HousingWireHousingWire
The National Association of Realtors (NAR) came to a decision at a meeting last week on what to do about its Clear Cooperation Policy (CCP). That decision is to not make a decision — at least for now.
The anti-climactic non-ruling was reached on Friday after the trade group’s MLS technology and emerging issues advisory board debated on the industry tug-of-war over the policy. Real Estate News was first to report the story.
CCP has generated fierce debate from supporters and detractors alike. The policy, which requires Realtors to list properties on NAR-affiliated MLSs within one day of signing a listing agreement, is designed to prevent so-called pocket listings, or properties that are listed off-market and not advertised to the general public.
Denee Evans, CEO of the Council of Multiple Listing Services (CMLS), emailed its members and NAR last week to issue strong support for CCP. She said that concerns about the policy are “inherently invalid,” adding that none of them “merit the removal or significant weakening of a policy so critical to the integrity of our housing market.”
Given that exclusive listings are the lifeblood of an MLS, it’s not surprising that CMLS would support Clear Cooperation. Conversely, it’s not surprising that brokerages that want to maintain their own exclusive listings would oppose it.
Among the brokerages that oppose the policy are The Agency and Compass. The CEOs of both companies have been vocal in their opposition, stating that it inhibits seller choice and is thus anti-competitive in nature.
Looming over the policy is the ongoing presence of the Department of Justice (DOJ) in the real estate industry. The DOJ has had a particular interest in rules related to NAR and MLSs.
While the DOJ and NAR reached a settlement over the issues in 2020, an appeals court allowed the DOJ to withdraw from the settlement. That came shortly after NAR reached a settlement with home sellers over requirements make blanket offers of compensation to buyer agents on the MLS.
In response to the appeals court’s decision, NAR has appealed the ruling to the Supreme Court. But a more immediate path for NAR could come after the presidential election. While the Biden administration has made antitrust cases a priority for the DOJ, it’s somewhere between possible and probable that these concerns would not be pursued by the DOJ under a second Donald Trump administration.
NAR did not immediately respond to HousingWire‘s request for comment.
