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It appears that the National Association of Realtors (NAR) is committed to gambling members again based on their comments at this year’s NAR NXT Conference. We have discussed this in another article, but let’s revisit the two most serious cases against members again.
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Potential class action no. 1
Five years ago, NAR started working Clear Cooperation Policy (CCP) “leveling the playing field,” which mandates that a listing be shared with the multiple listing service (MLS) within 24 to 48 hours. Although the aim was to ensure fair access for all members, this policy – with the exception of offices – forces landlords to use a one-size-fits-all approach.
As I predicted last year, CCP’s days are numbered, and change has already begun. That’s why NAR needs to pay attention to the writing on the wall if it wants to avoid more class action lawsuits in 2025.
Why the Clear Partnership Policy needs to go
The Clear Partnership Policy has come under scrutiny recently, mainly because of its potential violation of seller rights and its violation of antitrust laws. By forcing some homeowners to share their listings with other members, regardless of their wishes, the law oversteps its bounds, removing legitimate options for sellers who prioritize privacy or exclusivity.
The current Department of Justice (DOJ) has highlighted concerns about the untrustworthiness surrounding CCP, and major players such as Anywhere Real Estate and Compass have called for the policy to be repealed or at least for major changes to be made.
NAR came off the mark at the recent NXT Conference, showing that they are still in “kick the can down the road” mode. Their inaction can put us in the crosshairs of the next class action lawsuit. It’s not just a fight about industry practices – it’s about giving power back to homeowners.
I know what some of you are thinking: There is a chance that the incoming presidential administration and the new DOJ could decide to stop pursuing the NAR.
While that may be the case, the Clear Cooperative Policy is still ripe for class action because class action lawyers are not concerned with the DOJ; their concerns list the plaintiffs. If they do, it could cost the NAR and its members hundreds of millions more in dollars (and a lot more headaches) than they have already gone through.
Eliminating CCP in some local markets is already underway. The Park City Board of Realtors is an example: In October, the Park City Board of Realtors in Utah informed its members that it would no longer be using the NAR Clear Partnership Policy. This decision marked a significant departure from NAR guidelines, which allow local MLS to operate without complying with specific mandates of the national association.
The bottom line is that sellers must be free to choose how their property is marketed, whether through the MLS, a specialized brokerage, or another method. Protecting their rights is important – not only to comply with antitrust laws but also to the trust and honesty of our industry.
Agents need to rotate
The repeal of CCP will dramatically change the way agents work. For years, buyer’s agents relied on the law to get easy access to listings through the MLS. When the rule disappears, that access may decrease.
I predict that 20 percent of listings — a significant portion — will remain exclusive, never appearing in the MLS. For agents who rely heavily on showing other agents’ listings, this change will feel like a wake-up call. The solution? Pivot now.
Expertise on the list side of the business. The list is where control, power and long-term stability in this industry lies. Invest in building the skills and techniques needed to manage as a listing agent.
For the foreseeable future, make this your primary focus. Your future business depends on it.
Potential class action no. 2
Another prediction I made last year is coming true: the elimination of MLSs from the NAR. Let me explain why this is the next class action suit.
Forcing agents to join the NAR to access MLS services is a thing of the past an example of “tying” that is illegal under the antitrust laws. The practice combines two separate products — NAR membership and MLS access — forcing agents to buy one to get the other.
Such arrangements prevent competition by excluding non-NAR agents from an important industry tool and create a monopolistic situation. Courts have long ruled that binding agreements, which limit freedom of choice and limit competition, violate antitrust laws such as the Sherman and Clayton Acts.
Many multiple listing services (MLSs) have recently announced that their policies will differ from local or NAR policies from the commission’s litigation guidelines. Notable examples include:
- Bright MLS: Serving the Mid-Atlantic region, Bright MLS added an option to show listings if sellers were willing to offer a buyer’s agent commission.
- California Regional MLS (CRMLS): One of the largest national MLSs, CRMLS announced in mid-2024 its decision to allow listings to indicate whether sellers were willing to consider approval and, if so, what they were willing to offer.
- Northwest MLS (NWMLS): Covering the Pacific Northwest, the NWMLS chose to opt out of the NAR agreement, asserting, “The settlement removes the visibility of compensation for buyers and restricts seller choice by prohibiting sellers from making offers through the MLS. “
Why is this happening? A growing number of cases, including recent ones the membership agreement suit is three filed in California, makes NAR a liability for MLSs. The latest lawsuit was filed by UHOO Real Estate Services agent John Diaz, who is representing himself in the matter.
Filed in US District Court in Los Angeles, the suit says NAR, California Association of Realtors, Lodi Association of Realtors, and MetroList MLS as defendants. The case adds momentum to legal challenges questioning the necessity and legality of requiring Realtors to join multiple associations just to access the MLS.
This is not an isolated incident. Similar cases are included In Michigan, Illinois (although it was later withdrawn with filling plans) and in Pennsylvania. I Alabama Association of Realtors also expressed concern, urging the NAR to make membership optional. This wave of lawsuits highlights how associations and MLSs are revising their relationships with NAR to avoid legal challenges.
The writing is on the wall: More MLSs will follow. For agents, this means that it is important to adapt quickly to these shifts. Focus on building a strong list-based business, stay informed about the evolving legal landscape, and invest in ongoing training to stay ahead of the curve.
3 things you should focus on right now
Last year, we said this was coming, and now the collapse of CCP and the elimination of MLSs from NAR may be unfolding before our eyes.
Here’s what you need to do now to stay ahead:
- Step up your listing game: The list is the foundation of success in this new era, giving you control, power and opportunities for prosperity.
- Stay informed: Keep a close eye on changing NAR policies, ongoing cases, and how these changes affect your market. Knowledge is power.
- Invest in training and resources: Agents who adapt quickly will lead the pack. Focus on building the skills you need to stay competitive and relevant.
This is your chance to pivot and build a strategy that positions you as a leader in these changing times.
A call to action
This is a time of change in our industry, and you have a choice: adapt or be left behind. Don’t wait for the market to tell you about your future. Take control.
Because in this business, flexible agents win. Will you be one of them?
