Star”
SELECTION AND PRESENTATION
The purpose of the Rising Star award is to recognize a new member (5 years or less) of the local board
who has provided outstanding service to his/her profession and his/her community during the year. This
recognition is given annually if a qualified candidate is found.
Nomination forms are made available to all active board members at a monthly board meeting to be filled
in and returned by a specified date. As the forms come in, the members of the committee sift through
them, adding recommendations of their own, if they wish.
The last three (3) REALTORS® of The Year will comprise the selection committee. The local board
president will administer the meeting, but does not have a vote. ECSDBR will comply with the state
guidelines on the selection process.
After the recipient has been chosen the name of the winner is kept secret until the presentation at an
awards or installation banquet. The award itself may be in any form desired. Usually, it is a plaque or
trophy available from a local distributor.
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East Central South Dakota Board of REALTORS Policy Manual
At the time of presentation, the board should have press releases ready to be distributed to area
newspapers with the winner’s photograph.
LOCAL “AFFILIATE OF THE YEAR”
SELECTION AND PRESENTATION
The purpose of the Affiliate of the Year award is to recognize the active affiliate of the local board who has
provided outstanding service to the real estate profession and local community during the year.
The last three (3) REALTORS® of The Year will comprise the selection committee with the local board
president administering the meeting.
At the time of presentation, the board should have press releases ready to be distributed to area
newspapers winner’s photograph.
SPECIAL TASK FORCE
PURPOSE:
 The President of the East Central South Dakota Board of REALTORS® may appoint a small group of
members to serve on a special task force as needed. The task force shall be dissolved upon
completion of a specific assignment and submittal of a written report to one of the standing
committees of the Association. The Board of Directors shall be notified of the appointment of all
members who will serve on a special task force and the purpose of their assignment.
DUTIES:
 The duties of a special task force shall be defined and assigned by the President. A special task force is
appointed when a need or project is identified. The work of the task force usually is completed within
an appropriate time frame and reports to the Board of Directors or designated committee at their next
regularly scheduled meeting or the meetings so designated by appointment. The standing committee
will then act upon the report of the task force and bring a recommendation to the Board of Directors
for consideration.
MEETING TIME:
 The special task force will meet at the call of the task force chair at a time and place that is convenient
to most task force members. The task force may conduct business by using a telephone conference
call, facsimile machine, electronic mail and/or other means of communication.
MEMBERSHIP QUALIFICATION CRITERIA OF
THE NATIONAL ASSOCIATION OF REALTORS®
FOR APPLICANTS FOR REALTOR® MEMBERSHIP
 The following criteria of membership are identical in purpose with the Membership Criteria for
REALTORS® who are principals in a real estate firm. They are the most rigorous qualifications which
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East Central South Dakota Board of REALTORS Policy Manual
may be required by a Board of REALTORS® in the consideration of applicants for REALTOR®
Membership who are other than sole proprietors, partners, corporate officers or branch office
managers of real estate firms and applicants for REALTOR-ASSOCIATE® Membership. These were
developed by the Membership Committee of the National Association to provide "reasonable and
nondiscriminatory written requirements for membership." The Board may elect to adopt all, some, or
none of the Criteria, but those which are adopted must be included in the Board's Bylaws. The
following Criteria and explanatory notes have the approval of legal counsel, National Association, and
were approved by the Board of Directors of the NATIONAL ASSOCIATION OF REALTORS® in
November, 1974, and amended in 1983, 1990 and 1996.
 Applicants for REALTOR® Membership who are other than sole proprietors, partners, corporate
officers or branch office managers of a real estate firm or applicants for REALTOR-ASSOCIATE®
Membership may be required to supply satisfactory evidence that they have:
1.
A VALID REAL ESTATE LICENSE (AND ARE ACTIVELY ENGAGED IN THE REAL ESTATE BUSINESS AND
ITS RECOGNIZED BRANCHES).
 Explanation: "A valid real estate license" is intended to mean that applicants for REALTOR®
Membership who are other than sole proprietors, partners, corporate officers or branch office
managers in a firm engaged in the real estate business must maintain a current, valid real estate
broker's or salesperson's license or must be licensed or certified by an appropriate state regulatory
agency to engage in the appraisal of real property.
 The term "actively engaged" in business contemplates that the licensed or certified applicants will have an
office for the conduct of real estate business and shall hold themselves out to the public as being actively
engaged in the real estate business, and shall actively seek and service real estate business. It does not
contemplate that applicants must devote all or even a majority of their time to the real estate business or
derive any particular percentage of their income from such business. It does not contemplate that
applicants shall have no other job or occupation.
 Where question arises as to whether or not applicants are "actively engaged" in the real estate business,
they shall be given the opportunity to present evidence concerning the actual and intended scope of
their business activities. In the event any applicant for membership is rejected on the basis of failure to be
"actively engaged," the Board should promptly seek a declamatory judgment from a court of competent
jurisdiction affirming the propriety of such rejection.
2. EMPLOYED BY OR AFFILIATED WITH A REALTOR® AS AN INDEPENDENT CONTRACTOR.
 Explanation: The basic qualification is employment or affiliation with a REALTOR®. The qualification
is met by individuals regardless of whether they operate out of the principal office of the
REALTOR® or a branch office.
3. MUST MAKE WRITTEN APPLICATION FOR REALTOR® OR REALTOR-ASSOCIATE® MEMBERSHIP IN
THE BOARD.(Such application must be a voluntary act by applicants, and cannot be a requirement of the
Board.)
 Explanation: The Board may not require that salespersons affiliated with a REALTOR® be Members
of the Board. Neither can the Board require that the REALTOR® have such a requirement.
4. MEMBERSHIP FILE
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East Central South Dakota Board of REALTORS Policy Manual
 Qualification: Associations may, at their discretion, consider the following in determining an
applicant's qualifications for membership:
a) All final findings of Code of Ethics violations and violations of other membership duties in any
other association within the past three (3) years
b) Pending ethics complaints (or hearings)
c) Unsatisfied discipline pending
d) Pending arbitration requests (or hearing )
e) Unpaid arbitration awards or unpaid financial obligations to any other association or
association MLS
 "Provisional" membership may be granted in instances where ethics complaints or arbitration requests (or
hearings) are pending in other associations or where the applicant for membership has unsatisfied
discipline pending in another association (provided all other qualifications for membership have been
satisfied). Associations may reconsider the membership status of such individuals when all pending ethics
and arbitration matters (and related discipline) have been resolved or within six months from the date
that provisional membership is approved if such matters have not been resolved. Provisional members
shall be considered REALTORS® (or REALTOR-ASSOCIATES®, if applicable) and shall be subject to all of
the same privileges and obligations of REALTOR® or REALTOR-ASSOCIATE® membership.
 If a member resigns from another association with an ethics complaint or arbitration request pending, the
association may condition membership on the applicant's certification that he/she will submit to the
pending ethics or arbitration proceeding (in accordance with the established procedures of the
association to which applicant has made application) and will abide by the decision of the hearing panel.
5. SIGNIFIED THEIR INTENTION TO ABIDE BY THE NATIONAL ASSOCIATION OF REALTORS® CODE OF
ETHICS.
6. SIGNIFIED THEIR INTENTION TO ABIDE BY THE CONSTITUTION, BYLAWS, POLICY AND RULES AND
REGULATIONS OF THE LOCAL BOARD, THE STATE ASSOCIATION, AND THE NATIONAL ASSOCIATION
OF REALTORS® .
 Explanation: By such agreement in the application, applicants assume a continuing membership
obligation.
7. COMPLETED THE BOARD INDOCTRINATION COURSE.
 Explanation: It is presumed that the Indoctrination Course to be completed as a prerequisite for
membership is confined to the subjects of the Constitution, Bylaws, policies, rules and regulations
of the local Board, State Association, and the National Association as well as the Code of Ethics of
the National Association. It is not contemplated that completion of the Indoctrination Course
covering topics included in the licensing examination will be required for qualification.
8. Associations may require that applications for membership submitted by non-principal brokers, sales
licensees, and licensed or certified appraisers be "acknowledged" by a REALTOR® who is a sole
proprietor, partner, corporate officer, or branch office manager of the firm.
IMPORTANT NOTE TO MEMBER BOARDS:
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East Central South Dakota Board of REALTORS Policy Manual
 When a Board declines to accept an applicant on the basis of failure to satisfy Point 1 (actively engaged), it is
recommended that the Board seek a declaratory judgment in the civil courts, affirming its decision.
 Board legal counsel will advise as to the proper form and procedures in seeking a declaratory judgment. A
sample form which may be used for this purpose is included in the Code of Ethics and Arbitration Manual
and the Membership Policy and Board Jurisdiction Manual. No petition should be prepared except by Board
legal counsel.
MEMBERSHIP CLASSIFICATIONS - ECSDBR
Article II of the Bylaws of the East Central South Dakota Board of REALTORS® outlines the following
membership classifications:
1. REALTOR® Member shall be any individual engaged in the real estate profession as a principal,
partner, or officer of a corporation who holds REALTOR® Membership in this Association. The Board
of Directors may establish procedures and standards whereby salespersons, property managers and
licensed or certified appraisers affiliated with a REALTOR® Member may become REALTOR®
Members of the Association.
2. Institute Affiliate members shall be individuals who hold a professional designation awarded by a
qualified Institute, Society or Council affiliated with the NATIONAL ASSOCIATION OF REALTORS® that
addresses a specialty area other than residential brokerage or individuals who otherwise hold a class of
membership in such Institute, Society or Council that confers the right to vote or hold office. Any such
individual, if otherwise eligible, may elect to hold REALTOR® membership, subject to payment of
applicable dues for such membership.
3. Affiliate Members shall be real estate owners and other individuals or firms who are Affiliate Members.
4. Life Members shall be those REALTORS® who have held membership in this Association for a period
of at least twenty-five (25) years and who have contributed notable service to the Association, the real
estate profession, and the public. Members must be nominated for life membership by their local
Board.
5. REALTOR® Emeritus Members shall be REALTORS® who have held membership in the NATIONAL
ASSOCIATION OF REALTORS® for a period of fifty (50) years, upon certification by the NATIONAL
ASSOCIATION OF REALTORS®.
6. Honorary Members shall be individuals other than those engaged in the real estate business who have
contributed notably to this Association.
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