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The National Association of Realtors (NAR) seems to be risking the membership once again based on their comments at this year’s NAR NXT Conference. We discussed this in another article, but let’s revisit two potential lawsuits facing members.
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Potential class action lawsuit No. 1
Five years ago, NAR implemented the Clear Cooperation Policy (CCP) to ensure fair access for all members. However, this policy has faced criticism for limiting options for homeowners. The days of the CCP are numbered, and change is already in motion, possibly leading to class action lawsuits in 2025.
Why the Clear Cooperation Policy needs to go
The CCP has drawn scrutiny for potential infringement on sellers’ rights and antitrust violations. Major players in the industry have called for changes to the policy. NAR’s inaction could lead to a class-action lawsuit, highlighting the importance of restoring power to homeowners.
Several local markets have already started getting rid of the CCP, emphasizing the need for sellers to have the freedom to choose how their property is marketed.
Agents need to pivot
The repeal of the CCP will require agents to pivot their strategies. Focusing on mastering the listing side of the business will be crucial for future success.
Potential class action lawsuit No. 2
The decoupling of MLSs from NAR is becoming a reality, potentially leading to the next class action suit. Forcing agents to join NAR to access MLS services may violate antitrust laws, creating a monopoly-like scenario. Several MLSs have announced policies differing from NAR’s, signaling a shift in the industry.
Notable examples of MLSs making changes in response to legal challenges include:
– Bright MLS: Serving the Mid-Atlantic region, Bright MLS now allows listings to indicate if sellers are willing to consider requests for concessions.
– California Regional MLS (CRMLS): One of the largest MLSs in the nation, CRMLS now allows listings to indicate if sellers are willing to consider concessions and specify what they are willing to offer.
– Northwest MLS (NWMLS): Covering the Pacific Northwest, NWMLS opted out of the NAR settlement, citing concerns about transparency and seller’s choice in making offers through the MLS.
The increase in lawsuits, including a recent three-way membership agreement suit in California, has put NAR at a liability for MLSs. This has led to MLSs reevaluating their ties to NAR to avoid legal entanglements, with similar lawsuits filed in Michigan, Illinois, Pennsylvania, and concerns raised by the Alabama Association of Realtors.
As MLSs continue to make changes, agents must adapt quickly by focusing on building a strong listing-based business, staying informed about legal developments, and investing in continuous training.
To stay ahead in this evolving landscape, agents should focus on strengthening their listing game, staying informed about policy changes and lawsuits, and investing in training and resources to remain competitive.
This transformation in the industry presents an opportunity for agents to pivot and position themselves as leaders in changing times. It’s crucial to adapt and take control of your future to thrive in the real estate market.