As the real estate industry works to implement rule changes triggered by the National Association of REALTORS®’ (NAR) Aug. 17 mandate, further disruption potentially lies ahead as the future of the Clear Cooperation Policy (CCP) hangs in the balance.
Last week, the MLS Technology and Emerging Issues Advisory Board held its regularly scheduled meeting on Sept. 12 and 13, a gathering that was highly anticipated as a forum for debating the fate of the CCP. According to a statement from NAR, however, no decisions were made, and further discussions will take place in October.
A source familiar with NAR’s processes and legal strategy said that if the MLS Advisory Board chooses not to take action, it is likely because they want to confer with a different group or bring in experts that could help them “think through” potential changes to the policy. The source also said that the MLS Advisory Board has the option to refer the matter to another group within NAR without making a specific recommendation.
“As we communicated last weekend, these meetings are part of the process for evaluating potential MLS policy changes, which impact the entire industry and must involve robust discussion and input from stakeholders,” read the NAR statement. “The Advisory Board, joined by members of the NAR Leadership Team as guests, spent the past two days reviewing feedback and proposals regarding the Clear Cooperation Policy, optional no-comingling rule, and the Brokerage Back Office Feed.
“In its deliberation, the Advisory Board weighed a wide range of perspectives including buyers, sellers and real estate professionals, as well as fair housing principles, as they considered how to best meet these evolving stakeholder needs. Because these policies have far-reaching implications for the industry and require especially thorough deliberation, the Advisory Board will consider next steps with the Leadership Team. The Advisory Board intends to reconvene in October, after which time we will continue to keep (the industry) apprised of updates.”
While NAR contends that the CCP—which requires REALTORS® to add properties to NAR-affiliated MLSs within one day of marketing them elsewhere—was implemented to create a more transparent property market, the Department of Justice (DOJ) has indicated that it is still very focused on the CCP as part of a revived investigation into the association’s rules and policies. NAR recently promised to appeal the court decision that allowed the DOJ to continue that inquiry to the Supreme Court.
Industry leaders weighed in on the CCP earlier this month during RISMedia’s 36th Annual CEO & Leadership Exchange, where Compass CEO Robert Reffkin called on NAR to take emergency measures to repeal the policy.
“I think it’s not ‘clear cooperation.’ I think it’s forced cooperation,” Reffkin said, as part of a one-on-one interview with RISMedia Founder and CEO John Featherston.
Referring to Reffkin’s comments about “emergency” measures to repeal Clear Cooperation, the source said the executive and leadership team “can certainly use their discretion” without votes from the Advisory Board or MLS Committee, but added that NAR “wants to receive as much input and feedback” as possible in regard to the CCP.
As Compass has previously touted almost 70 brokerages who support a repeal of Clear Cooperation, the source said that there is no “threshold” for support in order for the Advisory Board to consider the proposal, though they are also not barred from taking into account things like the number of signatories to proposals or petitions.
eXp Realty CEO Leo Pareja strongly rebuked Reffkin’s stance during his subsequent appearance at the CEO & Leadership Exchange. “I fundamentally disagree with Robert. I fundamentally believe in organized real estate and how it functions in North America. We have a complete, accurate, liquid marketplace, which is the beauty of the MLSs,” he said. “I think what Robert is saying is selfish, and it’s not good for the consumer. We have to stop worrying about our stock price and take care of buyers and sellers.”
According to the source, rulings on all the relevant committees and boards are based on a simple majority vote. If and when a policy change is recommended to the MLS Committee, the source said NAR would solicit feedback and do extensive education and outreach on what the change is.
As far as timing, added the source, new policies or major revisions go into effect on the first of the next year—so in this case, Jan. 1, 2025—and those affected have until March or May to implement them. The source noted that when Clear Cooperation was enacted, MLSs had until May to adopt the policy.
