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NAR, Phoenix Realtors settle dispute over three-way agreement by Jeff Andrews for HousingWire

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The Phoenix Association of Realtors (PAR) has blinked first in its game of chicken with the National Association of Realtors (NAR).

The groups announced Thursday that they’ve come to an agreement that will pare down PAR’s membership option to agents who are not Realtors, bringing PAR into compliance with NAR’s bylaws.

The deal eliminates PAR’s MLS Choice membership option that allowed agents to become members of PAR without becoming members of the Arizona Association of Realtors or NAR while also having access to the Arizona Regional MLS (ARMLS).

In its place is “non-member MLS access” in which PAR will continue to offer ARMLS access to non-Realtors, as has been the case since 1996, and to also provide unspecified “products and services.” 

“This matter was never about MLS access, and NAR policy on this has not changed,” NAR said in a statement. “ARMLS is and has long been open to non-Realtors. MLSs have local discretion to determine individual participation requirements based on their market and applicable law.

“We are pleased to have reached this resolution, which protects the rigorous standards of the Realtor brand. We look forward to continuing to work with Phoenix Realtors in service of Realtors and our shared mission.”

Agents who take the non-member MLS access option are not allowed to use the Realtor name and are not members of local, state or national Realtor associations. They will not receive benefits related to these memberships.

At the heart of the dispute is NAR’s requirement that Realtors be members of their local, state and national Realtor associations, commonly known as the “three-way agreement.” NAR has come under increasing fire of late because of the rule, which critics say is anticompetitive.

In August 2024, a collection of Michigan real estate brokers filed an antitrust lawsuit against NAR over the rule, and brokers in other states have done the same. Defendants in the cases — Realtors associations and MLSs — have filed motions to dismiss.

Late last year, PAR announced that it would allow non-Realtors to access ARMLS beginning in 2025. In response, NAR sent PAR a cease-and-desist letter. PAR balked, and NAR initiated the process of revoking PAR’s charter.

“Phoenix Realtors remains committed to the Realtors brand, the three-way agreement, and the benefits made possible by the relationship between the Phoenix association, Arizona Association of Realtors and NAR,” PAR said in a statement. “This outcome supports both Phoenix Realtors and NAR’s ultimate goal of helping Realtors members succeed and the real estate industry at large thrive.”

The announcement isn’t likely to end the debate over the three-way agreement. The Austin Board of Realtors (ABoR) made a similar move, announcing recently that it will allow non-Realtors to access Unlock MLS beginning on June 1.

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