# DRONES

FREQUENTLY ASKED QUESTIONS

http://www.realtor.org/topics/drones

1 In response to NAR members’ growing interest in drones, or unmanned aircraft systems (“UAS”) as they are referred to by the Federal Aviation Administration (“FAA”), this FAQ has been assembled to help answer some of the most frequently asked questions NAR receives regarding the legal and regulatory landscape of UAS, and a real estate professional’s ability to use this emerging technology.

1) W HAT IS A UAS?

A UAS is the unmanned aircraft ( “ UA ” ) and all of the associated support equipment, control station, data links, telemetry, communications and navigation equipment, etc., necessary to operate

the unmanned aircraft.

The UA is the flying portion of the system, flown by a pilot via a ground control system, or autonomously through use of an on

- board computer, communication links and any additional equipment that is necessary for the UA to operate safely. The FAA issues an experimental airworthiness certificate for the entire system, not just the flying portion of the system.

2) H OW DO UAS TYPICALLY OPERATE ?

UAS flights are typically short in duration and flown at low altitudes in order to gather only the desired images or information related to a specific property or location. Most UAS fall into what is referred to as the micro UAS category, which means the UAS weighs 4.4 pounds or less. UAS operations are typically brief and more affordable than manned aircraft operations

, which make UAS well-suited for use by the real estate industry.

3) M AY I USE A UAS TO TAKE AERIAL IMAGES OF MY REAL ESTATE

LISTINGS ?

You may use a UAS only if you have received a Section 333 waiver from the FAA. Current FAA laws and regulations generally prohibit the

# DRONES

FREQUENTLY ASKED QUESTIONS

http://www.realtor.org/topics/drones

2 commercial use of UAS, which includes for the pu r pose of real estate marketing.

4) M AY I HIRE SOMEONE ELSE TO OPERATE A UAS TO TAKE AERIAL

IMAGES OF MY REAL ES TATE LISTINGS ?

Yes. You may hire an individual or compan y to operate a UAS on your behalf. However, before doing so, be sure to verify that the individual or company has successfully obtained a Section 333 waiver from the

FAA.

5) H AS NAR TAKEN A POSITION ON UAS ?

Yes. On November 10, 2014, the NAR Board of Directors approved the following official policy statement on unmanned aerial vehicles:

The National Association of REALTORS ® advises members that the use of unmanned aerial vehicles for real estate marketing is currently prohibited by the Federal Aviation Administration. Such prohibited use of unmanned aerial vehicles may lead to the assessment of substantial fines and penalties.

The National Association of REALTORS ® supports efforts to create new federal regulations to allow for the future commercial use of unmanned aerial vehicle technology by the real estate industry.

The National Association of REALTORS ® is committed to working with the Federal Aviation Administration, and any other relevant federal agencies, during the regulatory approval process. The National

Association of REALTORS ® will continue its ongoing efforts to educate

REALTORS ® abo ut the current and future regulatory structure for the safe and responsible operation of unmanned aerial vehicles.

# DRONES

FREQUENTLY ASKED QUESTIONS

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3 6) A RE THERE ANY EXCEPTI ONS TO THE PROHIBITI ON ON THE

COMMERCIAL USE OF UAS?

Yes. The FAA Modernization and Reform Act of 2012 provides the FAA with the ability to issue Section 333 waivers, which grant authorization for certain unmanned aircraft to perform commercial operations on a case

- by

- case basis.

7) H OW DO I APPLY FOR A S ECTION 333 WAIVER ?

The Section 333 waiver process involves the filing of a petition of exemption with the FAA. You can find more specific information about what a petition of exemption must contain and how to file you r petition

on the FAA’s website at: http://www.faa.gov/uas/legislative_programs/section_333/how_to_fil e_a_petition/

.

8) D OES THE S ECTION 333 WAIVER REQUIRE THE P ETITIONER TO

HAVE A PILOT ’ S LICENSE ?

Yes. An FAA

- issued pilot’s license is a required element of successfully obtaining a Section 333 waiver.

9) H OW LONG DOES THE S ECTION 333 WAIVER PROCESS TAKE ?

The FAA advises that Section 333 petitioners should allow up to 120 days after submission for a decision to be made on a petition of exemption. However, in M arch of 2015, the FAA made certain procedural changes that often result in a faster approval time. Since these chang es were implemented, the FAA has been approving an average of 50 Section 333 waivers a week.

# DRONES

FREQUENTLY ASKED QUESTIONS

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4 10) A RE THERE ANY PROPOSE D REGULATORY CHANGES TO ALLOW FOR

THE FUTURE COMMERCIA L USE OF UAS?

Yes. The FAA Modernization and Reform Act of 2012 charged the FAA with integrating the commercial use of UAS into national airspace. In February 2015, the FAA took the first step in doing so, and issued a Notice of Proposed Rulemaking on the Operation and Certification of

Small Unman ned Aircraft Systems (“Rule”). You can find a summary of

the Rule on the FAA’s website at : http://www.faa.gov/regulations_ policies/rulemaking/media/021515_sUAS_Summary.pdf

.

11) W HEN IS IT ANTICIPATE D THAT THE R ULE WILL BECOME FINA L ?

The FAA is working diligently to consider the over 4,000 com ment letters it received during the Rule’s comment period. While the typical timeframe for a proposed rule to become final is sixteen months from

the time a rule ’ s comment period closes , the Rule has the highest priority

within the FAA . T he FAA is determined to move forward as quickly as possible , and a final rule could be issued as soon as August 2016.

12) W HAT IF I WANT TO USE UAS BEFORE THE R ULE BECOMES FINAL ?

There are two options: 1) you can apply for a Section 333 waiver or 2) you can hire a company or individual that has already successfully obtained a Section 333 waiver. If you choose to hire a company to operate a UAS for your real estate marketing needs, or for some other commercial purpose, be sure to ask the individual or company if the y have a Section 333 waiver to operate the UAS for the purpose you are requesting.

# DRONES

FREQUENTLY ASKED QUESTIONS

http://www.realtor.org/topics/drones

5 13) I S INSURANCE AVAILABL E FOR UAS OPERATORS ?

Yes. Insurance companies offer coverage for UAS operators. Be sure to ask any individual or company you are working with if they are insured for the UAS operation. In addition, request that you be named as an additional insured for purposes related to the UAS operation.

14) W HAT CAN I DO TO LIMIT MY LEGAL LIABILITY WHEN HIRIN G A UAS

OPERATOR ?

You should request that the UAS operator indemnify you against any action, suits, damages, losses, costs and expenses (including, with out limitation, attorneys’ and fees and costs) arising fro m the UAS o peration

or the use of the related UAS images.

15) W HERE CAN I FIND A LIST OF INDIV I DUALS AND COMPANIES THAT

HAVE OBTAINED A S ECTION 333 WAIVER ?

NAR maintains a l ist of the individuals and companies specific to the real estate industry that have been granted Section 333 waivers

, available on REALTOR.org: http://www.realtor.org/articles/ list

- of

faa

- approved

- drone

- operators

- available

- on

- realtor.org

.

The FAA’s website also contains an up

- to

- date list of all of the individuals and companies that have be en granted Section 333 waivers: http://www.faa.gov/uas/legislative_programs/section_333/333_author izations/

.

16) C OULD I BE LEGALLY LIABLE IF I HIRE A PHOTOGRAPHER WHO DOES

NOT HAVE A S ECTION 333 WAVIER TO OPERATE A UAS FOR A

COMMERCIAL PURPOSES ?

The FAA’s mission is the protection of national airspace and the safe operation of aircraft. As such, the FAA’s enforc ement efforts with respect to UAS are focused on the UAS operator and the safety of the

# DRONES

FREQUENTLY ASKED QUESTIONS

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6 flight. Therefore, an impermissible or carless or reckless operation of a UAS could result in an FAA enforcement action against the UAS operator. However, beyond FAA enforcement, a real estate professional could be the subject of legal risk under state law if an individual is injured or an individual’s privacy or property rights are infringed upon as

a result of the UAS operation.

17) W HERE CAN I REPORT ANY SUSPECTED IMPR OPER USE OF A UAS?

Any concerns regarding the unauthorized commercial use or unsafe operation of a UAS can be directed to the FAA or to local law

enforcement authorities.

18) D OES USE OF A UAS WITHOUT A S ECTION 333 WAIVER CONSTITUTE A

VIOLATION OF THE REALTOR® C ODE OF E THICS ?

T he REALTOR® Code of Ethics does not address this type of conduct

. While REALTORS® are encouraged to always abide by local, state, and federal laws, it is not a REALTOR® association’s role to adjudicate

whether a REALTOR® has violated a local, state or federal law.

19) W HAT DUTY DOES AN MLS HAVE TO REMOVE UAS

- OBTAINED

IMAGES IN A LISTING THAT WERE OBTAINED W ITHOUT A S ECTION

333 WAIVER ?

An MLS does not have an obligation to investigate or to remove UAS

obtained images in listin gs where the MLS suspects that such images were not taken pursuant t o a Section 333 waiver. An MLS may create a policy prohibiting MLS participants from placing images on the MLS where such images were taken in violation of the FAA’s prohibition on the commercial use of UAS. Before creating a policy on this issue, an MLS should consider its ability to consistently police and thoroughly investigate whether such images are compliant with FAA rules a nd regulations.

# DRONES

FREQUENTLY ASKED QUESTIONS

http://www.realtor.org/topics/drones

7 20) W HERE CAN I FIND ADDITIONAL INFO RMATION ABOUT UAS?

There are many valuable UAS resources available on REALTOR.org, including:

 REALTOR.org page dedicated to UAS

, providing legal and regulatory updates, as well as other relevant UAS news and

information : http://www.realtor.org/topics/drones

 “Drone Fever: Getting Permission to Fly in the U.S.” w ebinar, hosted by the National Association of REALTORS® and presented by Hogan Lovells: www.realtor.org/articles/nar

- hosts

- uas

- webinar

- with

- hogan

- lovells

 “Window to the Law” video on the FAA’s February 2015 Notice of Proposed Rulemaking on the Operation and Certification of Small Unmanned Aircraft Systems: www.realtor.org/videos/window

- to

the

- law

- faa

- proposes

- drone

- rules

 Current list of real estate

- relate d Section 333 waiver holders: http://www.realtor.org/articles/list

- of

- faa

- approved

- drone

operators

- available

- on

- realtororg

The FAA’s website is also a great resource for UAS information :

 www.faa.gov/uas/

Information about the “Know Before You Fly Campaign”, a campaign dedicated to educating prospective UAS users about the safe and responsible operation of UAS, is available here :

 www.knowbeforeyoufly.org/