The immediate consequence of a board’s failure to comply with a policy mandated by NAR Board of Directors is that coverage under the Blanket Errors and Omissions insurance is jeopardized. Subsequent to that, it would be likely that the board would be requested to come before the Executive Committee to explain its refusal to comply with the policy in question. Based on the outcome of that proceeding, the Executive Committee would make a recommendation to the board of directors for action. The ultimate sanction for non-compliance with mandatory policies enacted by the Board of Directors is revocation of charter status.
Source: TAR
